1. McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

2. McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Security and Ethical Challenges Chapter 13

3. 13-3 Identify several ethical issues in how the use of information technologies in business affects Employment Individuality Working conditions Privacy Crime Health Solutions to societal problems Learning Objectives

4. 13-4 Learning Objectives Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of information technology

5. 13-5 Computer Crime Computer crime includes Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources The unauthorized release of information The unauthorized copying of software Denying an end user access to his/her own hardware, software, data, or network resources Using or conspiring to use computer or network resources illegally to obtain information or tangible property

6. 13-6 Cybercrime Protection Measures

7. 13-7 Hacking Hacking is The obsessive use of computers The unauthorized access and use of networked computer systems Electronic Breaking and Entering Hacking into a computer system and reading files, but neither stealing nor damaging anything Cracker A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage

8. 13-8 Common Hacking Tactics Denial of Service Hammering a website’s equipment with too many requests for information Clogging the system, slowing performance, or crashing the site Scans Widespread probes of the Internet to determine types of computers, services, and connections Looking for weaknesses

9. 13-9 Common Hacking Tactics Sniffer Programs that search individual packets of data as they pass through the Internet Capturing passwords or entire contents Spoofing Faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers

10. 13-10 Common Hacking Tactics Trojan House A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software Back Doors A hidden point of entry to be used in case the original entry point is detected or blocked Malicious Applets Tiny Java programs that misuse your computer’s resources, modify files on the hard disk, send fake email, or steal passwords

11. 13-11 Common Hacking Tactics War Dialing Programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection Logic Bombs An instruction in a computer program that triggers a malicious act Buffer Overflow Crashing or gaining control of a computer by sending too much data to buffer memory

12. 13-12 Common Hacking Tactics Password Crackers Software that can guess passwords Social Engineering Gaining access to computer systems by talking unsuspecting company employees out of valuable information, such as passwords Dumpster Diving Sifting through a company’s garbage to find information to help break into their computers

13. 13-13 Cyber Theft Many computer crimes involve the theft of money The majority are “inside jobs” that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved Many attacks occur through the Internet Most companies don’t reveal that they have been targets or victims of cybercrime

14. 13-14 Unauthorized Use at Work Unauthorized use of computer systems and networks is time and resource theft Doing private consulting Doing personal finances Playing video games Unauthorized use of the Internet or company networks Sniffers Used to monitor network traffic or capacity Find evidence of improper use

15. 13-15 Internet Abuses in the Workplace General email abuses Unauthorized usage and access Copyright infringement/plagiarism Newsgroup postings Transmission of confidential data Pornography Hacking Non-work-related download/upload Leisure use of the Internet Use of external ISPs Moonlighting

16. 13-16 Viruses and Worms A virus is a program that cannot work without being inserted into another program A worm can run unaided These programs copy annoying or destructive routines into networked computers Copy routines spread the virus Commonly transmitted through The Internet and online services Email and file attachments Disks from contaminated computers Shareware

17. 13-17 Top Five Virus Families of all Time My Doom, 2004 Spread via email and over Kazaa file-sharing network Installs a back door on infected computers Infected email poses as returned message or one that can’t be opened correctly, urging recipient to click on attachment Opens up TCP ports that stay open even after termination of the worm Upon execution, a copy of Notepad is opened, filled with nonsense characters

18. 13-18 Top Five Virus Families of all Time Netsky, 2004 Mass-mailing worm that spreads by emailing itself to all email addresses found on infected computers Tries to spread via peer-to-peer file sharing by copying itself into the shared folder It renames itself to pose as one of 26 other common files along the way

19. 13-19 Top Five Virus Families of all Time SoBig, 2004 Mass-mailing email worm that arrives as an attachment Examples: Movie_0074.mpg.pif, Document003.pif Scans all.WAB,.WBX,.HTML,.EML, and.TXT files looking for email addresses to which it can send itself Also attempts to download updates for itself

20. 13-20 Top Five Virus Families of all Time Klez, 2002 A mass-mailing email worm that arrives with a randomly named attachment Exploits a known vulnerability in MS Outlook to auto-execute on unpatched clients Tries to disable virus scanners and then copy itself to all local and networked drives with a random file name Deletes all files on the infected machine and any mapped network drives on the 13th of all even-numbered months

21. 13-21 Top Five Virus Families of all Time Sasser, 2004 Exploits a Microsoft vulnerability to spread from computer to computer with no user intervention Spawns multiple threads that scan local subnets for vulnerabilities

22. 13-22 The Cost of Viruses, Trojans, Worms Cost of the top five virus families Nearly 115 million computers in 200 countries were infected in 2004 Up to 11 million computers are believed to be permanently infected In 2004, total economic damage from virus proliferation was $166 to $202 billion Average damage per computer is between $277 and $366

23. 13-23 Adware and Spyware Adware Software that purports to serve a useful purpose, and often does Allows advertisers to display pop-up and banner ads without the consent of the computer users Spyware Adware that uses an Internet connection in the background, without the user’s permission or knowledge Captures information about the user and sends it over the Internet

24. 13-24 Spyware Problems Spyware can steal private information and also Add advertising links to Web pages Redirect affiliate payments Change a users home page and search settings Make a modem randomly call premium-rate phone numbers Leave security holes that let Trojans in Degrade system performance Removal programs are often not completely successful in eliminating spyware

25. 13-25 Security Management of IT The Internet was developed for inter-operability, not impenetrability Business managers and professionals alike are responsible for the security, quality, and performance of business information systems Hardware, software, networks, and data resources must be protected by a variety of security measures

26. 13-26 Security Management The goal of security management is the accuracy, integrity, and safety of all information system processes and resources

27. 13-27 Internetworked Security Defenses Encryption Data is transmitted in scrambled form It is unscrambled by computer systems for authorized users only The most widely used method uses a pair of public and private keys unique to each individual

28. 13-28 Public/Private Key Encryption

29. 13-29 Internetworked Security Defenses Firewalls A gatekeeper system that protects a company’s intranets and other computer networks from intrusion Provides a filter and safe transfer point for access to/from the Internet and other networks Important for individuals who connect to the Internet with DSL or cable modems Can deter hacking, but cannot prevent it

30. 13-30 Internet and Intranet Firewalls

31. 13-31 Denial of Service Attacks Denial of service attacks depend on three layers of networked computer systems The victim’s website The victim’s Internet service provider Zombie or slave computers that have been commandeered by the cybercriminals

32. 13-32 Defending Against Denial of Service At Zombie Machines Set and enforce security policies Scan for vulnerabilities At the ISP Monitor and block traffic spikes At the Victim’s Website Create backup servers and network connections

33. 13-33 Internetworked Security Defenses Email Monitoring Use of content monitoring software that scans for troublesome words that might compromise corporate security Virus Defenses Centralize the updating and distribution of antivirus software Use a security suite that integrates virus protection with firewalls, Web security, and content blocking features

34. 13-34 Other Security Measures Security Codes Multilevel password system Encrypted passwords Smart cards with microprocessors Backup Files Duplicate files of data or programs Security Monitors Monitor the use of computers and networks Protects them from unauthorized use, fraud, and destruction

35. 13-35 Other Security Measures Biometrics Computer devices measure physical traits that make each individual unique Voice recognition, fingerprints, retina scan Computer Failure Controls Prevents computer failures or minimizes its effects Preventive maintenance Arrange backups with a disaster recovery organization

36. 13-36 Other Security Measures In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software that provide Fail-over capability: shifts to back up components Fail-save capability: the system continues to operate at the same level Fail-soft capability: the system continues to operate at a reduced but acceptable level

37. 13-37 Other Security Measures A disaster recovery plan contains formalized procedures to follow in the event of a disaster Which employees will participate What their duties will be What hardware, software, and facilities will be used Priority of applications that will be processed Use of alternative facilities Offsite storage of databases

38. 13-38 Information System Controls Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

39. 13-39 Auditing IT Security IT Security Audits Performed by internal or external auditors Review and evaluation of security measures and management policies Goal is to ensure that that proper and adequate measures and policies are in place

40. 13-40 Protecting Yourself from Cybercrime