1. Security and Ethical Challenges Chapter 11 Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 11-2 Learning Objectives Identify several ethical issues regarding how the use of information technologies in business affects –Employment –Individuality –Working conditions –Privacy –Crime –Health –Solutions to societal problems

3. 11-3 Learning Objectives Identify several types of security management strategies and defenses –Explain how they can be used to ensure the security of business applications of information technology Propose ways that business managers and professionals can help lessen the harmful effects, and increase the beneficial effects, of the use of information technology

4. 11-4 IT Security, Ethics, and Society Information technology has both beneficial and detrimental effects on society and people Manage work activities to minimize the detrimental effects Strive to optimize the beneficial effects

5. 11-5 Business Ethics Ethical responsibilities of business professionals Promote ethical uses of information technology Accept the ethical responsibilities of your job Properly perform your role as a human resource Consider the ethical dimensions of activities and decisions

6. 11-6 IT Security, Ethics, and Society

7. 11-7 Categories of Ethical Business Issues

8. 11-8 Corporate Social Responsibility Theories Stockholder Theory Social Contract Theory Stakeholder Theory Managers are agents of stockholders. Their ethical responsibility is to increase profits without violating laws or engaging in fraud Companies have an ethical responsibility to all members of society Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders

9. 11-9 Principles of Technology Ethics

10. 11-10 Ethical Guidelines of the AITP

11. 11-11 Responsible Professional Guidelines A responsible professional Acts with integrity Increases personal competence Sets high standards of personal performance Accepts responsibility for his/her work Advances the health, privacy, and general welfare of the public

12. 11-12 Computer Crime –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

13. 11-13 Corporate Protection Mechanisms

14. 11-14 Hacking The obsessive use of computers Unauthorized access/use of networked computers 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 vulnerabilities found for private advantage

15. 11-15 Common Hacking Tactics

16. 11-16 Cyber Theft Many computer crimes involve theft of money Most are “inside jobs” that involve unauthorized network entry and alteration of 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 cyber crime

17. 11-17 Cyberterrorism The leveraging of an organization’s or government’s computers and information –Particularly through the Internet –To cause physical, real-world harm or severe disruption of infrastructure Can have serious, large-scale influence –Can weaken a country’s economy –Can affect Internet-based businesses

18. 11-18 Cyberterrorism Life-support at Antarctic research station turned off Release of untreated sewage into waterways Examples of Cyberterrorism Nonessential systems shut down in nuclear power plants Estonian government ministry and banks knocked offline No successful attacks reported yet in the U.S.

19. 11-19 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 Internet or company networks Sniffers –Monitor network traffic or capacity to find evidence of improper use

20. 11-20 Internet Abuses in the Workplace General email abuses Plagiarism Unauthorized use and access Newsgroup postings Copyright infringement Transmission of confidential data Moonlighting Hacking Use of external ISPs Pornography Leisure use of Internet Non-work-related downloads or upload

21. 11-21 Software Piracy –Unauthorized copying of computer programs Licensing –Purchasing software is really a payment for a license for fair use –Site license allows a certain number of copies –Public domain software is not copyrighted A third of the software industry’s revenues are lost to piracy

22. 11-22 Theft of Intellectual Property Intellectual Property –Copyrighted material –Includes music, videos, images, articles, books, and software Copyright Infringement is Illegal –Peer-to-peer networking techniques have made it easy to trade pirated intellectual property Publishers Offer Inexpensive Online Music –Illegal downloading of music and video is down and continues to drop

23. 11-23 Viruses and Worms A virus is a program that cannot work without being inserted into another program –A worm is a distinct program that 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

24. 11-24 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, Notepad is opened, filled with nonsense characters

25. 11-25 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 –Renames itself to pose as one of 26 other common files along the way

26. 11-26 Top Five Virus Families of all Time SoBig, 2003 –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

27. 11-27 Top Five Virus Families of all Time Klez, 2002 –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

28. 11-28 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

29. 11-29 The Cost of Viruses, Trojans, Worms Cost of the Top Five Virus Families 115 million computers in 200 countries infected in 2004 Up to 11 million computers permanently infected Total economic damage was $166 to $202 billion in 2004 Average damage per computer is $277 to $366

30. 11-30 Adware and Spyware Adware 1.Software that purports to serve a useful purpose, and often does 2.Allows advertisers to display pop-up and banner ads without the consent of the computer user 1.Software that purports to serve a useful purpose, and often does 2.Allows advertisers to display pop-up and banner ads without the consent of the computer user Spyware 1. Adware that uses an Internet connection in the background, without the user’s permission or knowledge 2.Captures information about the user and sends it over the Internet 1. Adware that uses an Internet connection in the background, without the user’s permission or knowledge 2.Captures information about the user and sends it over the Internet

31. 11-31 Spyware Problems Spyware can steal private information and… –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 Spyware often can’t be eliminated

32. 11-32 Privacy Issues The power of information technology to store and retrieve information can have a negative effect on every individual’s right to privacy –Personal information is collected with every visit to a Web site –Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused

33. 11-33 Opt-in Versus Opt-out Opt-In You must explicitly consent to allow data to be compiled about you This is the default in Europe Opt-Out Data can be compiled about you unless you specifically request that it not be This is the default in the U.S.

34. 11-34 Additional Privacy Issues Violation of Privacy –Accessing individuals’ private email conversations and computer records –Collecting and sharing information about individuals gained from their visits to Internet websites Computer Monitoring –Always knowing where a person is –Mobile and paging services are becoming more closely associated with people than with places

35. 11-35 Privacy Issues Computer Matching –Using customer information gained from many sources to market additional business services Unauthorized Access of Personal Files –Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles

36. 11-36 Protecting Your Privacy on the Internet Ways to protect your privacy –Encrypt email –Send newsgroup postings through anonymous remailers –Ask your ISP not to sell your name and information to mailing list providers and other marketers –Don’t reveal personal data and interests on online service and website user profiles

37. 11-37 Computer Matching and Profiling Unauthorized information about you sold to information brokers or other companies Barrage of unsolicited promotional material and sales contacts Individuals mistakenly arrested and jailed Problems caused by mistakes in profiling and computer matching of personal data Privacy violations

38. 11-38 Privacy Laws Electronic Communications Privacy Act and Computer Fraud and Abuse Act –Prohibit intercepting data communications messages, stealing or destroying data, or trespassing in federal computer systems U.S. Computer Matching and Privacy Act –Regulates the matching of data held in federal agency files to verify eligibility for federal programs

39. 11-39 Privacy Laws Other laws impacting privacy and how much a company spends on compliance Sarbanes-Oxley Health Insurance Portability & Accountability Act (HIPAA) Gramm-Leach-Bliley USA PATRIOT Act California Security Breach Law Securities and Exchange Commission rule 17a-4

40. 11-40 Computer Libel and Censorship The opposite side of the privacy debate… –Freedom of information, speech, and press Biggest battlegrounds –Bulletin boards –Email boxes –Online files of Internet and public networks Weapons used in this battle –Spamming –Flame mail –Libel laws –Censorship

41. 11-41 Computer Libel and Censorship Spamming Indiscriminate sending of unsolicited email messages to many Internet users Flaming Sending extremely critical, derogatory, and often vulgar email messages or newsgroup postings to other Internet users or online services Especially prevalent on special-interest newsgroups

42. 11-42 Cyberlaw Laws intended to regulate activities over the Internet via electronic communication devices Encompasses a wide variety of legal and political issues Includes intellectual property, privacy, freedom of expression, and jurisdiction

43. 11-43 Cyberlaw The intersection of technology and the law is controversial –Some feel the Internet should not be regulated –Encryption and cryptography make traditional form of regulation difficult –The Internet treats censorship as damage and simply routes around it Cyberlaw only began to emerge in 1996 –Debate continues regarding the applicability of legal principles derived from issues that had nothing to do with cyberspace

44. 11-44 Other Challenges Employment –IT creates new jobs and increases productivity –It can also cause significant reductions in job opportunities, as well as requiring new job skills Computer Monitoring –Using computers to monitor the productivity and behavior of employees as they work –Criticized as unethical; it monitors individuals, not just work, and is done constantly –Criticized as invasion of privacy because many employees do not know they are being monitored

45. 11-45 Other Challenges IT has eliminated monotonous or obnoxious tasks Working Conditions But, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles Dehumanizes and depersonalizes activities because computers eliminate human relationships Inflexible systems Individuality

46. 11-46 Health Issues Cumulative Trauma Disorders (CTDs) Disorders suffered by people who sit at a PC or terminal and do fast-paced repetitive keystroke jobs Painful, crippling ailment of the hand and wrist Typically requires surgery to cure Carpal Tunnel Syndrome

47. 11-47 Ergonomics Designing healthy work environments Safe, comfortable, pleasant place for people to work Increases employee morale and productivity Also called human factors engineering

48. 11-48 Ergonomic Factors

49. 11-49 Societal Solutions Using information technologies to solve human and social problems Medical diagnosis Computer-assisted instruction Government program planning Environmental quality control Law enforcement Job placement

50. 11-50 Societal Solutions Detrimental effects of information technology –Often caused by individuals or organizations not accepting ethical responsibility for their actions

51. 11-51 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

52. 11-52 Security Management The goal of security management is the accuracy, integrity, and safety of all information system processes and resources

53. 11-53 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

54. 11-54 Public/Private Key Encryption

55. 11-55 Internetworked Security Defenses Firewalls 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 can’t prevent it

56. 11-56 Internet and Intranet Firewalls

57. 11-57 Denial of Service Attacks The victim’s ISP The victim’s website Zombie or slave computers commandeered by cyber criminals Denial of service attacks depend on three layers of networked computer systems

58. 11-58 Defending Against Denial of Service At victim’s Website Create backup servers and network connections At the ISP Monitor & block traffic spikes At Zombie machines Set/enforce security policies Scan for vulnerabilities

59. 11-59 Internetworked Security Defenses Email Monitoring –Use content monitoring software to scan for troublesome words 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

60. 11-60 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

61. 11-61 Other Security Measures Computer devices measure physical traits that make each individual unique Voice recognition, fingerprints, retina scan Biometrics Prevents computer failures or minimizes its effects Preventive maintenance Computer Failure Controls Arrange backups with a disaster recover organization

62. 11-62 Other Security Measures In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software –Fail-over: shifts to back up components –Fail-safe: the system continues to operate at the same level –Fail-soft: the system continues to operate at a reduced but acceptable level

63. 11-63 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

64. 11-64 Information System Controls

65. 11-65 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

66. 11-66 Protecting Yourself from Cyber Crime