© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 1 Chapter Extension 24 Computer Crime and Forensics

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 2 Software Piracy VideoSoftware Piracy Video (7 min) Compare and contrast the attitudes of the employees toward software piracy in this case with the attitudes of the boss and the legal counsel. (1/2 page word) (this is optional. If you missed a 2 point assignment, I suggest you pass it in) File is linked above video case left columnFile is linked above video case left column (SPA.rm) It takes time refresh if required, or get it below this file in the folder

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 3 In the news (7:08) Public Health Agency computers infected by worm Public Health Agency computers infected by worm

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 4 Agenda 1.What are the three types of computer crime? 2.What is the extent of computer crime? 3.How can computer crime be prevented? 4.What laws pertain to governmental search of computers? 5.What is computer forensics? 6.How should organizations respond to a suspected computer crime?

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 5 Video (7:20) Computer Forensics and Internet Safety

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 6 What Are the Three Types of Computer Crime? Crimes committed using computer Examples: theft of financial assets, phishing, child pornography Crimes committed against a computer Examples: viruses, unauthorized access, theft of proprietary data, theft of computer equipment Crimes where computer was used to store data that can be used as evidence Examples: address books, s. Databases of criminal activity

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 7 What Is the Extent of Computer Crime? Many organizations don’t report crimes Top reported losses Viruses, unauthorized access, laptop theft, theft of proprietary data

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 8 Computer Crime, 2005 US FBI/CSI Survey Figure CE 24-2

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 9 How Can Computer Crime Be Prevented? Develop security plan Manage security risk List assets Determine threats against assets Develop safeguards May be uneconomic to create safeguards Management may accept risk of loss

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 10 In Canada If it is on the office computer it belongs to the company and If it is offensive it can cost a company thousands of dollars and you are unemployed

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 11 What Is Computer Forensics? Forensics Use of science to obtain data for use by legal system Computer forensics Identification, collection, examination, and preservation of digitally recorded data Easy to damage data during process Deleted data not really gone System de-allocates space on disk Data still resides there until over-written Software tools can read de-allocated space

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 12 Computer Forensics, continued Data may be hidden in many locations on network Files can be disguised by name and type Steganography Messages hid by encoding them in files Hidden in essential overhead data Programs for finding steganography are not effective

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 13 Organizational Responses to a Suspected Computer Crime Treat like any other security incident Develop incident response plan Actions should depend upon nature of crime Contain, eradicate, and recover Preserve evidence for prosecution May have to allow attack to continue to gather evidence Balance liability against need to know full nature of attack

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 14 The Sarbanes-Oxley Act of 2002 (US) Revision of Exchange Act of 1934 Enacted to prevent corporate fraud Requires management: Create internal controls for production of financial statements Issue statement attesting to control activities External auditor must issue opinion on quality of controls Exposes both management and external auditor to financial and criminal liability Goal was to upgrade financial reporting

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 15 The Sarbanes-Oxley Act of 2002 (US) Intended to improve trust in financial reports More than 15 percent of IS will be diverted to SOx compliance No one knows exactly what is necessary for compliance Act requires external auditors become more independent Act is vague and is often given broadest possible interpretation Potential for millions of dollars to be wasted in compliance Implications for Canada: If a company is listed on the US stock marked it is subject to US laws