2. Security and Ethical Challenges
Chapter 13
Security and Ethical Challenges

3. Learning Objectives
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

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. Case 1: Cyberscams and Cybercriminals
Cyberscams are today’s fastest-growing criminal niche
87 percent of companies surveyed reported a security incident
The U.S. Federal Trade Commission says identity theft is its top complaint
eBay has 60 people combating fraud; Microsoft has 65
Stolen credit card account numbers are regularly sold online

6. Case Study Questions
What are several reasons why “cyberscams are today’s fastest-growing criminal niche”?
Explain why the reasons you give contribute to the growth of cyberscams
What are several security measures that could be implemented to combat the spread of cyberscams?
Explain why your suggestions would be effective in limiting the spread of cyberscams

7. Case Study Questions
Which one or two of the four top cybercriminals described in this case poses the greatest threat to businesses? To consumers?
Explain the reasons for your choices, and how businesses and consumers can protect themselves from these cyberscammers

8. IT Security, Ethics, and Society

9. 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 of information technology
Optimize the beneficial effects

10. Business Ethics
Ethics questions that managers confront as part of their daily business decision making include
Equity
Rights
Honesty
Exercise of corporate power

11. Categories of Ethical Business Issues

12. Corporate Social Responsibility Theories
Stockholder Theory
Managers are agents of the stockholders
Their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices
Social Contract Theory
Companies have ethical responsibilities to all members of society, who allow corporations to exist

13. Corporate Social Responsibility Theories
Stakeholder Theory
Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders
Stakeholders are all individuals and groups that have a stake in, or claim on, a company

14. Principles of Technology Ethics
Proportionality
The good achieved by the technology must outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk
Informed Consent
Those affected by the technology should understand and accept the risks

15. Principles of Technology Ethics
Justice
The benefits and burdens of the technology should be distributed fairly.
Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk
Minimized Risk
Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk

16. AITP Standards of Professional Conduct

17. 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

18. 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

19. Cybercrime Protection Measures

20. Hacking Hacking is Electronic Breaking and Entering Cracker
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

21. 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

22. 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 address or Web page to trick users into passing along critical information like passwords or credit card numbers

23. 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 , or steal passwords

24. 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

25. 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

26. 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

27. 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

28. Internet Abuses in the Workplace
General 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

29. A third of the software industry’s revenues are lost to piracy
Software Piracy
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
A third of the software industry’s revenues are lost to piracy

30. Theft of Intellectual Property
Copyrighted material
Includes such things as 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

31. 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
and file attachments
Disks from contaminated computers
Shareware

32. Top Five Virus Families of all Time
My Doom, 2004
Spread via and over Kazaa file-sharing network
Installs a back door on infected computers
Infected 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

33. Top Five Virus Families of all Time
Netsky, 2004
Mass-mailing worm that spreads by ing itself to all 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

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

35. Top Five Virus Families of all Time
Klez, 2002
A mass-mailing 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

36. 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

37. 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

38. Adware and Spyware Adware Spyware
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

39. 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

40. 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

41. Opt-in Versus Opt-out Opt-In Opt-Out
You 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 it not be
This is the default in the U.S.

42. Privacy Issues Violation of Privacy Computer Monitoring
Accessing individuals’ private 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

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

44. Protecting Your Privacy on the Internet
There are multiple ways to protect your privacy
Encrypt
Send newsgroup postings through anonymous r ers
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

45. 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-related 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

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

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

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

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

50. 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

51. Other Challenges Employment Computer Monitoring
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 because 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

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

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

54. Ergonomics Designing healthy work environments
Safe, comfortable, and pleasant for people to work in
Increases employee morale and productivity
Also called human factors engineering

55. Ergonomics Factors

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

57. Societal Solutions The detrimental effects of information technology
Often caused by individuals or organizations not accepting ethical responsibility for their actions

58. 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

59. Case 2: Data Security Failures
Security Breach Headlines
Identity thieves stole information on 145,000 people from ChoicePoint
Bank of America lost backup tapes that held data on over 1 million credit card holders
DSW had its stores’ credit card data breached; over 1 million had been accessed
Corporate America is finally owning up to a long-held secret
It can’t safeguard its most valuable data

60. Case Study Questions
Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies?
What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources like the incident at Lowe’s?

61. Case Study Questions
What security safeguards would have deterred the loss of customer data at
TCI
Bank of America
ChoicePoint?

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

63. 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

64. Public/Private Key Encryption

65. 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

66. Internet and Intranet Firewalls

67. 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

68. 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

69. Internetworked Security Defenses
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

70. 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

71. 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

72. 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

73. 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

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

75. 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

76. Protecting Yourself from Cybercrime

77. Case 3: Managing Information Security
OCTAVE Security Process Methodology
Risk Evaluation
Self-direction by people in the organization
Adaptable measures that can change with technology
A defined process and standard evaluation procedures
A foundation for a continual process that improves security over time
Risk Management
A forward-looking view
A focus on a “critical few” security issues
Integrated management of security policies and strategies

78. Case 3: Managing Information Security
Organizational and Cultural
Open communication of risk information and activities build around collaboration
A global perspective on risk in the context of the organization’s mission and business objectives
Teamwork

79. Case Study Questions
What are security managers doing to improve information security?
How does the OCTAVE methodology work to improve security in organizations?
What does Lloyd Hession mean when he says information security is “not addressed simply by the firewalls and antivirus tools that are already in place”?

80. Case 4: Maintaining Software Security
Security professionals have 7 to 21 days before hacker’s tools used to exploit the most recent vulnerabilities become available on the Internet
Microsoft’s monthly patch-release date is known as “Patch Tuesday”
Security software companies go to work immediately to update their products
Update must be thoroughly tested before being deployed

81. Case Study Questions
What types of security problems are typically addressed by a patch-management strategy?
Why do such problems arise in the first place?
What challenges does the process of applying software patches and updates pose for many businesses?
What are the limitations of the patching process?

82. Case Study Questions
Does the business value of a comprehensive patch-management strategy outweigh its costs, its limitations, and the demands it placed on the IT function?