1. Confidentiality and Privacy Controls
Chapter 9

2. Learning Objectives
Identify and explain controls designed to protect the confidentiality of sensitive information.
Identify and explain controls designed to protect the privacy of customers’ personal information.
Explain how the two basic types of encryption systems work.

3. CONFIDENTIALITY
SYSTEMS
RELIABILITY
According to the Trust Services framework, reliable systems satisfy five principles:
Security (discussed in Chapter 8)
Confidentiality
Privacy
Processing integrity
Availability
CONFIDENTIALITY
PRIVACY
PROCESSING INTEGRITY
AVAILABILITY
SECURITY

4. Protecting Confidentiality of Sensitive Information
Identify and classify information to protect
Where is it located and who has access?
Classify value of information to organization
Encryption
Protect information in transit and in storage
Access controls
Information rights management (IRM)
Controlling outgoing information - DLP
Digital watermarks
Training

5. Identification and Classification
Intellectual Property (IP)
Strategic plans
Trade secrets
Cost information
Legal documents
Process improvements
All need to be secured

6. Encryption
Encryption alone is not sufficient to protect confidentiality. Given enough time, many encryption schemes can be broken.
Access controls are also needed
Strong authentication techniques are necessary.

7. Controlling Access Information Rights Management (IRM) software
Can limit the actions (read, write, change, delete, copy, etc.) that authorized users can perform when accessing confidential information
Data Loss Prevention (DLP) software
Digital watermarks
Physical access controls
System outputs
Magnetic and optical media
Voice-over-the-Internet (VoIP) technology
Virtualization and cloud computing

8. Training
Employee use of , instant messaging (IM), blogs and social media represent some of the greatest threats to the confidentiality of sensitive information.
Use of encryption software
Leaving workstations unattended
Code reports to reflect importance
Clean desk policy

9. PRIVACY
SYSTEMS
RELIABILITY
In the Trust Services framework, the privacy principle is closely related to the confidentiality principle.
Primary difference is that privacy focuses on protecting personal information about customers rather than organizational data.
CONFIDENTIALITY
PRIVACY
PROCESSING INTEGRITY
AVAILABILITY
SECURITY

10. Privacy Same controls as confidentiality
Identification and classification
Encryption
Access control
Training

11. Privacy Concerns
SPAM
Unsolicited that contains either advertising or offensive content
Controlling the Assault of Non-Solicited Pornography and Marketing Act. CAN-SPAM (2003)
Criminal and civil penalties for spamming

12. Privacy Concerns
Organizations must carefully follow the CAN-SPAM guidelines, which include:
The sender’s identity must be clearly displayed in the message header.
The subject field in the header must clearly identify the message as an advertisement or solicitation.
The body must provide recipients with a working link that can be used to “opt out” of future .
The body must include the sender’s valid postal address.
Organizations should not:
Send to randomly generated addresses.
Set up websites designed to harvest addresses of potential customers.

13. Privacy Concerns Identity Theft
The unauthorized use of someone’s personal information for the perpetrator’s benefit.
Companies have access to and thus must control customer’s personal information.

14. Privacy Regulatory Acts
A number of regulations, including the Health Insurance Portability and Accountability Act (HIPAA), Health Information Technology for Economic and Clinical Health Act (HITECH), and the Financial Services Modernization Act (aka, Gramm-Leach-Billey Act) require organizations to protect the privacy of customer information.

15. ENCRYPTION
Encrypting sensitive stored data provides one last barrier that must be overcome by an intruder.
Encryption plays an essential role in ensuring and verifying the validity of e-business transactions.
Therefore, accountants, auditors, and systems professionals need to understand encryption.

16. Encryption Steps
Takes plaintext and with an encryption key and algorithm, converts to unreadable ciphertext (sender of message)
To read ciphertext, an encryption key reverses the process to make information readable (receiver of message)
To encrypt or decrypt, both a key and an algorithm are needed

17. Encryption Strength Key length (longer=stronger) Algorithm
Number of bits (characters) used to convert text into blocks
256 is common
Algorithm
Manner in which key and text is combined to create scrambled text
Policies concerning encryption keys
Stored securely with strong access codes

18. Types of Encryption Uses one key to encrypt and decrypt
Symmetric
Asymmetric
Uses one key to encrypt and decrypt
Both parties need to know the key
Need to securely communicate the shared key
Cannot share key with multiple parties, they get their own (different) key from the organization
Since both sides of the transaction share the key there is no way to prove which party created a document.
Uses two keys
Public—everyone has access
Private—used to decrypt (only known by you)
Public key can be used by all your trading partners
Can create digital signatures

19. ENCRYPTION Hybrid Solution Use symmetric for encrypting information
Use asymmetric for encrypting symmetric key for decryption

20. Hashing Converts information into a “hashed” code of fixed length.
The code can not be converted back to the text.
If any change is made to the information the hash code will change, thus enabling verification of information.

21. Digital Signature
Hash of a document that is encrypted using document creators’ private key
Provides proof:
That document has not been altered
Of the creator of the document

22. Digital Certificate
Electronic document that contains an entity’s public key
Certifies the identity of the owner of that particular public key
Issued by Certificate Authority
Public Key Infrastructure (PKI)

23. Virtual Private Network (VPN)
The internet provides inexpensive transmission, but data is easily intercepted.
Encryption solves the interception issue.
If data is encrypted before sending it, a virtual private network (VPN) is created.
Provides the functionality of a privately owned network
But uses the Internet

24. Virtual Private Network
Securely transmits encrypted data between sender and receiver
Sender and receiver have the appropriate encryption and decryption keys.