1. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved CHAPTER 4 ETHICS AND INFORMATION SECURITY Business Driven Information Systems 2e

2. 4-2 Chapter Four Overview SECTION 4.1 - ETHICS –Ethics –Information Ethics –Developing Information Management Policies –Ethics in the Workplace SECTION 4.2 - INFORMATION SECURITY –Protecting Intellectual Assets –The First Line of Defense - People –The Second Line of Defense - Technology

3. 4-3 Organizational Fundamentals – Ethics and Security Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful In recent years, such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security

4. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved ETHICS SECTION 4.1

5. 4-5 LEARNING OUTCOMES 1.Explain the ethical issues surrounding information technology 2.Identify the differences between an ethical computer use policy and an acceptable computer use policy 3.Describe the relationship between an email privacy policy and an Internet use policy

6. 4-6 LEARNING OUTCOMES 4.Explain the effects of spam on an organization 5.Summarize the different monitoring technologies and explain the importance of an employee monitoring policy

7. 4-7 ETHICS Ethics – the principles and standards that guide our behavior toward other people Issues affected by technology advances –Intellectual property –Copyright –Fair use doctrine –Pirated software –Counterfeit software

8. 4-8 ETHICS Privacy is a major ethical issue –Privacy – the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent –Confidentiality – the assurance that messages and information are available only to those who are authorized to view them

9. 4-9 ETHICS One of the main ingredients in trust is privacy Primary reasons privacy issues lost trust for ebusiness

10. 4-10 INFORMATION ETHICS Individuals form the only ethical component of IT –Individuals copy, use, and distribute software –Search organizational databases for sensitive and personal information –Individuals create and spread viruses –Individuals hack into computer systems to steal information –Employees destroy and steal information

11. 4-11 Information Has No Ethics Acting ethically and legally are not always the same

12. 4-12 Information Has No Ethics Information does not care how it is used Information will not stop itself from sending spam, viruses, or highly-sensitive information Information cannot delete or preserve itself

13. 4-13 DEVELOPING INFORMATION MANAGEMENT POLICIES E-policies typically include: –Ethical computer use policy –Information privacy policy –Acceptable use policy –Email privacy policy –Internet use policy –Anti-spam policy

14. 4-14 Ethical Computer Use Policy Ethical computer use policy – contains general principles to guide computer user behavior The ethical computer user policy ensures all users are informed of the rules and, by agreeing to use the system on that basis, consent to abide by the rules

15. 4-15 Ethical Computer Use Policy 1.Information is a valuable corporate asset 2.The CIO is steward of corporate information 3.The CIO is responsible for information access 4.The CIO is responsible for preventing information destruction 5.The CIO is responsible for information management practices and policies 6.The CIO must execute the information management policies

16. 4-16 Sarbanes – Oxley (2002) Change management procedures - controls designed to ensure changes meet business requirements and are authorized.Change management Record retention policies Source code/document version control procedures - controls designed to protect the integrity of program codeSource codedocumentversion control Software development life cycle standards - controls designed to ensure IT projects are effectively managed.Software development life cycle Security policies, standards and processes - controls designed to secure access based on business need.Security Incident management policies and procedures - controls designed to address operational processing errors.Incident management Technical support policies and procedures - policies to help users perform more efficiently and report problems.Technical support Hardware/software configuration, installation, testing, management standards, policies and procedures.Hardwaresoftware Disaster recovery/backup and recovery procedures, to enable continued processing despite adverse conditionsDisaster recoverybackup and recovery

17. 4-17 Information Privacy Policy The unethical use of information typically occurs “unintentionally” when it is used for new purposes Information privacy policy - contains general principles regarding information privacy

18. 4-18 Information Privacy Policy Information privacy policy guidelines 1.Adoption and implementation of a privacy policy 2.Notice and disclosure 3.Choice and consent 4.Information security 5.Information quality and access

19. 4-19 Acceptable Use Policy Acceptable use policy (AUP) – a policy that a user must agree to follow in order to be provided access to a network or to the Internet An AUP usually contains a nonrepudiation clause

20. 4-20 Acceptable Use Policy 1.Will not violate any laws 2.Will not break the security 3.Will not post commercial messages 4.Will not perform nonrepudiation 5.Will not send spam 6.Will not send mail bombs

21. 4-21 Email Privacy Policy Organizations can mitigate the risks of email and instant messaging communication tools by implementing and adhering to an email privacy policy Email privacy policy – details the extent to which email messages may be read by others

22. 4-22 Email Privacy Policy

23. 4-23 Email Privacy Policy 1.Should compliment ethical computer use policy 2.Defines who are legitimate email users 3.Identifies backup procedures 4.Explains legitimate grounds for reading user email 5.Informs email control 6.Explains ramifications of leaving 7.Asks employees to be careful when posting organizational information

24. 4-24 Internet Use Policy Internet use policy – contains general principles to guide the proper use of the Internet –Describes available Internet services –Defines the purpose and restriction of Internet access –Complements the ethical computer use policy –Describes user responsibilities –States the ramification for violations

25. 4-25 Anti-Spam Policy Spam – unsolicited email Spam accounts for 40% to 60% of most organizations’ email and cost U.S. businesses over $14 billion in 2005 Anti-spam policy – simply states that email users will not send unsolicited emails (or spam)

26. 4-26 ETHICS IN THE WORKPLACE Workplace monitoring is a concern for many employees Organizations can be held financially responsible for their employees’ actions The dilemma surrounding employee monitoring in the workplace is that an organization is placing itself at risk if it fails to monitor its employees, however, some people feel that monitoring employees is unethical

27. 4-27 Monitoring Technologies Monitoring – tracking people’s activities by such measures as number of keystrokes, error rate, and number of transactions processed Common monitoring technologies include: –Key logger or key trapper software –Hardware key logger –Cookie –Adware –Spyware –Web log –Clickstream

28. 4-28 Employee Monitoring Policies Employee monitoring policies – explicitly state how, when, and where the company monitors its employees 1.Be specific 2.Enforce the policy 3.Enforce the policy the same for all employees 4.Communicate rights to monitor all employees 5.State when monitoring will be performed 6.State what will be monitored 7.Describe types of information collected 8.State consequences for violating policies 9.State provisions for policy updates 10.Specify scope and manner of monitoring 11.Obtain written signature acknowledging policies

29. 4-29 OPENING CASE QUESTIONS Sarbanes-Oxley 1.Define the relationship between ethics and the Sarbanes-Oxley Act 2.Why is records management an area of concern for the entire organization and not just the IT department? 3.Identify two policies an organization can implement to achieve Sarbanes-Oxley compliance?

30. 4-30 OPENING CASE QUESTIONS Sarbanes-Oxley 4.What ethical dilemmas are being solved by implementing Sarbanes-Oxley? 5.What is the biggest roadblock for organizations that are attempting to achieve Sarbanes-Oxley compliance?

31. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved INFORMATION SECURITY SECTION 4.2

32. 4-32 LEARNING OUTCOMES 6.Describe the relationship between information security policies and an information security plan 7.Summarize the five steps to creating an information security plan 8.Provide an example of each of the three primary security areas: (1) authentication and authorization, (2) prevention and resistance, and (3) detection and response 9.Describe the relationships and differences between hackers and viruses

33. 4-33 Downtime

34. 4-34 Downtime How Much Will Downtime Cost Your Business?

35. 4-35 PROTECTING INTELLECTUAL ASSETS Organizational information is intellectual capital - it must be protected Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization Ebusiness automatically creates tremendous information security risks for organizations

36. 4-36 PROTECTING INTELLECTUAL ASSETS

37. 4-37 PROTECTING INTELLECTUAL ASSETS

38. 4-38 THE FIRST LINE OF DEFENSE - PEOPLE Organizations must enable employees, customers, and partners to access information electronically The biggest issue surrounding information security is not a technical issue, but a people issue 33% of security incidents originate within the organization –Insiders – legitimate users who purposely or accidentally misuse their access to the environment and cause some kind of business-affecting incident

39. 4-39 THE FIRST LINE OF DEFENSE - PEOPLE The first line of defense an organization should follow to help combat insider issues is to develop information security policies and an information security plan –Information security policies –Information security plan

40. 4-40 THE FIRST LINE OF DEFENSE - PEOPLE Hackers frequently use “social engineering” to obtain password –Social engineering – using one’s social skills to trick people into revealing access credentials or other information valuable to the attacker

41. 4-41 THE FIRST LINE OF DEFENSE - PEOPLE Five steps to creating an information security plan: 1.Develop the information security policies 2.Communicate the information security policies 3.Identify critical information assets and risks 4.Test and reevaluate risks 5.Obtain stakeholder support

42. 4-42 THE SECOND LINE OF DEFENSE - TECHNOLOGY There are three primary information technology security areas 1.Authentication and authorization 2.Prevention and resistance 3.Detection and response

43. 4-43 Authentication and Authorization Authentication – a method for confirming users’ identities Authorization – the process of giving someone permission to do or have something The most secure type of authentication involves: 1.Something the user knows 2.Something the user has 3.Something that is part of the user

44. 4-44 Something the User Knows Such As a User ID and Password This is the most common way to identify individual users and typically contains a user ID and a password This is also the most ineffective form of authentication Over 50 percent of help-desk calls are password related

45. 4-45 Something the User Knows Such As a User ID and Password Identity theft – the forging of someone’s identity for the purpose of fraud Phishing – a technique to gain personal information for the purpose of identity theft, usually by means of fraudulent email

46. 4-46 Smart cards and tokens are more effective than a user ID and a password –Tokens – small electronic devices that change user passwords automatically –Smart card – a device that is around the same size as a credit card, containing embedded technologies that can store information and small amounts of software to perform some limited processing Something the User Knows Such As a User ID and Password

47. 4-47 Something That Is Part Of The User Such As a Fingerprint or Voice Signature This is by far the best and most effective way to manage authentication –Biometrics – the identification of a user based on a physical characteristic, such as a fingerprint, iris, face, voice, or handwriting Unfortunately, this method can be costly and intrusive

48. 4-48 Prevention and Resistance Downtime can cost an organization anywhere from $100 to $1 million per hour Technologies available to help prevent and build resistance to attacks include: 1.Content filtering 2.Encryption 3.Firewalls

49. 4-49 Content Filtering Content filtering - prevents emails containing sensitive information from transmitting and stops spam and viruses from spreading Corporate losses caused by Spam

50. 4-50 Encryption If there is an information security breach and the information was encrypted, the person stealing the information would be unable to read it –Encryption –Public key encryption (PKE)

51. 4-51 Encryption

52. 4-52 Firewalls One of the most common defenses for preventing a security breach is a firewall Firewall – hardware and/or software that guards a private network by analyzing the information leaving and entering the network

53. 4-53 Firewalls Sample firewall architecture connecting systems located in Chicago, New York, and Boston

54. 4-54 Detection and Response If prevention and resistance strategies fail and there is a security breach, an organization can use detection and response technologies to mitigate the damage Antivirus software is the most common type of detection and response technology

55. 4-55 Detection and Response Hacker - people very knowledgeable about computers who use their knowledge to invade other people’s computers –White-hat hacker –Black-hat hacker –Hactivist –Script kiddies or script bunnies –Cracker –Cyberterrorist

56. 4-56 Detection and Response Virus - software written with malicious intent to cause annoyance or damage –Worm –Denial-of-service attack (DoS) –Distributed denial-of-service attack (DDoS) –Trojan-horse virus –Backdoor program –Polymorphic virus and worm

57. 4-57 Detection and Response Security threats to ebusiness include: –Elevation of privilege –Hoaxes –Malicious code –Spoofing –Spyware –Sniffer –Packet tampering

58. 4-58 OPENING CASE QUESTIONS Sarbanes-Oxley 6.What information security dilemmas are being solved by implementing Sarbanes-Oxley? 7.How can Sarbanes-Oxley help protect a company’s information security? 8.What impact does implementing Sarbanes-Oxley have on information security in a small business? 9.What is the biggest information security roadblock for organizations attempting to achieve Sarbanes- Oxley compliance?

59. 4-59 CLOSING CASE ONE Banks Banking on Security 1.What reason would a bank have for not wanting to adopt an online-transfer delay policy? 2.What are the two primary lines of security defense and why are they important to financial institutions? 3.Explain the differences between the types of security offered by the banks in the case

60. 4-60 CLOSING CASE ONE Banks Banking on Security 4.What additional types of security, not mentioned in the case above, would you recommend a bank implement? 5.Identify three policies a bank should implement to help it improve information security 6.Describe monitoring policies along with the best way for a bank to implement monitoring technologies

61. 4-61 CLOSING CASE TWO Hacker Hunters 1.What types of technology could big retailers use to prevent identity thieves from purchasing merchandise? 2.What can organizations do to protect themselves from hackers looking to steal account data? 3.Authorities frequently tap online service providers to track down hackers. Do you think it is ethical for authorities to tap an online service provider and read people’s email? Why or why not?

62. 4-62 CLOSING CASE TWO Hacker Hunters 4.Do you think it was ethical for authorities to use one of the high-ranking officials to trap other gang members? Why or why not? 5.In a team, research the Internet and find the best ways to protect yourself from identity theft

63. 4-63 CLOSING CASE THREE Executive Dilemmas in the Information Age 1.Explain why understanding technology, especially in the areas of security and ethics, is important for a CEO. How do CEO’s actions affect the organizational culture? 2.Identify why executives in nontechnological industries need to worry about technology and its potential business ramifications

64. 4-64 CLOSING CASE THREE Executive Dilemmas in the Information Age 3.Describe why continuously learning about technology allows an executive to better analyze threats and opportunities 4.Identify three things that a CTO, CPO, or CSO could do to prevent the above issues

65. 4-65 BUSINESS DRIVEN BEST SELLERS The Smartest Guys in the Room, by Bethany McLean and Peter Elkind

66. 4-66 BUSINESS DRIVEN BEST SELLERS Career Warfare, by David D’Alessandro

67. 4-67 BUSINESS DRIVEN BEST SELLERS Leadership Sopranos Style: Lessons from a Fictional Mob Boss, by Deborrah Himsel