1. Lesson 2 The Business Landscape Threats to E-Commerce

2. Why E-Commerce?  Fast  Efficient  Anonymous  Lowers labor cots  Lowers capital expenditures (facility, maintenance, upgrades)

3. How large is E-Commerce?  Big business  San Antonio Express:  Nov/Dec 01: $13.8B  Nov/Dev 00: $12B  13% of 2001 Holiday budget  NPR:  Nov/Dec 03: $20B  29% growth over 2002, same period

4. Types of Business on the Internet  Banking  Investing  B2B  Healthcare  Loans/Mortgage

5. Commonly Used Terminology EDI: electronic data interchange…data over proprietary networks VAN: value added networks (same as EDI) Internet: allowed small businesses to compete on even terms with big businesses doing EDI/VAN Intranet: internal network usually supporting back office administrative functions Extranet: external network connecting different businesses…the extension of LANs over Internet

6. Threats to E-Commerce  Internal—the achilles heel  Security breach—countermeasures: screen employees, intrusion detection systems, auditing  Carelessness—countermeasures: training and education, access control  External—the main focus of security  No hard data on true threat as most companies are not forthcoming with information (hurts business  Survey of Fortune 500 Companies  42% reported unauthorized use 32% reported losing upwards of $100M

7. Type of External Threats  Vandalism: WWW defacement  Sabotage: usually orchestrated for some ulterior motive  Breach of Privacy or Confidentially  EMAIL  Phone Calls  Credit Card number  Surfing Habits

8. Type of External Threats(2)  Theft and Fraud, recent events  Moldova ISP modem hijacking via trojan horse software  Russian E-Bay Credit Card Scam  Violations of Data Integrity  Incorrect data can lower E-commerce trust  Ruin investments  Denial of Service (DOS)  Early Virus/Worms  Emergence of Blended Threats

9. E-Commerce Security—Systems Approach  The Key Components:  Client Security – Operating system, Use of active content (Java, Active X)  Secure Transport—Secure Sockets Layer(SSL), Secure HTTP (SHTTP), PKI  Web Server Security—Common Gateway Interface Scripts  Operating System Security—the foundation for all security “The security of the system is only as strong as the weakest link”

10. E-Commerce Security Example Typical WEB SERVER W/Backend Database CLIENT SERVER WEB SERVER DBA SERVER Router FIREWALL Database

11. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router

12. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping

13. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping HARDEN OPERATING SYSTEM

14. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping HARDEN OPERATING SYSTEM RESTRICTED READ/WRITE

15. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping HARDEN OPERATING SYSTEM RESTRICTED READ/WRITE USE STATEFUL INSPECTION

16. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping HARDEN OPERATING SYSTEM RESTRICTED READ/WRITE USE STATEFUL INSPECTION SSH/VPN

17. USE ACL CLIENT SERVER WEB SERVER DBA SERVER Router Enforce Port Mapping HARDEN OPERATING SYSTEM RESTRICTED READ/WRITE USE STATEFUL INSPECTION SSH/VPN Physical Security Security Policies

18. Types of Attacks  Criminal Attacks  Intellectual Property Theft  Identity Theft  Brand Theft  Privacy Violations  DDoS and Dos  Surveillance/Traffic Analysis  Publicity Attacks

19. Criminal Attacks How can I acquire the maximum financial return by attacking the system?”  Fraud: e-check, credit cards, ATM networks  SCAMs: sale of internet services, sale of merchandise, auctions, pyramid and multi-level marketing schemes, business opportunities  Destructive Attacks  Terrorist  Vengeful employees  Hackers

20. Intellectual Property Theft  Trade Secrets  Company Databases  Music ($11B/year)  Software (1997, Business Software Alliance: $15B/year)

21. Other Thefts  Indentity Theft  Credit cards  SSN  Brand Theft  Forged domain name transfer request (SEX.COM)  Page-jacking: web sites steal traffic away from other sites  MCI 1-800-COLLECT and ATT 1-800 C0LLECT

22. Privacy Violations  Targeted attacks---computer security thwarts these  Data Harvesting—works on correlation, automation supports

23. Summary  Benefits of E-Commerce  Common Terminology  Threats to E-Commerce  Key Components of E-Commerce Security  Types of Attacks