MODULE – 8
Security and Ethical Challenges
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
Business Ethics
• Ethics questions that managers confront
as part of their daily business decision
making include
– Equity
– Rights
– Honesty
– Exercise of corporate power
Categories of Ethical Business
Issues
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
• 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
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
• 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
AITP Standards of Professional Conduct
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
IT Security, Ethics, and Society
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
Computer Crime
Cyber
Hacking
Theft
Computer
Viruses
Unauthorized
Piracy
Use at work
Cyber Crime Safeguards
Hacking
• Hacking is
– 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
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
• Sniffer
– Programs that search individual packets of data as they
pass through the Internet
– Capturing passwords or entire contents
Common Hacking Tactics
• Spoofing - Faking an e-mail address or Web page to trick
users into passing along critical information like passwords or
credit card numbers
• 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
email, or steal passwords
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
• 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
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
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
Internet Abuses in the Workplace
– General email 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
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
Theft of Intellectual Property
• 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
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
– Email and file attachments
– Disks from contaminated computers
– Shareware
Top Five Virus Families of all Time
• My Doom, 2004
– Spread via email and over Kazaa file-sharing network
– Installs a back door on infected computers
– Infected email 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
Top Five Virus Families of all Time
• Netsky, 2004
– Mass-mailing worm that spreads by emailing
itself to all email 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
Top Five Virus Families of all Time
• SoBig, 2004
– Mass-mailing email worm that arrives as
an attachment
• Examples: Movie_0074.mpg.pif, Document003.pif
– Scans all .WAB, .WBX, .HTML, .EML, and
.TXT files looking for email addresses to
which it can send itself
– Also attempts to download updates for itself
Top Five Virus Families of all Time
• Klez, 2002
– A mass-mailing email 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
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
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
Adware and Spyware
• Adware
– 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
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
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
Opt-in Versus Opt-out
• Opt-In
– 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.
Privacy Issues
• Violation of Privacy
– Accessing individuals’ private email 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
• Computer Matching
– Using customer information gained from many sources to
market additional business services
• Unauthorized Access of Personal Files
– Collecting telephone numbers, email addresses, credit card
numbers, and other information to build customer profiles
Protecting Your Privacy on the Internet
• There are multiple ways to protect your
privacy
– Encrypt e-mail
– Send newsgroup postings through
anonymous remailers
– 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
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
Privacy Laws (cont’d)
• 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
Computer Libel and Censorship
• The opposite side of the privacy debate…
– Freedom of information, speech, and press
• Biggest battlegrounds
– Bulletin boards
– Email boxes
– Online files of Internet and public networks
• Weapons used in this battle
– Spamming
– Flame mail
– Libel laws
– Censorship
Computer Libel and Censorship
• Spamming
– Indiscriminate sending of unsolicited email
messages to many Internet users
• Flaming
– Sending extremely critical, derogatory, and
often vulgar email messages or newsgroup
posting to other users on the Internet or
online services
– Especially prevalent on special-interest
newsgroups
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
• 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
Other Challenges
• Employment
– 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
Other Challenges
• Working Conditions
– 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
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
Ergonomics
• Designing healthy work environments
– Safe, comfortable, and pleasant for people to
work in
– Increases employee morale and productivity
– Also called human factors engineering
Ergonomics Factors
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
Societal Solutions
• The detrimental effects of
information technology
– Often caused by individuals
or organizations not
accepting ethical
responsibility for
their actions
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
Security Management
• The goal of security
management is the
accuracy, integrity,
and safety of all
information system
processes and resources
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
Public/Private Key Encryption
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
Internet and Intranet Firewalls
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
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
Internetworked Security Defenses
• Email 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
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
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
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
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
Information System Controls
• Methods and devices that attempt to ensure the
accuracy, validity, and propriety of information
system activities
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
Protecting Yourself from Cybercrime
