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COMPUTERS,COMMUNICATIONS

AND CORRUPTION

Slides for a seminar discussion © Denis Osborne, 2006

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WHY THE INTEREST?

INFORMATION TECHNOLOGIES BRING:• UNFAMILIAR DEMANDS on managers• OPPORTUNITIES to inform or to control• RISKS from thieves, ‘hackers’, ‘wreckers’• CONCERNS about ethics

– Freedom of information?– Surveillance? False information?– The Poor deprived, having no computer access

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WHAT’S THE DIFFERENCE?

COMPUTERS PROCESS INFORMATION

Information and its processing

differ in many ways from energy,

other physical resources and activities

to provide manufactured goods

and transport

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2nd INDUSTRIAL REVOLUTION

TRADITIONAL MACHINES GIVE US MORE MUSCLE

TO BUILD, MAKE AND MOVE

COMPUTERS GIVE US MORE BRAINTO COMMUNICATE,

CALCULATE AND INFORM

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DIFFERENT CHARACTERISTICS Slides 5 and 6 may be omitted if covered in a session on managers

Energy, Manufactures• When used, energy

and physical products get ‘used up’, lost

• We want more– more fuel– more food

• The need is quantity• Bigger is cheaper

Information• When used, information

is multiplied but may be distorted

• We get too much– information overload– finding what we want

• The need is quality• Smaller is faster

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CONCERNS OF MANAGERS C19 Physical Products • High volume sales• Secure supplies• Focus on inputs,

suppliers• Big plants near

resources• Cheap in-house labour• Management pyramid

workers less educated

C21 Information Processes• High value added• Sales, design, marketing• Focus on outputs,

customers• Small plants near

markets • Clever team, contractors• Management network

workers well educated

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OPPORTUNITIES

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TO INFORM

• Communications allow us to inform, – many people, in many places, at low cost

• And to listen, survey, get feedback, consult• The Internet allows state to inform citizens

– about laws and policies– about progress with applications, decisions

• And to introduce direct democracy, if wanted

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TO CALCULATE

• Computers give managers tools• to analyse costs and spending

– make possible cost-accounting, output budgets

• to monitor unusual events– transfers in bank accounts

• to handle vast volumes of data– find key words in telephone taps– identify key people on video tape

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TO HOLD ACCOUNTABLE

• Computers facilitate accountability– through surveillance (exception reporting) – through routine procedures– through random procedures

• To line management• To customers• To the public

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TO MONITOR

• Street surveillance• Video film as evidence

– objections from traditionalists – not in law– objections from technocrats – editing

• Records of purchases• Records of internet access, etc

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TO CONTROL?• EITHER• Information gives THEM power to control

– Power focused in strong governments

and multinationals

• OR• Information leaks; nothing ‘sacred’ or secret

– Power lies with small closed groups

and terrorists

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RISKS …

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‘IT’ BRINGS RISKS. WHY ?

Think About Crime ‘Against’ Computers• Remote access; impersonal

– criminal feels safe, does not see victim• High speed processing

– criminal can steal much information in short time• Public acceptability

– computer crime is clever, fun; unlike theft – the victim feels no threat to their person – individual is beating the organisation

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ALSO …• Detection of ‘computer crime’ is difficult

– If I steal information my victim loses nothing!

• Prosecution is unlikely, Punishment slight– Laws are vague, unenforceable, police lack skills– Penalties less than for theft, mugging

• Opportunities for crime enormous– Global range, 24-hour access

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WHO POSES THE THREAT ?

People, but with what Motives?• Espionage (commercial, political …)

– theft of data, – copying data, unknown to victim

• Personal benefit– distortion of data (such as tax liability)

• Grievance, Mischief, Revenge (or fun!)– damage to system or data, or both

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WHAT RISKS?From• Theft, Virus, Hacker, Damage, BreakdownInvolving the• HARDWARE for data storage and processing• COMMUNICATIONS Links• SOFTWARE Programmes• DATA (Information)• PEOPLE

– irresponsible, stressed …

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WHAT CONSEQUENCES ?• Denial of data to computer user:

– access blocked (also from theft of equipment)• Distortion of data or programmes:

– for example, of balance in bank account• Disclosure of data (data stolen):

– competitor gains information;– student reads exam papers

• Destruction of data:– retrieval impossible

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ACTIONS

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A RISK ASSESSMENT

• What are the assets (equipment, information)?• What are the threats?• What is estimated probability of an ‘attack’?• What would be the consequences?• What can be done and what would it cost

– to detect an attack?– to prevent it, or minimise its effects?– to recover from an attack?– Is prevention worth the cost?

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PROTECTING OUR SYSTEMS

• Alert staff to security threats and issues• Control physical access to system• Control password access to different levels• Keep back-up data off site• Train staff to back up data regularly• Warn about virus risks, use updated checks• Enforce penalties for importing software• Review and monitor procedures

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ETHICS

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PROTECT CITIZENS • Citizens should be able to correct information

– if records held about them are wrong– requiring enforcement of a ‘Data Protection Act’

• Citizens need protection against– ‘unfair’ advertising, untrue propaganda– pornography when they do not want it– incitement to race hatred or crime– abuse of power by Government, business …– misuse of data held by Government, others ….

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PROTECT GOVERNANCE

• Governments need power to manage well– to keep and use records about citizens– to avoid excess bureaucracy computers can bring – to assess risks from new technologies– to protect the ‘information environment’

• Courts need – to use evidence from ‘new’ technology– to be competent in IT and fraud cases, etc