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IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall 8/28/2012 10-1 Accessories for “war driving” can be easily built using simple parts. Chapter 10 Securing Information Systems

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IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012

10-1

Accessories for “war driving” can be easily built usingsimple parts.

Chapter 10Securing Information Systems

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IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012

Learning Objectives10-2

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012

Learning Objectives10-3

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012

Primary Threats to Information Systems Security

10-4

Natural disasters Power outages, hurricanes,

floods, and so on

Accidents Power outages, cats walking

across keyboards

Employees and consultants

Links to outside business contacts Travel between business

affiliates

Outsiders Viruses

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Computer Crime

Computer crime—The act of using a computer to commit an illegal act. Targeting a computer while committing an offense.

Using a computer to commit an offense.

Using computers to support a criminal activity.

Overall trend for computer crime has been declining over the past several years (CSI, 2009).

Many incidents are never reported.

10-5

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Computer Virus Attacks

Financial impact of virus attacks, 1995–2006, and beyond.

Source: Based on: http://www.computereconomics.com.

10-6

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Federal and State Laws

The two main federal laws against computer crime are: Computer Fraud and Abuse Act of 1986

Stealing or compromising data about national defense, foreign relations, atomic energy, or other restricted information

Violating data belonging to banks or other financial institutions

Intercepting or otherwise intruding on communications between states or foreign countries

Threatening to damage computer systems in order to extort money or other valuables from persons, businesses, or institutions

Electronic Communications Privacy Act of 1986 makes it a crime to break into any electronic communications

service, including telephone services

prohibits the interception of any type of electronic communications

10-7

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Other Federal Laws

Patent protection

U.S. Copyright Act amended in 1980 for computer software

Financial Privacy Act protects information: credit card, credit reporting , bank loan

applications

Enforcement responsibilities FBI—espionage, terrorism, banking, organized crime, and

threats to national security

Secret Service—crimes against U.S. Treasury Department computers and against violations of the Right to Financial Privacy Act

10-8

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Hacking and Cracking

Hackers—individuals who are knowledgeable enough to gain access to computer systems without authorization. Term first used in the 1960s at MIT

Often the motivation is curiosity, not crime

Crackers—those who break into computer systems with the intention of doing damage or committing a crime.

Hacktivists—Those who attempt to break into systems or deface Web sites to promote political or ideological goals

10-9

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Types of Criminals10-10

No clear profile as to who commits computer crimes

Four groups of computer criminals1. Current or former employees

85–95% of theft from businesses comes from the inside

2. People with technical knowledge committing crimes for personal gain

3. Career criminals using computers to assist them in crimes

4. Outside crackers hoping to find information of value About 12 percent of cracker attacks cause damage

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Unauthorized Access10-11

Examples Employees do personal business on

company computers. Intruders break into government Web

sites and change the information displayed.

Thieves steal credit card numbers and Social Security numbers from electronic databases, then use the stolen information to charge thousands of dollars in merchandise to victims.

An employee at a Swiss bank steals data that could possibly help to charge the bank’s customers for tax evasion, hoping to sell this data to other countries’ governments for hefty sums of money.

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Information Modification10-12

User accesses electronic information.

User changes information. Employee gives

herself a raise.

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Other Threats to IS Security

Many times, computer security is breached simply because organizations and individuals do not exercise proper care in safeguarding information.

Examples: Keeping passwords or access codes in plain sight

Failing to install antivirus software or keep up-to-date

Continue to use default network passwords

Careless about letting outsiders view computer monitors

Failure to limit access to company files and system resources

Failure to install effective firewalls or intrusion detection systems, or they install but fail to monitor them regularly

Failure to provide proper employee background checks

Unmonitored employees

Disgruntled workers

10-13

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Computer Viruses and Other Destructive Code10-14

Malware—short for “malicious software” such as viruses, worms, and Trojan horses.

Virus—a destructive program that disrupts the normal functioning of computer software.

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Worms, Trojan Horses, and Other Malware

Worm

variation of a virus that is targeted at networks, taking advantage of security holes

Trojan Horse

Does not replicate, but causes damage. Codes are hidden.

Logic bombs or time bombs

Variations of Trojan horses

Time bombs are set off by specific dates; logic bombs are set off by certain types of operations.

10-15

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Denial of Service Attack10-16

Attackers prevent legitimate users from accessing services.

Zombie computers Created by viruses or

worms

Attack Web sites

Servers crash under increased load. MyDoom attack on

Microsoft’s Web site

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Spyware10-17

Hidden within freeware or shareware, or embedded within Web sites

Gathers information about a user Credit card information Behavior tracking for marketing purposes

Eats up computer’s memory and network bandwidth

Adware Free software paid by advertisements Sometimes contains spyware Collects information for banner ad customization

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Spam10-18

Electronic junk mail Advertisements of

products and services Eats up storage space Compromises network

bandwidth 90 percent of all

Internet e-mail is spam!

Spam filters can help. Spim—spam in text

message form

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Phishing (Spoofing)

Attempts to trick users into giving away credit card numbers

Phony messages

Duplicates of legitimate Web sites

Examples: eBay, PayPal have been used.

10-19

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CAPTCHA10-20

Completely Automated Public Turing Test to Tell Computers and Humans Apart (CAPTCHA)

CAPTCHA uses images that computers cannot read.

Combination of techniques is needed to stop spammers.

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Cookies10-21

Cookies are messages passed to a Web browser from a Web server.

They are stored in a text file. They are used for Web site customization. Cookies may contain sensitive information. Managing cookies

Cookie killer software Web browser settings

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Cyberattack Supply Chain

85 percent of all e-mail spam is sent out by only six major botnets.

Sample phishing attack: A programmer writes and sells a phishing attack template.

A phisher who wants to run an attack purchases the template and designs an attack.

The phisher contracts with a cracker to provide hosting space for the phishing Web sites.

The phisher contacts a bot herder to send out the spam e-mail that carries the attack.

The phisher provides the stolen personal information to a collector who removes funds from the affected financial institutions.

The collector works with a criminal called a mule herder who carries out the withdrawals.

10-22

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Identity Theft10-23

Fastest growing “information crime”

Stealing another person’s: Credit card number

Social Security number

Other personal information

Results in bad credit for victim

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Internet Hoaxes10-24

False messages circulated online New viruses (that don’t exist)

Collection of funds for certain group Example: Haiti earthquake victims

Possible consequences Spammers harvesting e-mail addresses from hoaxes

Web sites, such as Hoaxbusters (www.hoaxbusters.org), Symantec, or McAfee, publish lists of known hoaxes.

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Cybersquatting10-25

The practice of registering a domain name and later reselling it.

Some of the victims include: Eminem Panasonic Hertz Avon

Anti-Cybersquatting Consumer Protection Act in 1999 Fines as high as $100,000 Some companies pay the cybersquatters to speed up the process

of getting the domain.

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Cyber Harassment, Stalking, and Bullying10-26

Cyber harassment—Crime that broadly refers to the use of a computer to communicate obscene, vulgar, or threatening content.

Cyber stalking Making false accusations that damage reputation of another

Gaining information on a victim by monitoring online activities

Using the Internet to encourage others to harass a victim

Attacking data and equipment of a victim by sending e-mail viruses or other destructive code

Using the Internet to place false orders for goods or services

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Cyber Bullying10-27

Cyber bullying is the deliberate cause of emotional distress to a victim

Online predator Typically target vulnerable population for sexual or financial

purposes

Social networking sites have become the playground for online predators.

Most social networking and chat sites provide ways to report abuse.

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Software Piracy

Legal activities Making one backup copy for personal use Sharing free software (shareware or public domain

software) Illegal activities Making copies of purchased software for others Offering stolen proprietary software (warez peddling)

Intellectual property Patents: process or machine inventions Copyrights: creations of the mind Various copyright laws applicable to software

10-28

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Software Piracy Is a Global Business

Worldwide losses exceeded $53 billion in 2008

Some factors influencing piracy around the world Concept of intellectual property differs between countries

Economic reasons for piracy

Lack of public awareness about the issue

10-29

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Learning Objectives10-30

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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Cyberwar

Cyberware—Military’s attempt to disrupt or destroy another country’s information and communication systemsGoal is to diminish opponent’s communication capabilities.

It is used in concert with traditional methods.

10-31

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Cyberwar Vulnerabilities

Systems at risk: Command and control systems

Intelligence collection and distribution systems

Information processing and distribution systems

Tactical communication systems and methods

Troop and weapon positioning systems

Friend-or-foe identification systems

Smart weapons systems

Propaganda Web vandalism

Cyber propaganda

10-32

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The New Cold War10-33

A 2007 McAfee report on Internet security listed a cyber cold war as an imminent threat.

Reminiscent of the Cold War between the United States and the Soviet Union from the mid-1940s until the early 1990s —intelligence agencies are testing networks for possible weaknesses.

Patriot Hackers—independent

citizens that attack perceived

enemies of the state.

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Cyberterrorism10-34

Governments are not involved.

Attacks can be launched from anywhere in the world.

Goal is to cause fear, panic, and destruction.

Cyberterrorism will likely become weapon of choice.

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Categories of Potential Cyberterrorist Attacks10-35

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Use of Internet in Terrorist Attacks10-36

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Assessing the Cyberterrorism Threat10-37

Internet infrastructure is extremely vulnerable to cyberterrorism. Some successful attacks

1991—Gulf War Dutch crackers stole information about the movement of U.S. troops

and offered it for sale to Iraq. The Iraqis turned down the offer.

2000—U.S. presidential elections Web sites were targeted by crackers with political motives. DoS attacks launched.

2007—Government and bank networks within Estonia came under attack for the removal of a Soviet-era memorial.

2010—Chinese-based hackers attacked Google who threatened to remove Chinese filter searches from the search engine.

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Obstacles to Cyberterrorism10-38

1. Computer systems are complex and attacks may not have desired outcome.

2. Security measures are fast-changing.

3. Cyberattacks rarely cause physical harm to victims.

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The Globalization of Terrorism10-39

Increasing dependence on technology Increasing possibilities of cyberterrorism International laws and treaties must evolve. However: likelihood of large attacks is small. Successful large attack would require:

Intelligence information Years of preparation At least $200 million

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Learning Objectives10-40

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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Information Systems Security10-41

All systems connected to a network are at risk. Internal threats

External threats

Information systems security Precautions to keep IS safe from unauthorized access and

use

Increased need for good computer security with increased use of the Internet

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Safeguarding Information Systems Resources10-42

Information systems audits Risk analysis

Process of assessing the value of protected assets Cost of loss vs. cost of protection

Risk reduction Measures taken to protect the system

Risk acceptance Measures taken to absorb the damages

Risk transfer Transferring the absorption of risk to a third party

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Technological Safeguards

Physical access restrictions

Firewalls

Encryption

Virus Monitoring and prevention

Audit-control software

Dedicated facilities

10-43

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Technological Safeguards

Physical access restrictions Authentication

Use of passwords

Photo ID cards, smart cards

Keys to unlock a computer

Combination

Authentication dependent on Something you have

Something you know

Something you are

10-44

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Biometrics10-45

Form of authentication Fingerprints

Retinal patterns

Facial features and so on

Fast authentication

High security

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Access-Control Software10-46

Access only to files required for work

Restriction of access level Read only, modify, delete

Certain time periods for allowed access

Business systems applications Built-in access control capabilities

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Wireless LAN Control10-47

Wireless LAN cheap and easy to install

Use on the rise

Signal transmitted through the air Susceptible to being

intercepted

Drive-by hacking

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Virtual Private Networks10-48

Connection constructed dynamically within an existing network

Tunneling Send private data over

public network

Encrypted information

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Firewalls10-49

Firewall—A system designed to detect intrusion and prevent unauthorized access

Implementation Hardware, software, mixed

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Encryption10-50

Message encoded before sending Message decoded when received

Cryptography—the science of encryption. It requires use of a key for decoding.

Certificate authority—manages distribution of keys on a busy Web site.

Secure Sockets Layer (SSL)—popular public key encryption method.

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Virus Monitoring and Prevention10-51

Virus prevention Purchase and install antivirus software.

Update frequently.

Do not download data from unknown sources. Flash drives, disks, Web sites

Delete (without opening) e-mails from unknown sources.

Do not blindly open e-mail attachments Even if they come from a known source.

Report any viruses to the IT department.

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Audit-Control Software10-52

Keeps track of computer activity

Spots suspicious action

Audit trail Record of users

Record of activities

IT department needs to monitor this activity.

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Secure Data Centers10-53

Specialized facilities are important.

Technical Requirements Power

Cooling

How do organizations reliably protect themselves from threats?

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Ensuring Availability10-54

High-availability facilities To ensure uninterrupted

service

Self-sufficient

Backup cooling systems

Raised floors (to more easily reconfigure systems)

Built to withstand storms

Collocation facilities

UPS servers need 24/7/365 reliability

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Securing the Facilities Infrastructure10-55

Backups Secondary storage devices Regular intervals

Backup sites Cold backup site Hot backup site

Redundant data centers Different geographic areas

Closed-circuit television (CCTV) Monitoring for physical intruders Video cameras display and record all activity Digital video recording

Uninterruptible power supply (UPS) Protection against power surges

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Human Safeguards10-56

Use of federal and state laws as well as ethics

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Computer Forensics

10-57

Use of formal investigative techniques to evaluate digital information Evaluation of storage devices for traces of illegal activity

Now common in murder cases

Restoration of deleted files

Honeypots used to entice and catch hackers and crackers Example: DarkMarket

Some criminals have special “booby-trap” programs to destroy evidence.

10-57

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Learning Objectives10-58

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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Managing Information Systems Security10-59

Non-technical safeguards Management of

people’s use of IS Acceptable use policies

Trustworthy employees

Well-treated employees

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Developing an Information Systems Security Plan10-60

Ongoing five-step process

1. Risk analysisa. Determine value of electronic information.

b. Assess threats to confidentiality, integrity, and availability of information.

c. Identify most vulnerable computer operations.

d. Assess current security policies.

e. Recommend changes to existing practices to improve computer security.

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Security Plan: Step 210-61

2. Policies and procedures—actions to be taken if security is breached

a. Information Policy—handling of sensitive information.

b. Security Policy—technical controls on organizational computers.

c. Use Policy—appropriate use of in-house IS.

d. Backup Policy—explains backup requirements.

e. Account Management Policy—procedures for adding new users and removing user accounts.

f. Incident Handling Procedures—handling security breach.

g. Disaster Recovery Plan—restoration of computer operations.

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Security Plan: Remaining Steps10-62

3. Implementationa. Implementation of network security hardware and

software

b. IDs and smart cards dissemination

c. Responsibilities of the IS department

4. Training—organization’s personnel

5. Auditinga. Assessment of policy adherence

b. Penetration tests

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Disaster Planning

Disasters can’t be completely avoided. Need to be prepared.

Business continuity plan describes how a business resumes operation after a disaster

Disaster recovery plan Subset of business continuity plan

Procedures for recovering from systems-related disasters Two types of objectives

Recovery time objectives (Maximum time allowed to recover) Recovery point objectives (How current should the backup

material be?)

10-63

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Questions Addressed by Recovery Plan

What events are considered a disaster?

What should be done to prepare the backup site?

What is the chain of command, and who can declare a disaster?

What hardware and software are needed to recover from a disaster?

Which personnel are needed for staffing the backup sites?

What is the sequence for moving back to the original location after recovery?

Which provider can be drawn on to aid in the disaster recovery process?

10-64

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Responding to a Security Breach10-65

Restore lost data.

Perform new risk audit.

Implement additional safeguards.

Contact law enforcement. Computer Emergency Response Team Coordination Center

(Federal government center of Internet security expertise)

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The State of Systems Security Management10-66

CSI Computer Crime and Security Survey (2009) findings: Financial losses of cybercrime are decreasing. Financial fraud attacks result in the greatest financial

losses. Only about 29 percent of organizations report intrusions to

the law enforcement. Fear of falling stock prices

Most organizations do not outsource security activities. Nearly all organizations conduct routine security audits. Most organizations agree security training is important.

Majority said they do not do enough training.

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Use of Security Technologies10-67

CSI Computer Crime and Security Survey (2009) find that most organizations use the following security measures: Activity logging and intrusion detection

Antivirus and antispyware software

Firewalls and VPNs

Encryption for data in transit and at rest

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Learning Objectives10-68

1. Define computer crime and describe several types of computer crime.

2. Describe and explain the differences between cyberwar and cyberterrorism.

3. Explain what is meant by the term “IS security” and describe both technology and human-based safeguards for information systems.

4. Discuss how to better manage IS security and explain the process of developing an IS security plan.

5. Describe how organizations can establish IS controls to better ensure IS security.

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IS Controls, Auditing, and Sarbanes-Oxley Act10-69

Information Systems control specific IT processes designed to ensure reliability of informationControls should be a combination of three

types: Preventive controls Detective controlsCorrective controls

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Hierarchy of IS Controls10-70

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Types of IS Controls10-71

Policies Define aim and objectives.

Standards Support the requirements of policies.

Organization and management Define the lines of reporting.

Physical and environmental controls Protect the organization’s IS assets.

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Types of IS Controls (cont’d)10-72

Systems software controls Enable applications and users to utilize the systems.

Systems development and acquisition controls Ensure systems meet the organization’s needs.

Application-based controls Ensures correct input, processing, storage, and output of data; maintain

record of data as it moves through the system.

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IS Auditing10-73

Information Systems audit Performed by external auditors to help organizations assess the state

of their IS controls. To determine necessary changes

To assure the IS availability, confidentiality, and integrity

Risk assessment Determine what type of risks the IS infrastructure faces.

Computer-Assisted Auditing Tools (CAAT) Specific software to test applications and data, using test data or

simulations.

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The Sarbanes-Oxley Act10-74

The Sarbanes-Oxley Act was formed as a reaction to large-scale accounting scandals. WorldCom, Enron

It primarily addresses the accounting side of organizations.

Companies have to demonstrate that: controls are in place to prevent misuse and fraud,

controls are in place to detect potential problems, and

measures are in place to correct problems

COBIT (Control Objectives for Information and Related Technology) Set of best practices

Help organizations to maximize the benefits from their IS infrastructure

Establish appropriate controls

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End of Chapter Content10-75

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Managing in the Digital World: Drive-by Hacking10-76

60–80 percent of corporate wireless networks do not use adequate security.

“War driving”—a new hacker tactic

“War spamming” Attackers link to an e-mail

server and send out millions of spam messages.

Businesses fight back using bogus access points.

Network scanners distinguish between real and fake Apps.

Fast Packet Keying—to fix shortcomings of Wired Equivalent Privacy (WEP)

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ETHICAL DILEMMA

Ethical Hacking10-77

Mark Maiffret He started as a hacker.

He now designs and sells software for companies to secure their networks against hackers.

eEye Digital Security Maiffret—Chief Hacking Officer.

Software prevents unauthorized access.

Don’t hire anyone with a criminal record—“good” hackers don’t get caught.

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NET STATS

Top Cyber Threats

In 1988, Robert Morris’s worm (actually, a bug) crashed 6,000 computers.

According to Kaspersky Lab, for 2010 and beyond they expect to see an increase in the following: File sharing network attacks Use of botnet services Fake antivirus programs More sophisticate malware Web services attacks Popular mobile handsets attacks Social networking site attacks Third-party software attacks

10-78

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Hacking an Airplane10-79

Aircraft use more and more information technologies. For example, Boeing’s 787 Dreamliner has various onboard

networks. Network for providing in-flight Internet access is connected to

control, navigation, and communication systems.

Passengers could possibly access flight controls.

IT experts urge Boeing to separate flight controls and passenger systems.

“This is serious.”

In early 2010, the FAA issued a “special conditions alert” specifically aimed at Boeing 747-8/-8F.

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COMING ATTRACTIONS

What Were You Thinking?

Some advertisements are considered too raunchy. When this happens, swift and decisive consumer backlash

results in the advertiser pulling the ad.

Emsense, a San Francisco-based company, has developed a headset for tracking brain activity. The headset uses algorithms that translate physiological data

into information about emotions.

Other applications: Toshiba, Neurosky, University of Maryland.

10-80

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POWERFUL PARTNERSHIPS

Netscape’s James H. Clark and Marc Andreessen10-81

World Wide Web came into existence in 1993

1994—James H. Clark and Marc Andreessen founded Mosaic Communications Corporation (and Netscape browser)

Clark—PhD in computer science from University of Utah

Andreessen—Bachelors in computer science from University of Illinois in Urbana-Champaign

Made Netscape free

Competition with Microsoft

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WHEN THINGS GO WRONG

Backhoe Cyberthreat10-82

Telecommunications infrastructure is vulnerable. Telephone lines, fiber-optic cables, water lines, gas pipelines

have been accidentally damaged. 675,000 incidents reported in 1 year

Underwater cables are frequently cut by accident. Cable cuts happen on average once every three days. Infrastructure information is publicly available. Most of Internet communication goes through cables buried

along major highways and railroads. Only two major routes across United States is for Internet traffic.

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INDUSTRY ANALYSIS

Cybercops Track Cybercriminals10-83

Federal level Computer Crime and Intellectual Property Section Computer and telecommunications crime coordinator

Assistant U.S. attorney —every federal judicial district has at least one

State level Crime investigation unit

FBI Computer crime squads in 16 metropolitan areas National Infrastructure Protection Center

Available software Software Forensic Tool Kit Statewide Network and Agency Photos (SNAP) Automatic Fingerprint Identification System Classification System for Serial Criminal Patterns

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall