elc 200 day 22 e-security. awad –electronic commerce 2/e © 2003 prentice hall 2 day 22 agenda...

WWWWWW

ELC 200Day 22

E-Security

2WWWWWW Awad –Electronic Commerce 2/e© 2003 Prentice Hall

Day 22 Agenda

• Quiz 3 Corrected– 14 A’s, 2 B’s and 3 no-takes– Too easy!

• Assignment #7 corrected– 13 A’s, 1 B, 1 C and 3 non-submits– Short discussion on results

• Quiz 4 (last) will be April 29• Chap 13, 14, & 15

• Assignment 8 (next to last) is on next slide – One more, will count best 8 out of 9

• Should be progressing on Framework • Lecture/Discuss E-security


Assignment # 8

• On Page 435

• Answer Discussion Questions 1, 2 & 3– Answers should be well reasoned and explained

in under one page per question (1 page is not enough, more than 3 is too much)

– Turn in a well formatted typed response sheet– Due Tuesday, April 19 at start of class


OBJECTIVES

• Security in Cyberspace

• Conceptualizing Security

• Designing for Security

• How Much Risk Can You Afford?

• Virus – Computer Enemy #1

• Security Protection & Recovery

E-Security: Objectives


ABUSE & FAILURE

• Fraud

• Theft

• Disruption of Service

• Loss of Customer Confidence

E-Security: Security in Cyberspace


WHY INTERNET IS DIFFERENT?

E-Security: Security in Cyberspace

Paper-Based Commerce Electronic Commerce

Signed paper Documents Digital Signature

Person-to-person Electronic via Website

Physical Payment System Electronic Payment System

Merchant-customer Face-to-face Face-to-face Absence

Easy Detectability of modification Difficult Detectability

Easy Negotiability Special Security Protocol


Digital Signature Act (Oct 1, 2000)

• A contract or agreement in interstate or foreign commerce will not be denied legal effect, validity, or enforceability if the contract or agreement is in electronic form and is signed by an electronic signature. Note that the act covers only foreign and interstate commerce. Therefore, where both parties to a contract are in the same state, the law would not seem to apply. However, most states have enacted their own digital signature laws, which cover intrastate transactions.

• The Act permits, but does not require the use of an electronic signature.

• A legal requirement to furnish a record to a consumer in writing can be satisfied by an electronic record, so long as the consumer consents.

• A legal record retention requirement can be satisfied with electronic records.


SECURITY CONCERNS

• Confidentiality

• Authentication

• Integrity

• Access Control

• Non-repudiation

• Firewalls

E-Security: Conceptualizing Security


INFORMATION SECURITY DRIVERS

• Global trading– On-line, real time

• Availability of reliable security packages– Good products…expensive

• Changes in attitudes toward security– Strategic asset



PRIVACY FACTOR


0%

10%

20%

30%

40%

50%

Men Women Ages 18-29

Ages 30-49

Ages 50or older

Incomeless than$40,000

Surfers who agree with the statement: The Internet is a serious threat to privacy


DESIGNING FOR SECURITY

• Adopt a reasonable security policy – Cost effective– Proactive

• Consider web security needs– Data sensitivity

• Design the security environment• Authorizing and monitoring the system

– Accountability– Traceability

E-Security: Designing for Security


ADOPT A REASONABLE SECURITY POLICY

• Policy– Understanding the threats information must be

protected against to ensure• Confidentiality

• Integrity

• Privacy

– Should cover the entire e-commerce system• Internet security practices

• Nature & level of risks

• Procedure of failure recovery



SECURITY PERIMETER

• Firewalls

• Authentication

• Virtual Private Networks (VPN)

• Intrusion Detection Devices



Security Design Process

Consider Web Security NeedsConsider Web Security Needs

Design The SecurityEnvironment

Design The SecurityEnvironment

Police The SecurityPerimeter

Police The SecurityPerimeter

Authorize and MonitorThe Security System

Authorize and MonitorThe Security System

Adopt a Security Policy That Makes Sense

Adopt a Security Policy That Makes Sense


AUTHORIZING & MONITORING SYSTEM

• Monitoring– Capturing processing details for evidence– Verifying e-commerce is operating within

security policy– Verifying attacks have been unsuccessful



Web Logs


HOW MUCH RISK CAN YOU AFFORD?

• Determine specific threats inherent to the system design

• Estimate pain threshold

• Analyze the level of protection required

E-Security: How Much Risk Can You Afford?


KINDS OF THREATS / CRIMES

• Physically-related– Create physical changes

• Order-related– Manipulation of existing orders

• Electronically-related– Sniffers– Spoofers– Script kiddies



Snoop and Sniff


Day 23 Agenda

• Quiz 4 (last) will be April 29• Chap 13, 14, & 15

• Assignment 8 (next to last) is on next slide – Due Tuesday April 19 – One more, will count best 8 out of 9

• Should be progressing on Framework

• Lecture/Discuss E-security


Assignment # 8

• On Page 435

• Answer Discussion Questions 1, 2 & 3– Answers should be well reasoned and explained

in under one page per question (1 page is not enough, more than 3 is too much)

– Turn in a well formatted typed response sheet– Due Tuesday, April 19 at start of class


How Hackers Hack

• Many Techniques– Social Engineering

• Get someone to give you their password

– Cracking• Guessing passwords• A six letter password (no caps)

– > 300 million possibilities• Merriam-Webster's citation files, which were begun in the 1880s, now contain 15.7 million examples of

words used in context and cover all aspects of the English vocabulary. – http://www.m-w.com/help/faq/words_in.htm

– Buffer Overflows• Getting code to run on other PCs

– Load a Trojan or BackDoor– Snoop and Sniff

• Steal data

– Denial of Service (DOS)• Crash or cripple a Computer from another computer

– Distributed Denial of Service (DDOS)• Crash or cripple a Computer from multiple distributed computers


Maine’s Anti-Hacker laws• 432. Criminal invasion of computer privacy

1. A person is guilty of criminal invasion of computer privacy if the person intentionally accesses any computer resource knowing that the person is not authorized to do so. [1989, c. 620 (new).] 2. Criminal invasion of computer privacy is a Class D crime. [1989, c. 620 (new).]

Up to $2000 Fine and one year in jail

• §433. Aggravated criminal invasion of computer privacy 1. A person is guilty of aggravated criminal invasion of computer privacy if the person:

A. Intentionally makes an unauthorized copy of any computer program, computer software or computer information, knowing that the person is not authorized to do so; [1989, c. 620 (new).] B. Intentionally or knowingly damages any computer resource of another person, having no reasonable ground to believe that the person has the right to do so; or [1989, c. 620 (new).] C. Intentionally or knowingly introduces or allows the introduction of a computer virus into any computer resource, having no reasonable ground to believe that the person has the right to do so. [1989, c. 620 (new).][1989, c. 620 (new).]

2. Aggravated criminal invasion of computer privacy is a Class C crime. [1989, c. 620 (new).] Up to $5000 Fine and five years in jail


The Digital Millennium Copyright Act (DMCA, 1998)

• Highlights Generally:– Makes it a crime to circumvent anti-piracy measures built into most commercial

software.– Outlaws the manufacture, sale, or distribution of code-cracking devices used to

illegally copy software.– Does permit the cracking of copyright protection devices, however, to conduct

encryption research, assess product interoperability, and test computer security systems.

– Provides exemptions from anti-circumvention provisions for nonprofit libraries, archives, and educational institutions under certain circumstances.

– In general, limits Internet service providers from copyright infringement liability for simply transmitting information over the Internet.

– Service providers, however, are expected to remove material from users' web sites that appears to constitute copyright infringement.

– Limits liability of nonprofit institutions of higher education -- when they serve as online service providers and under certain circumstances -- for copyright infringement by faculty members or graduate students.

– Requires that "webcasters" pay licensing fees to record companies.


CLIENT COMPUTER SECURITY THREATS

• Why?– Sheer Nuisances– Deliberate Corruption of Files– Rifling Stored Information

• How?– Physical Attack– Virus– Computer-to-computer Attack



SERVER SECURIY THREATS

• Web server with an active port

• Windows 2000 server, not upgraded to act as firewall

• Anonymous FTP service

• Web server directories that can be accessed & indexed



HOW HACKERS ACTIVATE A DISTRIBUTED DENIAL OF SERVICE

ATTACK (DDoS)• Break into less-secured computers connected to a high-

bandwidth network

• Installs stealth program which duplicate itself indefinitely to congest network traffic

• Specifies a target network from a remote location and activates the planted program

• Victim’s network is overwhelmed & users are denied access

• More Info

– http://staff.washington.edu/dittrich/misc/ddos/



Distributed Denial-of-Service Attacks

Distributed DOS (DDoS) Attack:Messages Come from Many Sources

Server

DoS Attack Packets

DoS Attack PacketsComputer with

Zombie

Computer withZombie

Attacker

AttackCommand

AttackCommand


VIRUS – COMPUTER ENEMY #1

• A malicious code replicating itself to cause disruption of the information infrastructure

• Attacks system integrity, circumvent security capabilities & cause adverse operation

• Incorporate into computer networks, files & other executable objects

E-Security: Virus – Computer Enemy #1


How Viruses Work


TYPES OF VIRUSES

• Boot Virus– Attacks boot sectors of the hard drive– Older and rarely seen “in the wild”

• Macro Virus– Exploits macro commands in software application– Big problem with Microsoft software



VIRUS CHARACTERISTICS

• Fast– Easily invade and infect computer hard disk

• Slow– Less likely to detect & destroy

• Stealth– Memory resident – Able to manipulate its execution to disguise its

presence



ANTI-VIRUS STRATEGY

• Establish a set of simple enforceable rules• Educate & train users• Inform users of the existing & potential threats to

the company’s systems• Update the latest anti-virus software periodically• Stay Current on Threats

– http://www.us-cert.gov/current/current_activity.html



BASIC INTERNET SECURITY PRACTICES

• Password– http://www.crackpassword.com/– Alpha-numeric– Mix with upper and lower cases– Change frequently– No dictionary names– Password tutorial

• Encryption– Coding of messages in traffic between the customer placing an

order and the merchant’s network processing the order

• Good Resource– http://www.schneier.com/

E-Security: Security Protection & Recovery


SECURITY RECOVERY

• Attack Detection

• Damage Assessment

• Correction & Recovery

• Corrective Feedback

E-Security: Security Protection & Recovery


FIREWALL & SECURITY

• Firewall– Enforces an access control policy between two

networks– Detects intruders, blocks them from entry,

keeps track what they did & notifies the system administrator

E-Security: Firewall & Security


How Firewalls Work

• Firewall check Packets in and out of Networks– Decide which packets go through and which

don’t– Work in both directions– Only one part of Security


WHAT FIREWALL CAN PROTECT

• Email services known to be problems

• Unauthorized external logins

• Undesirable material, e.g. pornography

• Unauthorized sensitive information



WHAT FIREWALL CAN’T PROTECT

• Attacks without going through the firewall

• Weak security policy

• ‘Traitors’ or disgruntled employees

• Viruses via floppy disks

• Data-driven attack



Cyber Protect

• DOD Training Tool for security

• Scenario– Defend a LAN– 4 Qtr budgets– Spend money wisely

• Real world attack profiles


SPECIFIC FIREWALL FEATURES

• Security Policy

• Deny Capability

• Filtering Ability

• Scalability

• Authentication

• Recognizing Dangerous Services

• Effective Audit Logs



Firewall log