8.1 © 2007 by prentice hall 8 chapter securing information systems

8.1 © 2007 by Prentice Hall

88ChapterChapter

Securing Information Securing Information SystemsSystems

Securing Information Securing Information SystemsSystems


LEARNING OBJECTIVES

Management Information SystemsManagement Information SystemsChapter 8 Securing Information SystemsChapter 8 Securing Information Systems

• Analyze why information systems need special protection from destruction, error, and abuse.

• Assess the business value of security and control.

• Design an organizational framework for security and control.

• Evaluate the most important tools and technologies for safeguarding information resources.


Phishing: A Costly New Sport for Internet Users

• Problem: Large number of vulnerable users of online financial services, ease of creating bogus Web sites.

• Solutions: Deploy anti-phishing software and services and a multilevel authentication system to identify threats and reduce phishing attempts.

• Deploying new tools, technologies, and security procedures, along with educating consumers, increases reliability and customer confidence.

• Demonstrates IT’s role in combating cyber crime.

• Illustrates digital technology as part of a multilevel solution as well as its limitations in overcoming discouraged consumers.



Systems Vulnerability and Abuse

• Security

• Policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems

• Controls

• Methods, policies, and organizational procedures that ensure:

• Safety of organization’s assets

• Accuracy and reliability of accounting records

• Operational adherence to management standards




• Why systems are vulnerable

• Electronic data vulnerable to more types of threats than manual data

• Networks

• Potential for unauthorized access, abuse, or fraud is not limited to single location but can occur at any access point in network

• Vulnerabilities exist at each layer and between layers

• E.g. user error, viruses, hackers, radiation, hardware or software failure, theft



Contemporary Security Challenges and VulnerabilitiesContemporary Security Challenges and Vulnerabilities

Figure 8-1

The architecture of a Web-based application typically includes a Web client, a server, and corporate information systems linked to databases. Each of these components presents security challenges and vulnerabilities. Floods, fires, power failures, and other electrical problems can cause disruptions at any point in the network.





• Internet vulnerabilities

• Public network, so open to anyone

• Size of Internet means abuses may have widespread impact

• Fixed IP addresses are fixed target for hackers

• VoIP phone service vulnerable to interception

• E-mail, instant messaging vulnerable to malicious software, interception




• Wireless security challenges

• Many home networks and public hotspots open to anyone, so not secure, communication unencrypted

• LANs using 802.11 standard can be easily penetrated

• Service set identifiers (SSIDs) identify access points in Wi-Fi network and are broadcast multiple times

• WEP (Wired Equivalent Privacy): Initial Wi-Fi security standard not very effective as access point and all users share same password



Wi-Fi Security ChallengesWi-Fi Security Challenges

Figure 8-2

Many Wi-Fi networks can be penetrated easily by intruders using sniffer programs to obtain an address to access the resources of a network without authorization.





• Malicious software (malware)• Computer virus

• Rogue software program that attaches to other programs or data files

• Payload may be relatively benign or highly destructive

• Worm:

• Independent program that copies itself over network

• Viruses and worms spread via:• Downloaded software files

• E-mail attachments

• Infected e-mail messages or instant messages

• Infected disks or machines




• Trojan horse• Software program that appears to be benign but then does

something other than expected

• Does not replicate but often is way for viruses or malicious code to enter computer system

• Spyware • Small programs installed surreptitiously on computers to

monitor user Web surfing activity and serve advertising

• Key loggers• Record and transmit every keystroke on computer

• Steal serial numbers, passwords




• Hacker • Individual who intends to gain unauthorized access to

computer system

• Cybervandalism• Intentional disruption, defacement, or destruction of Web

site or corporate information system

• Spoofing• Misrepresentation, e.g. by using fake e-mail addresses or

redirecting to fake Web site

• Sniffer:• Eavesdropping program that monitors information

traveling over network




• Denial-of-service (DoS) attack:

• Flooding network or Web server with thousands of false

requests so as to crash or slow network

• Distributed denial-of-service (DDoS) attack

• Uses hundreds or thousands of computers to inundate and overwhelm network from many launch points

• Botnet

• Collection of “zombie” PCs infected with malicious software without their owners’ knowledge and used to launch DDoS or perpetrate other crimes



Worldwide Damage from Digital AttacksWorldwide Damage from Digital Attacks

Figure 8-3

This chart shows estimates of the average annual worldwide damage from hacking, malware, and spam since 1999. These data are based on figures from mi2G and the authors.




• Read the Interactive Session: Technology, and then discuss the following questions:

• What is the business impact of botnets?

• What management, organization, and technology factors should be addressed in a plan to prevent botnet attacks?

• How easy would it be for a small business to combat botnet attacks? A large business?

Bot Armies and Network Zombies





• Computer crime

• Computer as target of crime

• Accessing computer without authority

• Breaching confidentiality of protected computerized data

• Computer as instrument of crime

• Theft of trade secrets and unauthorized copying of software or copyrighted intellectual property

• Using e-mail for threats or harassment

• Most economically damaging computer crimes

• DoS attacks and viruses

• Theft of service and disruption of computer systems




• Identity theft• Using key pieces of personal information (social security

numbers, driver’s license numbers, or credit card numbers) to impersonate someone else

• Phishing• Setting up fake Web sites or sending e-mail messages that look

like those of legitimate businesses to ask users for confidential personal data

• Evil twins• Bogus wireless networks used to offer Internet connections,

then to capture passwords or credit card numbers




• Pharming

• Redirecting users to bogus Web page, even when individual types correct address into browser

• Computer Fraud and Abuse Act (1986)

• Makes it illegal to access computer system without authorization

• Click fraud

• Fraudulently clicking on online ad without intention of learning more about advertiser or making purchase

• Cyberterrorism and cyberwarfare:

• At least twenty countries are believed to be developing offensive and defensive cyberwarfare capabilities




• Internal threats: Employees• Company insiders pose serious security problems

• Access to inside information– like security codes and passwords

• May leave little trace

• User lack of knowledge: Single greatest cause of network security breaches• Compromised passwords

• Social engineering

• Errors introduced into software by:• Faulty data entry, misuse of system

• Mistakes in programming, system design




• Software vulnerability

• Software errors are constant threat to information systems

• Cost U.S. economy $59.6 billion each year

• Can enable malware to slip past antivirus defenses

• Patches

• Created by software vendors to update and fix vulnerabilities

• However, maintaining patches on all firm’s devices is time consuming and evolves more slowly than malware



Business Value of Security and Control

• Business value of security and control

• Protection of confidential corporate and personal information

• Value of information assets

• Security breach of large firm results in average loss of 2.1 % of market value

• Legal liability

• Electronic Records Management (ERM)

• Policies, procedures, and tools for managing retention, destruction, and storage of electronic records




• Legal and regulatory requirements for ERM• HIPAA

• Outlines medical security and privacy rules

• Gramm-Leach-Bliley Act• Requires financial institutions to ensure security and

confidentiality of customer data

• Sarbanes-Oxley Act• Imposes responsibility on companies and their

management to safeguard accuracy and integrity of financial information used internally and released externally




• Electronic evidence and computer forensics

• Legal cases today increasingly rely on evidence represented as digital data

• E-mail most common electronic evidence

• Courts impose severe financial, even criminal penalties for improper destruction of electronic documents, failure to produce records, and failure to store records properly




• Computer forensics

• Scientific collection, examination, authentication, preservation, and analysis of data on computer storage media so that it can be used as evidence in a court

• Awareness of computer forensics should be incorporated into firm’s contingency planning process



Establishing a Framework for Security and Control

• ISO 17799• International standards for security and control specifies best

practices in information systems security and control

• Risk Assessment• Determines level of risk to firm if specific activity or process is not

properly controlled• Value of information assets • Points of vulnerability• Likely frequency of problem• Potential for damage

• Once risks are assessed, system builders concentrate on control points with greatest vulnerability and potential for loss





EXPOSURE PROBABILITY OF OCCURRENCE

LOSS RANGE / (AVERAGE)

EXPECTED ANNUAL LOSS

Power failure 30 % $5,000 - $200,000

($102.500)$30,750

Embezzlement 5 % $1,000 - $50,000

($25,500)$1,275

User error 98 % $200 - $40,000

($20,100)$19,698

Online Order Processing Risk AssessmentOnline Order Processing Risk Assessment

Table 8-3


• Security policy• Statements ranking information risks, identifying acceptable

security goals, and identifying mechanisms for achieving these goals

• Chief Security Officer (CSO)• Heads security group in larger firms• Responsible for enforcing security policy

• Security group • Educates and trains users• Keeps management aware of security threats and

breakdowns• Maintains tools chosen to implement security

Technologies and Tools for Security



• Acceptable Use Policy (AUP) • Defines acceptable uses of firm’s information resources and

computing equipment • A good AUP defines acceptable actions for every user and

specifies consequences for noncompliance

• Authorization policies • Determine level of access to information assets for different

levels of users

• Authorization management systems• Allow each user access only to those portions of system that

person is permitted to enter, based on information established by set of access rules




Security Profiles for a Personnel SystemSecurity Profiles for a Personnel System

Figure 8-4These two examples represent two security profiles or data security patterns that might be found in a personnel system. Depending on the security profile, a user would have certain restrictions on access to various systems, locations, or data in an organization.




• Ensuring business continuity

• Fault-tolerant computer systems• Ensure 100% availability

• Utilize redundant hardware, software, power supply components

• Critical for online transaction processing

• High availability computing• Tries to minimize downtime

• Helps firms recover quickly from system crash

• Utilizes backup servers, distributed processing, high capacity storage, disaster recovery and business continuity plans

• Recovery-oriented computing: Designing systems, capabilities, tools that aid in quick recovery, correcting mistakes




• Disaster recovery planning• Restoring computing and communication services after

earthquake, flood, etc.

• Can be outsourced to disaster recovery firms

• Business continuity planning• Restoring business operations after disaster

• Identifies critical business processes and determines how to handle them if systems go down

• Business impact analysis • Use to identify most critical systems and impact system outage

has on business




• Auditing

• MIS audit: Examines firm’s overall security environment as well as controls governing individual information systems

• Security audit: Reviews technologies, procedures, documentation, training, and personnel

• Audits:

• List and rank all control weaknesses

• Estimate probability of occurrence

• Assess financial and organizational impact of each threat




Sample Auditor’s List of Control WeaknessesSample Auditor’s List of Control Weaknesses

Figure 8-5This chart is a sample page from a list of control weaknesses that an auditor might find in a loan system in a local commercial bank. This form helps auditors record and evaluate control weaknesses and shows the results of discussing those weaknesses with management, as well as any corrective actions taken by management.




• Access control• Policies and procedures used to prevent improper access to

systems by unauthorized insiders and outsiders

• Users must be authorized and authenticated

• Authentication: • Typically established by password systems

• New authentication technologies:• Tokens

• Smart cards

• Biometric authentication




• Firewalls:

• Hardware and software controlling flow of incoming and outgoing network traffic

• Prevents unauthorized access

• Screening technologies

• Packet filtering

• Stateful inspection

• Network address translation (NAT)

• Application proxy filtering




A Corporate FirewallA Corporate Firewall

Figure 8-6

The firewall is placed between the firm’s private network and the public Internet or another distrusted network to protect against unauthorized traffic.




• Intrusion detection systems:

• Full-time, real-time monitoring tools

• Placed at most vulnerable points of corporate networks to detect and deter intruders

• Scanning software looks for patterns such as bad passwords, removal of important files, and notifies administrators




• Antivirus software, antispyware software

• Antivirus software:

• Checks computer systems and drives for presence of computer viruses

• To remain effective, antivirus software must be continually updated

• Antispyware software tools:

• Many leading antivirus software vendors include protection against spyware

• Standalone tools available (Ad-Aware, Spybot)




• Securing wireless networks

• WEP: Provides some measure of security if activated

• VPN technology: Can be used by corporations to help security

• 802.11i specification: Tightens security for wireless LANs

• Longer encryption keys that are not static

• Central authentication server

• Mutual authentication

• Wireless security should be accompanied by appropriate policies and procedures for using wireless devices




• Read the Interactive Session: Management, and then discuss the following questions:

• How are Unilever executives’ wireless handhelds related to the company’s business performance?

• Discuss the potential impact of a security breach at Unilever.

• What management, organization, and technology factors had to be addressed in developing security policies and procedures for Unilever’s wireless handhelds?

• Is it a good idea to allow Unilever executives to use both BlackBerrys and cell phones? Why or why not?

Unilever Secures Its Mobile Devices




• Encryption:

• Transforming message into cipher text, using encryption key

• Receiver must decrypt encoded message

• Two main methods for encrypting network traffic

• Secure Sockets Layer (SSL) /Transport Layer Security (TLS)

• Establishes secure connection between two computers

• Secure HTTP (S-HTTP)

• Encrypts individual messages




• Two methods of encryption:

• Symmetric key encryption

• Shared, single encryption key sent to receiver

• Public key encryption

• Two keys, one shared/public and one private

• Messages encrypted with recipient’s public key but can only be decoded with recipient’s private key




Public Key EncryptionPublic Key Encryption

Figure 8-7

A public key encryption system can be viewed as a series of public and private keys that lock data when they are transmitted and unlock the data when they are received. The sender locates the recipient’s public key in a directory and uses it to encrypt a message. The message is sent in encrypted form over the Internet or a private network. When the encrypted message arrives, the recipient uses his or her private key to decrypt the data and read the message.




• Digital signature• Encrypted message that only sender with private key can create

• Used to verify origin and contents of message

• Digital certificates• Data files used to establish identity of users and electronic assets

for protection of online transactions

• Uses trusted third party, certificate authority (CA), to validate user’s identity

• Public Key Infrastructure (PKI)• Use of public key cryptography working with certificate authority




Digital CertificatesDigital Certificates

Figure 8-8

Digital certificates help establish the identity of people or electronic assets. They protect online transactions by providing secure, encrypted, online communication.



8.1 © 2007 by prentice hall 8 chapter securing information systems

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