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Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-1 MANAGING INFORMATION TECHNOLOGY 7 th EDITION CHAPTER 14 INFORMATION SECURITY Slide 2 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-2 INFORMATION SECURITY Background -Organizations face both internal and external security threats -Growth in online transactions and usage of external networks has increased the demands for information security - Traditional security measures include technical solutions - Managerial measures will be a key focus of this chapter Slide 3 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-3 COMPUTER CRIME (E-CRIME) A crime that involves a computer or a network Some crimes directly target computer or networks; other crimes use computer or networks to commit a crime Computer crimes can involve a single computer or thousands of computers Due to increased Internet connectivity, cyber attacks have greatly increased over the past decade Slide 4 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-4 COMPUTER CRIMES BY EXTERNAL ATTACKERS. Virus: a small unit of code that invades a computer program or file. When the invaded program is executed or the file is opened, the virus makes copies of itself that are released to invade other programs or files in that computer. It may also do nasty things like erase files or corrupt programs. Viruses are transmitted from one computer to another when an invaded computer program or files is transmitted to another computer. Example: ILOVEYOU May 2000. Written in Visual Basic script; transmitted as an attachment to an e-mail with the subject line ILOVEYOU. Estimated damage: $10-15 billion Worm: a virus that has the ability to copy itself from machine to machine, normally over a network Example: Sobig.F August 2003. Spread via email attachments; sent massive amounts of email with forged sender information; deactivated itself Sept. 10, 2003. Estimated damage: $5-10 billion Trojan Horse: a security-breaking program that is introduced into a computer and serves as a way for an intruder to re-enter the computer in the future. Like the huge wooden horse used by the Greeks to trick the Trojans into opening their city gates to let in the horse, it may be disguised as something innocent such as an electronic greeting card, screen saver or game. Logic Bomb: a program introduced into a computer that is designed to take action at a certain time or when a specific event occurs. Denial of Service Attack: a large number of computers on the Internet simultaneously send repeated messages to a target computer, resulting in the computer being overloaded or the communications lines are jammed so that legitimate users cannot obtain access. FIGURE 14.1 Common Techniques Used by External Attackers Slide 5 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-5 NEWER SOCIAL ENGINEERING TECHNIQUES Phishing The solicitation of sensitive personal information from users, commonly in the form of email and instant messages Spoofing The use of a fraudulent Web site that mimics a legitimate one; often used in conjunction with phishing Slide 6 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-6 COMPUTER CRIMES BY INSIDERS Typical crimes by current employees, recent employees, and business partners: Gaining unauthorized access to information, systems, and/or networks Theft of intellectual property rights, trade secrets, and/or research and development knowledge Data breaches by an organizations business partners Slide 7 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-7 SECURITY TECHNIQUES BY OSI LAYER Layer #1: Perimeter Layer (web servers, mail servers, etc.) Firewalls VPN encryption Network-based Anti-virus Pros: lots of vendor solutions, easy to implement Cons: hackers can easily penetrate it Layer #2: Network (LAN/WAN) Intrusion detection systems (IDS) Vulnerability management systems Network access control User control/Authentication Pros: solutions provide deep security not easy to breach and regular monitoring Cons: IDS tend to report false alarms; some solutions better for specific network devices rather than network as a whole Layer #3: Host Security (individual computer, server, router, etc.) Host IDS Host Anti-Virus Pros: solutions provide good operational protection at device level Cons: time-consuming to deploy as are fine-tuned for individual devices Layer #4: Application Public Key Interface (PKI) RSA Access Control/Authentication Pros: encryption provides robust security Cons: overhead results in slower system response Level #5: Data EncryptionPros: solutions provide good security Cons: Dependent on good organizational policies and good execution by data steward Figure 14.2 Slide 8 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-8 THE CHIEF SECURITY OFFICER ROLE CSO Role The CSO is responsible for continually assessing an organizations information security risks and for developing and implementing effective countermeasures Key Tasks: - Identify and prioritize relevant risks - Eliminate essentially avoidable risks with reasonable investments - Mitigate other risks to an appropriate point of diminished returns on security investments Slide 9 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-9 THE CHIEF SECURITY OFFICER ROLE Since it is impossible to eliminate all risk, the CSO must balance the trade-offs between risks and the costs of minimizing them Risk Costs to Minimize Slide 10 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-10 INFORMATION RISK MANAGEMENT Risk Management Steps -Determine the organizations information assets & their values - Determine length of time the organization can function without a given information asset - Develop and implement security procedures to protect the assets Example for a specific organization: - Corporate information on employee laptops is an important asset - Loss of the information on a laptop averages $50,000 Slide 11 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-11 INFORMATION RISK MANAGEMENT The expected losses due to a vulnerability can be calculated by the following formula: Annualized Expected Losses (AEL) Single Loss Expectancy (SLE) Annual Occurrence Rate (AOR) Slide 12 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-12 INFORMATION RISK MANAGEMENT Example continued: - Loss of the information on a laptop averages $50,000 - Company identifies three occurrences in the last two years where a laptop had been lost: Annual Occurrence Rate = 1.5 Annualized Expected Losses (AEL) Single Loss Expectancy (SLE) Annual Occurrence Rate (AOR) $75,000$50,0001.5 Slide 13 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-13 INFORMATION RISK MANAGEMENT Managers estimate the costs of the actions performed to secure valued information assets Cost estimates and Annualized Expected Losses (AEL) are then used to perform security cost-benefit analysis The Return Benefit is estimated as follows: Security Cost-Benefit Analysis: Quantitative analysis to calculate the potential business benefits and the intervention costs involved with mitigating security risks Return Benefit Annualized Expected Losses (AEL) Annualized Cost of Actions Slide 14 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-14 INFORMATION RISK MANAGEMENT Example continued: -Company estimates that adding strong encryption to the corporate data on the laptops will cost $100 per year for each of the 200 laptops in the company = $20,000 annualized cost for this intervention - Return Benefit for this action = $55,000 Return Benefit Annualized Expected Losses (AEL) Annualized Cost of Actions $55,000$75,000$20,000 Slide 15 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-15 RECENT INFORMATION SCURITY BREACHES Organization & DateInformation Security Breach Blue Cross Blue Shield - 2009Personal laptop stolen with unencrypted copy of database with national provider ID number and personal information of more than 850,000 physicians and other U.S. Healthcare providers. Kaiser Hospital - 2009Hospital fined $182,500 and $250,000 by state of California for privacy violation involving at least 27 employees improperly accessing records of mother of octuplets and her children. TJX - 2005More than 45 million customers credit card information was stolen over a period of more than 6 months. U.S. Military - 2009Computer hard drive with data for 76 million U.S. veterans was erroneously sent out for repair. Figure 14.5 Slide 16 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-16 COMPLIANCE WITH RECENT U.S. LAWS Recent U.S. Laws with Information Security Impacts Figure 14.6 Slide 17 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-17 COMPLIANCE WITH RECENT U.S. LAWS Sarbanes-Oxley Act of 2002 (SOX) -Legislation in response to corporate scandals at Enron, Tyco, WorldCom, and others -Applies to publicly traded U.S. companies Slide 18 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-18 SARBANESOXLEY ACT OF 2002 ( SOX) Impact of SOX on IS organization: - Records retention - The act states that companies must retain electronic communication such as email and instant messaging for a period of at least five years - IT audit controls -Company officers must certify that they are responsible for establishing and maintaining internal controls Section 404 states that companies must use an internal control framework such as COSO Slide 19 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-19 SARBANESOXLEY ACT OF 2002 ( SOX) COSO A framework for auditors to use when assessing internal controls, created by the Committee of Sponsoring Organizations (COSO) COSO definition of an Internal Control a process, effected by an entitys board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: - Effectiveness and efficiency of operations - Reliability of financial reporting - Compliance with applicable laws and regulations COSO Framework contains five interrelated categories: - Risk Assessment- Control Environment - Control Activities- Monitoring - Information and Communication Slide 20 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-20 GRAMM-LEACH-BLILEY ACT of 1999 (GBLA) Gramm-Leach-Bliley Act (GBLA) -Mandates that all organizations maintain a high level of confidentiality of all financial information of their clients or customers - Federal agencies and states enforce the following rules: - Financial Privacy Rule - Safeguards Rule Slide 21 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-21 GRAMM-LEACH-BLILEY ACT OF 1999 (GBLA) Financial Privacy Rule - Requires financial institutions to provide customers with privacy notices - Organizations must clearly state their privacy policies when establishing relationships with customers -Organizations cannot disclose non-public personal information to a third-party Safeguards Rule - Organizations must have a written security plan in place to protect a customers non-public confidential information Slide 22 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-22 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) Health Insurance Portability and Accountability Act (HIPAA) Includes Privacy and Security Rules Healthcare providers must maintain privacy of non-public confidential medical information of all patients Non-compliance can lead to serious civil penalties and fines Security rules are for electronic personal health information Note: Recent legislation also requires that healthcare providers perform a formal security risk assessment Slide 23 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-23 PATRIOT ACT: INTERCEPT AND OBSTRUCT TERRORISM ACT OF 2001 Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 - Commonly called the PATRIOT Act - Gives the US government greater ability to use tools to access information about individuals - Victims of computer hacking can now request law enforcement assistance Slide 24 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-24 CALIFORNIA INFORMATION PRACTICES ACT (CA Senate Bill 1386) Requires organizations that store non-public information on California residents to report information theft within 96 hours Noncompliance may lead to civil or criminal consequences Note: Companies in the past have often been silent about thefts of electronic information on individuals (employees, customers), and the act makes this illegal Slide 25 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-25 ORGANIZATIONAL POLICIES FOR INFORMATION SECURITY. - Required by many laws and regulations (e.g., SOX) - Required by U.S. insurance companies due to risks of heavy civil or criminal penalties for non-compliance Information Security Policy A written policy document describing what is, and is not, permissible use of information in the organization, and the consequences for violation of the policy Slide 26 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-26 DEVELOPING AN INFORMATION SECURITY POLICY WHO should develop the security policy? - Policy Committee with representatives of all affected user groups and stakeholders -Policy Committee that develops policy should also meet regularly to ensure that it continues to meet the organizations needs and satisfies current regulations -Managers need to communicate, provide training on, and enforce the policy Slide 27 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-27 DEVELOPING AN INFORMATION SECURITY POLICY WHAT should be in the policy? - Typical content: - Access control policies - External access policies - User and Physical policies Examples or templates of security policies are available from several Internet sites. SANS Security Policy Template Slide 28 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-28 ACCEPTABLE USE POLICY Example: Information Technology resources are provided in the hope that the community will use them in a spirit of mutual cooperation. Resources are limited and must be shared. Everyone will benefit if all computer users avoid any activities that cause problems for others who use the same systems. - Stevens Institute of Technology, 2010 Slide 29 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-29 DEVELOPING AN INFORMATION SECURITY POLICY Other General Guidelines : Policies should be appropriate for the estimated risks of the organization Policies should be quickly modified when new situations arise affecting security and affected organizational members should be notified about these policy modifications Policies should be easily accessed by employees Slide 30 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-30 BUSINESS CONTINUITY PLANNING Research has shown that businesses that cannot resume operations in a reasonable time frame do not survive. Business Continuity Planning (BCP) Plans to ensure that employees and business processes can continue when faced with any major, unanticipated disruption Slide 31 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-31 BUSINESS CONTINUITY PLANNING 1.Define the critical business processes and departments 2.Identify interdependencies between them 3.Examine all possible disruptions to these systems 4.Gather quantitative and qualitative information on these threats 5.Provide remedies for restoring systems Slide 32 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-32 BCP LESSONS LEARNED AFTER 9/11 TERRORIST ATTACKS IN U.S. BCP Plans should include: -Alternate workspaces for people with working computers and phone lines - Backup IT sites that are not too close, but not too far away - Up-to-date evacuation plans that everyone knows and has practiced -Backed-up laptops and departmental servers, because a lot of corporate information is housed on these machines rather than in the data center -Easily accessible phone lists, e-mail lists, and even instant- messenger lists so that people can communicate with loved ones and colleagues Slide 33 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-33 BCP LESSONS LEARNED AFTER HURRICANE KATRINA IN U.S. Keep Data and Data Centers more than 1000 miles apart. Plan for the Public Infrastructure to not be available. Plan for Civil unrest In case your A-Team is not available, assemble a B-Team Source: Junglas and Ives, 2007 Slide 34 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-34 CATEGORIES FOR TOLERABLE DOWNTIMES. Slide 35 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-35 ELECTRONICS RECORDS MANAGEMENT Electronic Records Management (ERM) ERM is a discipline that addresses retention periods for electronic documents and other records management issues Both SOX and HIPAA laws have specific requirements for document retention Recent eDiscovery amendments also include rules for retention periods and information gathering in anticipation of litigation, with penalties for non-compliance Slide 36 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-36 ELECTRONICS RECORDS MANAGEMENT ERM managers are responsible for: - Defining what constitutes an electronic record - Analyzing the current business environment and developing appropriate ERM policies - Classifying specific records based upon their importance, regulatory requirements, and duration - Authenticating records by maintaining accurate logs and procedures to prove that these are the actual records, and that they have not been altered - Formulating policies and monitoring compliance Slide 37 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-37 COPYRIGHT 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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall