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CHAPTER 3


Ethics, Privacy and Information Security
CHAPTER OUTLINE

 3.1 Ethical Issues
 3.2 Threats to Information Security
 3.3 Protecting Information Resources
LEARNING OBJECTIVES
 Describe the major ethical issues related to
  information technology and identify situations
  in which they occur.
 Describe the many threats to information
  security.
 Understand the various defense mechanisms
  used to protect information systems.
 Explain IT auditing and planning for disaster
  recovery.
NASA Loses Secret
Information for Years
Ethical Issues


       Ethics
       Code of Ethics
Fundamental Tenets of Ethics


       Responsibility
       Accountability
       Liability
Unethical vs. Illegal


What is unethical is not necessarily illegal.

   Ethics scenarios
The Four Categories of Ethical Issues


        Privacy Issues
        Accuracy Issues
        Property Issues
        Accessibility Issues
Privacy Issues


            How much privacy
            do we have left?
You Be the Judge

                   Terry Childs: Guilty
                   or not Guilty?
Privacy
Court decisions have followed two rules:

 (1) The right of privacy is not absolute.
      Your privacy must be balanced against the
      needs of society.
  (2) The public‟s right to know is superior to
      the individual‟s right of privacy.
Threats to Privacy
 Data aggregators, digital dossiers, and
  profiling
 Electronic Surveillance
 Personal Information in Databases
 Information on Internet Bulletin
  Boards, Newsgroups, and Social Networking
  Sites
Data Aggregators, Digital Dossiers,
      and Profiling
Electronic Surveillance
Electronic Surveillance

 See "The State of Surveillance" article in
  BusinessWeek
 See the surveillance slideshow
 See additional surveillance slides
 And you think you have privacy? (video)
 Sense-through-the-Wall
Personal Information in Databases
 Banks
 Utility companies
 Government agencies
 Credit reporting agencies
Information on Internet Bulletin
Boards, Newsgroups, and Social Networking
Sites
Social Networking Sites Can
     Cause You Problems

Anyone can post derogatory information about
 you anonymously.
 (See this Washington Post article.)

You can also hurt yourself, as this article
 shows.
What Can You Do?
First, be careful what information you post on
 social networking sites.

Second, a company, ReputationDefender, says
 it can remove derogatory information from the
 Web.
Protecting Privacy

   Privacy Codes and Policies
       Opt-out Model
       Opt-in Model
3.2 Threats to Information Security
Factors Increasing the Threats to
Information Security
 Today‟s interconnected, interdependent,
  wirelessly-networked business environment
 Government legislation
 Smaller, faster, cheaper computers and
  storage devices
 Decreasing skills necessary to be a computer
  hacker
Decreasing Skill Necessary to be a Hacker
 New & Easier Attack Tools     Increasing Sophistication of Attacks
                                  Attack Sophistication
                               High




                   WiGLE.net

                               Low
                                      1980                        2005
                                       Knowledge Required by Intruder




                                  New & Easier Tools make it
                                very easy to attack the Network
Factors Increasing the Threats to
Information Security (continued)
 International organized crime turning to
  cybercrime
 Downstream liability
 Increased employee use of unmanaged
  devices
 Lack of management support
A Look at Unmanaged Devices




  Wi-Fi at McDonalds         Hotel Business Center




                       Wi-Fi at Starbucks
Key Information Security Terms
 Threat
 Exposure
 Vulnerability
 Risk
 Information system controls
Security Threats (Figure 3.1)
Categories of Threats to Information Systems

 Unintentional acts
 Natural disasters
 Technical failures
 Management failures
 Deliberate acts
 (from Whitman and Mattord, 2003)


   Example of a threat (video)
Unintentional Acts

 Human errors
 Deviations in quality of service by service
  providers (e.g., utilities)
 Environmental hazards (e.g., dirt, dust,
  humidity)
Human Errors
 Tailgating
 Shoulder surfing
 Carelessness with laptops and portable
  computing devices
 Opening questionable e-mails
 Careless Internet surfing
 Poor password selection and use
 And more
Anti-Tailgating Door
Shoulder Surfing
Most Dangerous Employees
Human resources and MIS

                          Remember, these
                          employees hold ALL
                          the information
Social Engineering

   60 Minutes Interview with Kevin Mitnick, the
    “King of Social Engineering”

   Kevin Mitnick served several years in a
    federal prison. Upon his release, he opened
    his own consulting firm, advising companies
    on how to deter people like him,
       See his company here
Natural Disasters
Deliberate Acts
 Espionage or trespass
 Information extortion
 Sabotage or vandalism
 Theft of equipment or information
     For example, dumpster diving
Deliberate Acts (continued)

Identity theft video




Compromises to intellectual property
Deliberate Acts (continued)
 Software attacks
     Virus
     Worm
          1988: first widespread worm, created by Robert
           T. Morris, Jr.
          (see the rapid spread of the Slammer worm)
     Trojan horse
     Logic Bomb
Deliberate Acts (continued)
 Software attacks (continued)
     Phishing attacks
          Phishing slideshow
          Phishing quiz
          Phishing example
          Phishing example
     Distributed denial-of-service attacks
          See botnet demonstration
Deliberate Acts (continued)

 Software attacks (continued)


   Can you be Phished?
How to Detect a Phish E-mail
Is the email really from eBay, or
PayPal, or a bank?

As Spammers get better, their emails look
 more genuine. How do you tell if it‟s a scam
 and phishing for personal information?
 Here‟s how ...
Is the email really from eBay, or PayPal,
 or a bank?
As an example, here is what the email said:
   Return-path: <service@paypal.com>
   From: "PayPal"<service@paypal.com>
   Subject: You have 1 new Security Message Alert !


Note that they even give
advice in the right column
about security
Example Continued – bottom of the email
How to see what is happening
         View Source
   In Outlook, right click on email, click „view source‟
   In GroupWise, open email and click on the Message Source tab
   In Mozilla Thunderbird, click on View, and Source.
   Below is the part of the text that makes the email look official –
    the images came from the PayPal website.
View Source – The Real Link



 In the body it said, “If you are traveling,
  “Travelling Confirmation Here”
 Here is where you are really being sent
      href=3Dftp://futangiu:futangiu@209.202.224.140/in
       dex.htm
 Notice that the link is not only not PayPal, it is an
  IP address, 2 giveaways of a fraudulent link.
Another Example – Amazon




View Source
Deliberate Acts (continued)
 Alien Software
     Spyware (see video)
     Spamware
     Cookies
          Cookie demo
Keystroke Logger




                   Plugs in between
                   monitor and computer
Example of CAPTCHA
Deliberate Acts (continued)
  Supervisory control and data acquisition
   (SCADA) attacks

Wireless
sensor
What if a SCADA attack were successful?



                              Northeastern
                              U.S. power
                              outage in 2003
Results of the power outage in NYC
More results of power outage in NYC
A Successful (Experimental) SCADA
               Attack


   Video of an experimental SCADA attack
    that was successful
Example of Cyber Warfare




See video of cyber warfare directed at Estonia
3.3 Protecting Information Resources
Risk!



        There is
        always
        risk!
And then there is real risk!
Risk Management

   Risk
   Risk management
   Risk analysis
   Risk mitigation
Risk Mitigation Strategies

    Risk Acceptance
    Risk limitation
    Risk transference
Risk Optimization
Controls

    Physical controls
    Access controls
    Communications (network) controls
    Application controls
Where Defense Mechanisms
(Controls) Are Located
Access Controls
 Authentication
     Something the user is (biometrics powerpoints)
          Video on biometrics
          The latest biometric: gait recognition
          The Raytheon Personal Identification Device
     Something the user has
     Something the user does
     Something the user knows
          passwords
          passphrases
Access Controls (continued)

    Authorization
        Privilege
        Least privilege
Communication or Network Controls
 Firewalls
 Anti-malware systems




 Whitelisting and Blacklisting
 Intrusion detection systems
 Encryption
Basic Home Firewall (top) and
Corporate Firewall (bottom)
How Public Key Encryption
         Works
How Digital Certificates Work
Communication or Network Controls
(continued)

 Virtual private networking
 Secure Socket Layer (now transport layer
  security)
 Vulnerability management systems
 Employee monitoring systems
Virtual Private Network and Tunneling
Popular Vulnerability Management Systems
Popular Employee Monitoring Systems
Employee Monitoring System
Business Continuity Planning, Backup,
and Recovery

   Hot Site
   Warm Site
   Cold Site
Information Systems Auditing

  Types of Auditors and Audits
      Internal
      External
IS Auditing Procedure

   Auditing around the computer
   Auditing through the computer
   Auditing with the computer
Chapter Closing Case

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Rainer+3e Student Pp Ts Ch03

  • 1. CHAPTER 3 Ethics, Privacy and Information Security
  • 2. CHAPTER OUTLINE 3.1 Ethical Issues 3.2 Threats to Information Security 3.3 Protecting Information Resources
  • 3. LEARNING OBJECTIVES  Describe the major ethical issues related to information technology and identify situations in which they occur.  Describe the many threats to information security.  Understand the various defense mechanisms used to protect information systems.  Explain IT auditing and planning for disaster recovery.
  • 5. Ethical Issues  Ethics  Code of Ethics
  • 6. Fundamental Tenets of Ethics  Responsibility  Accountability  Liability
  • 7. Unethical vs. Illegal What is unethical is not necessarily illegal. Ethics scenarios
  • 8. The Four Categories of Ethical Issues  Privacy Issues  Accuracy Issues  Property Issues  Accessibility Issues
  • 9. Privacy Issues How much privacy do we have left?
  • 10. You Be the Judge Terry Childs: Guilty or not Guilty?
  • 11. Privacy Court decisions have followed two rules: (1) The right of privacy is not absolute. Your privacy must be balanced against the needs of society. (2) The public‟s right to know is superior to the individual‟s right of privacy.
  • 12. Threats to Privacy  Data aggregators, digital dossiers, and profiling  Electronic Surveillance  Personal Information in Databases  Information on Internet Bulletin Boards, Newsgroups, and Social Networking Sites
  • 13. Data Aggregators, Digital Dossiers, and Profiling
  • 15. Electronic Surveillance  See "The State of Surveillance" article in BusinessWeek  See the surveillance slideshow  See additional surveillance slides  And you think you have privacy? (video)  Sense-through-the-Wall
  • 16. Personal Information in Databases  Banks  Utility companies  Government agencies  Credit reporting agencies
  • 17. Information on Internet Bulletin Boards, Newsgroups, and Social Networking Sites
  • 18. Social Networking Sites Can Cause You Problems Anyone can post derogatory information about you anonymously. (See this Washington Post article.) You can also hurt yourself, as this article shows.
  • 19. What Can You Do? First, be careful what information you post on social networking sites. Second, a company, ReputationDefender, says it can remove derogatory information from the Web.
  • 20. Protecting Privacy  Privacy Codes and Policies  Opt-out Model  Opt-in Model
  • 21. 3.2 Threats to Information Security
  • 22. Factors Increasing the Threats to Information Security  Today‟s interconnected, interdependent, wirelessly-networked business environment  Government legislation  Smaller, faster, cheaper computers and storage devices  Decreasing skills necessary to be a computer hacker
  • 23. Decreasing Skill Necessary to be a Hacker New & Easier Attack Tools Increasing Sophistication of Attacks Attack Sophistication High WiGLE.net Low 1980 2005 Knowledge Required by Intruder New & Easier Tools make it very easy to attack the Network
  • 24. Factors Increasing the Threats to Information Security (continued)  International organized crime turning to cybercrime  Downstream liability  Increased employee use of unmanaged devices  Lack of management support
  • 25. A Look at Unmanaged Devices Wi-Fi at McDonalds Hotel Business Center Wi-Fi at Starbucks
  • 26. Key Information Security Terms  Threat  Exposure  Vulnerability  Risk  Information system controls
  • 28. Categories of Threats to Information Systems  Unintentional acts  Natural disasters  Technical failures  Management failures  Deliberate acts (from Whitman and Mattord, 2003) Example of a threat (video)
  • 29. Unintentional Acts  Human errors  Deviations in quality of service by service providers (e.g., utilities)  Environmental hazards (e.g., dirt, dust, humidity)
  • 30. Human Errors  Tailgating  Shoulder surfing  Carelessness with laptops and portable computing devices  Opening questionable e-mails  Careless Internet surfing  Poor password selection and use  And more
  • 33. Most Dangerous Employees Human resources and MIS Remember, these employees hold ALL the information
  • 34. Social Engineering  60 Minutes Interview with Kevin Mitnick, the “King of Social Engineering”  Kevin Mitnick served several years in a federal prison. Upon his release, he opened his own consulting firm, advising companies on how to deter people like him,  See his company here
  • 36. Deliberate Acts  Espionage or trespass  Information extortion  Sabotage or vandalism  Theft of equipment or information  For example, dumpster diving
  • 37. Deliberate Acts (continued) Identity theft video Compromises to intellectual property
  • 38. Deliberate Acts (continued)  Software attacks  Virus  Worm  1988: first widespread worm, created by Robert T. Morris, Jr.  (see the rapid spread of the Slammer worm)  Trojan horse  Logic Bomb
  • 39. Deliberate Acts (continued)  Software attacks (continued)  Phishing attacks  Phishing slideshow  Phishing quiz  Phishing example  Phishing example  Distributed denial-of-service attacks  See botnet demonstration
  • 40. Deliberate Acts (continued)  Software attacks (continued) Can you be Phished?
  • 41. How to Detect a Phish E-mail
  • 42. Is the email really from eBay, or PayPal, or a bank? As Spammers get better, their emails look more genuine. How do you tell if it‟s a scam and phishing for personal information? Here‟s how ...
  • 43. Is the email really from eBay, or PayPal, or a bank? As an example, here is what the email said:  Return-path: <service@paypal.com>  From: "PayPal"<service@paypal.com>  Subject: You have 1 new Security Message Alert ! Note that they even give advice in the right column about security
  • 44. Example Continued – bottom of the email
  • 45. How to see what is happening View Source  In Outlook, right click on email, click „view source‟  In GroupWise, open email and click on the Message Source tab  In Mozilla Thunderbird, click on View, and Source.  Below is the part of the text that makes the email look official – the images came from the PayPal website.
  • 46. View Source – The Real Link  In the body it said, “If you are traveling, “Travelling Confirmation Here”  Here is where you are really being sent  href=3Dftp://futangiu:futangiu@209.202.224.140/in dex.htm  Notice that the link is not only not PayPal, it is an IP address, 2 giveaways of a fraudulent link.
  • 47. Another Example – Amazon View Source
  • 48. Deliberate Acts (continued)  Alien Software  Spyware (see video)  Spamware  Cookies  Cookie demo
  • 49. Keystroke Logger Plugs in between monitor and computer
  • 51. Deliberate Acts (continued)  Supervisory control and data acquisition (SCADA) attacks Wireless sensor
  • 52. What if a SCADA attack were successful? Northeastern U.S. power outage in 2003
  • 53. Results of the power outage in NYC
  • 54. More results of power outage in NYC
  • 55. A Successful (Experimental) SCADA Attack Video of an experimental SCADA attack that was successful
  • 56. Example of Cyber Warfare See video of cyber warfare directed at Estonia
  • 58. Risk! There is always risk!
  • 59. And then there is real risk!
  • 60. Risk Management  Risk  Risk management  Risk analysis  Risk mitigation
  • 61. Risk Mitigation Strategies  Risk Acceptance  Risk limitation  Risk transference
  • 63. Controls  Physical controls  Access controls  Communications (network) controls  Application controls
  • 65. Access Controls  Authentication  Something the user is (biometrics powerpoints)  Video on biometrics  The latest biometric: gait recognition  The Raytheon Personal Identification Device  Something the user has  Something the user does  Something the user knows  passwords  passphrases
  • 66. Access Controls (continued)  Authorization  Privilege  Least privilege
  • 67. Communication or Network Controls  Firewalls  Anti-malware systems  Whitelisting and Blacklisting  Intrusion detection systems  Encryption
  • 68. Basic Home Firewall (top) and Corporate Firewall (bottom)
  • 69. How Public Key Encryption Works
  • 71. Communication or Network Controls (continued)  Virtual private networking  Secure Socket Layer (now transport layer security)  Vulnerability management systems  Employee monitoring systems
  • 72. Virtual Private Network and Tunneling
  • 76. Business Continuity Planning, Backup, and Recovery  Hot Site  Warm Site  Cold Site
  • 77. Information Systems Auditing  Types of Auditors and Audits  Internal  External
  • 78. IS Auditing Procedure  Auditing around the computer  Auditing through the computer  Auditing with the computer