James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8th ed.  Boston, MA: McGraw-Hill, Inc., 2007.  ISBN: 13 9780073323091

1. Chapter 13 Security and
Ethical Challenges
James A. O'Brien, and George Marakas.
Management Information Systems with MISource
2007, 8th
ed. Boston, MA: McGraw-Hill, Inc.,
2007. ISBN: 13 9780073323091

2. IT Security, Ethics, and Society
2Chapter 13 Security and Ethical Challenges
 IT has both beneficial
and detrimental
effects on society and
people
 Manage work
activities to
minimize the
detrimental effects
of IT
 Optimize the
beneficial effects

3. Business Ethics
 Ethics questions that managers confront as part
of their daily business decision making include:
Equity
Rights
Honesty
Exercise of corporate power
3Chapter 13 Security and Ethical Challenges

4. Categories of Ethical Business
Issues
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5. Corporate Social Responsibility
Theories
 Stockholder Theory
 Managers are agents of the stockholders
 Their only ethical responsibility is to increase the profits of
the business without violating the law or engaging in
fraudulent practices
 Social Contract Theory
 Companies have ethical responsibilities to all members of
society, who allow corporations to exist
 Stakeholder Theory
 Managers have an ethical responsibility to manage a firm
for the benefit of all its stakeholders
 Stakeholders are all individuals and groups that have a
stake in, or claim on, a company
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6. Principles of Technology Ethics
 Proportionality - The good achieved by the technology must
outweigh the harm or risk; there must be no alternative that
achieves the same or comparable benefits with less harm or
risk
 Informed Consent - Those affected by the technology should
understand and accept the risks
 Justice
 The benefits and burdens of the technology should be
distributed fairly
 Those who benefit should bear their fair share of the risks,
and those who do not benefit should not suffer a significant
increase in risk
 Minimized Risk - Even if judged acceptable by the other three
guidelines, the technology must be implemented so as to
avoid all unnecessary risk
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7. AITP Standards of Professional
Conduct
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8. Responsible Professional
Guidelines
 A responsible professional
Acts with integrity
Increases personal competence
Sets high standards of personal performance
Accepts responsibility for his/her work
Advances the health, privacy, and general
welfare of the public
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9. Computer Crime
 Computer crime includes
Unauthorized use, access, modification, or
destruction of hardware, software, data, or
network resources
The unauthorized release of information
The unauthorized copying of software
Denying an end user access to his/her own
hardware, software, data, or network resources
Using or conspiring to use computer or
network resources illegally to obtain
information or tangible property
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10. Cybercrime Protection Measures
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11. Hacking
 Hacking is
The obsessive use of computers
The unauthorized access and use of networked
computer systems
 Electronic Breaking and Entering
Hacking into a computer system and reading
files, but neither stealing nor damaging anything
 Cracker
A malicious or criminal hacker who maintains
knowledge of the vulnerabilities found for
private advantage
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12. Common Hacking Tactics
 Denial of Service
 Hammering a website’s equipment with too many requests for
information
 Clogging the system, slowing performance, or crashing the site
 Scans
 Widespread probes of the Internet to determine types of
computers, services, and connections
 Looking for weaknesses
 Sniffer
 Programs that search individual packets of data as they pass
through the Internet
 Capturing passwords or entire contents
 Spoofing
 Faking an e-mail address or Web page to trick users into
passing along critical information like passwords or credit card
numbers
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13. Common Hacking Tactics
 Trojan House
 A program that, unknown to the user, contains instructions that
exploit a known vulnerability in some software
 Back Doors
 A hidden point of entry to be used in case the original entry
point is detected or blocked
 Malicious Applets
 Tiny Java programs that misuse your computer’s resources,
modify files on the hard disk, send fake email, or steal
passwords
 War Dialing
 Programs that automatically dial thousands of telephone
numbers in search of a way in through a modem connection
 Logic Bombs
 An instruction in a computer program that triggers a malicious
act
13Chapter 13 Security and Ethical Challenges

14. Common Hacking Tactics
 Buffer Overflow
 Crashing or gaining control of a computer by sending too much
data to buffer memory
 Password Crackers
 Software that can guess passwords
 Social Engineering
 Gaining access to computer systems by talking unsuspecting
company employees out of valuable information, such as
passwords
 Dumpster Diving
 Sifting through a company’s garbage to find information to help
break into their computers
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15. Cyber Theft
 Many computer crimes involve the theft of
money
 The majority are “inside jobs” that involve
unauthorized network entry and alternation of
computer databases to cover the tracks of the
employees involved
 Many attacks occur through the Internet
 Most companies don’t reveal that they have
been targets or victims of cybercrime
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16. Unauthorized Use at Work
 Unauthorized use of computer systems and
networks is time and resource theft
Doing private consulting
Doing personal finances
Playing video games
Unauthorized use of the Internet or company
networks
 Sniffers
Used to monitor network traffic or capacity
Find evidence of improper use
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17. Internet Abuses in the Workplace
General email abuses
Unauthorized usage and access
Copyright infringement/plagiarism
Newsgroup postings
Transmission of confidential data
Pornography
Hacking
Non-work-related download/upload
Leisure use of the Internet
Use of external ISPs
Moonlighting
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18. Software Piracy
 Software Piracy
Unauthorized copying of computer programs
 Licensing
Purchasing software is really a payment
for a license for fair use
Site license allows a certain number of copies
18
A third of the software
industry’s revenues are
lost to piracy
Chapter 13 Security and Ethical Challenges

19. Theft of Intellectual Property
 Intellectual Property
Copyrighted material
Includes such things as music, videos,
images, articles, books, and software
 Copyright Infringement is Illegal
Peer-to-peer networking techniques have
made it easy to trade pirated intellectual
property
 Publishers Offer Inexpensive Online Music
Illegal downloading of music and video is
down and continues to drop
19Chapter 13 Security and Ethical Challenges

20. Viruses and Worms
 A virus is a program that cannot work without
being inserted into another program
A worm can run unaided
 These programs copy annoying or destructive
routines into networked computers
Copy routines spread the virus
 Commonly transmitted through
The Internet and online services
Email and file attachments
Disks from contaminated computers
Shareware
20Chapter 13 Security and Ethical Challenges

21. Top Five Virus Families of all Time
 My Doom, 2004
 Spread via email and over Kazaa file-sharing network
 Installs a back door on infected computers
 Infected email poses as returned message or one that can’t be
opened correctly, urging recipient to click on attachment
 Opens up TCP ports that stay open even after termination of
the worm
 Upon execution, a copy of Notepad is opened, filled with
nonsense characters
 Netsky, 2004
 Mass-mailing worm that spreads by emailing itself to all email
addresses found on infected computers
 Tries to spread via peer-to-peer file sharing by copying itself
into the shared folder
 It renames itself to pose as one of 26 other common files along
the way
21Chapter 13 Security and Ethical Challenges

22. Top Five Virus Families of all Time
 SoBig, 2004
 Mass-mailing email worm that arrives as
an attachment
 Examples: Movie_0074.mpg.pif, Document003.pif
 Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking for
email addresses to which it can send itself
 Also attempts to download updates for itself
 Klez, 2002
 A mass-mailing email worm that arrives with a randomly named
attachment
 Exploits a known vulnerability in MS Outlook to auto-execute on
unpatched clients
 Tries to disable virus scanners and then copy itself to all local
and networked drives with a random file name
 Deletes all files on the infected machine and any mapped
network drives on the 13th of all even-numbered months
22Chapter 13 Security and Ethical Challenges

23. Top Five Virus Families of all Time
 Sasser, 2004
 Exploits a Microsoft vulnerability to spread from computer to
computer with no user intervention
 Spawns multiple threads that scan local subnets for
vulnerabilities
23Chapter 13 Security and Ethical Challenges

24. The Cost of Viruses, Trojans,
Worms
 Cost of the top five virus families
Nearly 115 million computers in 200 countries
were infected in 2004
Up to 11 million computers are believed to
be permanently infected
In 2004, total economic damage from virus
proliferation was $166 to $202 billion
Average damage per computer is between
$277 and $366
24Chapter 13 Security and Ethical Challenges

25. Adware and Spyware
 Adware
Software that purports to serve a useful
purpose, and often does
Allows advertisers to display pop-up and
banner ads without the consent of the
computer users
 Spyware
Adware that uses an Internet connection in
the background, without the user’s permission
or knowledge
Captures information about the user and
sends it over the Internet 25Chapter 13 Security and Ethical Challenges

26. Spyware Problems
 Spyware can steal private information and also
Add advertising links to Web pages
Redirect affiliate payments
Change a users home page and search settings
Make a modem randomly call premium-rate
phone numbers
Leave security holes that let Trojans in
Degrade system performance
 Removal programs are often not completely
successful in eliminating spyware
26Chapter 13 Security and Ethical Challenges

27. Privacy Issues
 The power of information technology to store
and retrieve information can have a negative
effect on every individual’s right to privacy
Personal information is collected with every
visit to a Web site
Confidential information stored by credit
bureaus, credit card companies, and the
government has been stolen or misused
27Chapter 13 Security and Ethical Challenges

28. Opt-in Versus Opt-out
 Opt-In
You explicitly consent to allow data to be
compiled about you
This is the default in Europe
 Opt-Out
Data can be compiled about you unless you
specifically request it not be
This is the default in the U.S.
28Chapter 13 Security and Ethical Challenges

29. Privacy Issues
 Violation of Privacy
 Accessing individuals’ private email conversations and
computer records
 Collecting and sharing information about individuals gained
from their visits to Internet websites
 Computer Monitoring
 Always knowing where a person is
 Mobile and paging services are becoming more closely
associated with people than with places
 Computer Matching
 Using customer information gained from many sources to
market additional business services
 Unauthorized Access of Personal Files
 Collecting telephone numbers, email addresses, credit card
numbers, and other information to build customer profiles
29Chapter 13 Security and Ethical Challenges

30. Protecting Your Privacy on the
Internet
 There are multiple ways to protect your privacy
Encrypt email
Send newsgroup postings through
anonymous remailers
Ask your ISP not to sell your name and
information to mailing list providers and
other marketers
Don’t reveal personal data and interests on
online service and website user profiles
30Chapter 13 Security and Ethical Challenges

31. Privacy Laws
 Electronic Communications Privacy Act
and Computer Fraud and Abuse Act
 Prohibit intercepting data communications messages, stealing or
destroying data, or trespassing in federal-related computer
systems
 U.S. Computer Matching and Privacy Act
 Regulates the matching of data held in federal agency files to
verify eligibility for federal programs
 Other laws impacting privacy and how
much a company spends on compliance
 Sarbanes-Oxley
 Health Insurance Portability and Accountability Act (HIPAA)
 Gramm-Leach-Bliley
 USA Patriot Act
 California Security Breach Law
 Securities and Exchange Commission rule 17a-4
31Chapter 13 Security and Ethical Challenges

32. Computer Libel and Censorship
 The opposite side of the privacy debate…
 Freedom of information, speech, and press
 Biggest battlegrounds - bulletin boards, email boxes, and
online files of Internet and public networks
 Weapons used in this battle – spamming, flame mail,
libel laws, and censorship
 Spamming - Indiscriminate sending of unsolicited email
messages to many Internet users
 Flaming
 Sending extremely critical, derogatory, and often
vulgar email messages or newsgroup posting to other
users on the Internet or online services
 Especially prevalent on special-interest newsgroups
32Chapter 13 Security and Ethical Challenges

33. Cyberlaw
 Laws intended to regulate activities over the Internet or via
electronic communication devices
 Encompasses a wide variety of legal and political issues
 Includes intellectual property, privacy, freedom of
expression, and jurisdiction
 The intersection of technology and the law is controversial
 Some feel the Internet should not be regulated
 Encryption and cryptography make traditional form of
regulation difficult
 The Internet treats censorship as damage and simply
routes around it
 Cyberlaw only began to emerge in 1996
 Debate continues regarding the applicability of legal
principles derived from issues that had nothing to do with
cyberspace
33Chapter 13 Security and Ethical Challenges

34. Other Challenges
 Employment
 IT creates new jobs and increases productivity
 It can also cause significant reductions in job opportunities, as well as
requiring new job skills
 Computer Monitoring
 Using computers to monitor the productivity and behavior of employees as
they work
 Criticized as unethical because it monitors individuals, not just work, and is
done constantly
 Criticized as invasion of privacy because many employees do not know
they are being monitored
 Working Conditions
 IT has eliminated monotonous or obnoxious tasks
 However, some skilled craftsperson jobs have been replaced by jobs
requiring routine, repetitive tasks or standby roles
 Individuality
 Dehumanizes and depersonalizes activities because computers eliminate
human relationships
 Inflexible systems
34Chapter 13 Security and Ethical Challenges

35. Health Issues
 Cumulative Trauma Disorders (CTDs)
Disorders suffered by people who sit at a
PC or terminal and do fast-paced repetitive
keystroke jobs
 Carpal Tunnel Syndrome
Painful, crippling ailment of the hand
and wrist
Typically requires surgery to cure
35Chapter 13 Security and Ethical Challenges

36. Ergonomics
 Designing healthy
work environments
 Safe, comfortable,
and pleasant for
people to work in
 Increases
employee morale
and productivity
 Also called human
factors
engineering
36Chapter 13 Security and Ethical Challenges
Ergonomics Factors

37. Societal Solutions
 Using information technologies to solve human
and social problems
Medical diagnosis
Computer-assisted instruction
Governmental program planning
Environmental quality control
Law enforcement
Job placement
 The detrimental effects of IT
Often caused by individuals or organizations
not accepting ethical responsibility for their
actions
37Chapter 13 Security and Ethical Challenges

38. Security Management of IT
 The Internet was developed for inter-operability,
not impenetrability
Business managers and professionals alike
are responsible for the security, quality, and
performance of business information systems
Hardware, software, networks, and data
resources must be protected by a variety
of security measures
38Chapter 13 Security and Ethical Challenges

39. Security Management
 The goal of security
management is the
accuracy, integrity,
and safety of all
information system
processes and
resources
39Chapter 13 Security and Ethical Challenges

40. Internetworked Security Defenses
 Encryption
Data is transmitted in scrambled form
It is unscrambled by computer systems for
authorized users only
The most widely used method uses a pair of
public and private keys unique to each
individual
40Chapter 13 Security and Ethical Challenges

41. Public/Private Key Encryption
41Chapter 13 Security and Ethical Challenges

42. Internetworked Security Defenses
 Firewalls
A gatekeeper system that protects a
company’s intranets and other computer
networks from intrusion
Provides a filter and safe transfer point for
access to/from the Internet and other
networks
Important for individuals who connect to the
Internet with DSL or cable modems
Can deter hacking, but cannot prevent it
42Chapter 13 Security and Ethical Challenges

43. Internet and Intranet Firewalls
43Chapter 13 Security and Ethical Challenges

44. Denial of Service Attacks
 Denial of service attacks depend on three
layers of networked computer systems
The victim’s website
The victim’s Internet service provider
Zombie or slave computers that have been
commandeered by the cybercriminals
44Chapter 13 Security and Ethical Challenges

45. Defending Against Denial of Service
 At Zombie Machines
Set and enforce security policies
Scan for vulnerabilities
 At the ISP
Monitor and block traffic spikes
 At the Victim’s Website
Create backup servers and network
connections
45Chapter 13 Security and Ethical Challenges

46. Internetworked Security Defenses
 Email Monitoring
Use of content monitoring software that scans
for troublesome words that might compromise
corporate security
 Virus Defenses
Centralize the updating and distribution of
antivirus software
Use a security suite that integrates virus
protection with firewalls, Web security,
and content blocking features
46Chapter 13 Security and Ethical Challenges

47. Other Security Measures
 Security Codes
 Multilevel password system
 Encrypted passwords
 Smart cards with microprocessors
 Backup Files
 Duplicate files of data or programs
 Security Monitors
 Monitor the use of computers and networks
 Protects them from unauthorized use, fraud, and destruction
 Biometrics
 Computer devices measure physical traits that make each
individual unique
 Voice recognition, fingerprints, retina scan
 Computer Failure Controls
 Prevents computer failures or minimizes its effects
 Preventive maintenance
 Arrange backups with a disaster recovery organization
47Chapter 13 Security and Ethical Challenges

48. Other Security Measures
 In the event of a system failure, fault-tolerant systems have
redundant processors, peripherals, and software that provide
 Fail-over capability: shifts to back up components
 Fail-save capability: the system continues to operate at the
same level
 Fail-soft capability: the system continues to operate at a
reduced but acceptable level
 A disaster recovery plan contains formalized procedures to follow
in the event of a disaster
 Which employees will participate
 What their duties will be
 What hardware, software, and facilities will be used
 Priority of applications that will be processed
 Use of alternative facilities
 Offsite storage of databases
48Chapter 13 Security and Ethical Challenges

49. Information System Controls
 Methods and
devices that
attempt to
ensure the
accuracy,
validity, and
propriety of
information
system
activities
49Chapter 13 Security and Ethical Challenges

50. Auditing IT Security
 IT Security Audits
Performed by internal or external auditors
Review and evaluation of security measures
and management policies
Goal is to ensure that that proper and
adequate measures and policies are in place
50Chapter 13 Security and Ethical Challenges

51. Protecting Yourself from
Cybercrime
51Chapter 13 Security and Ethical Challenges