Security and
       International E-Commerce

                        Jim Maloney
                jmaloney@SecurityPortal.com




November 2000
                                    SecurityPortal
                                    The focal point for security on the Net™
Agenda
       Security and e-commerce
       Security defined
       General security threats to e-commerce
       International security issues
       Key elements of a security solution
       Recommended security approach
       Summary

2                               Copyright 2000 Security Portal, Inc. All rights reserved.
Why is security important for E-Commerce?

                    Increased E-Business Opportunities



        Increased Exposure, Threats, Vulnerabilities, Privacy Concerns


           Ubiquitous          Customer-                  Sophisticated
            Internet         Centric Business              Applications
                                 Models




    Increased     Expanded          ASP           Tech-                      Mobile
    Bandwidth      Access         Delivery        Savvy                      Society
                                   Model         Culture
3                                               Copyright 2000 Security Portal, Inc. All rights reserved.
Old economy view of security
       In the “Old Economy” computing
        security was often viewed as a
        discretionary element of the business
       The focus was on protection of
        information systems and data



4                             Copyright 2000 Security Portal, Inc. All rights reserved.
New economy view of security
       In the “New Economy” computing
        security is viewed as a strategic
        element of the business
       The focus is on enabling new ways of
        doing business and value creation
       And from a protection perspective,
        security is now protecting the entire
        business, not just its information
        systems
5                             Copyright 2000 Security Portal, Inc. All rights reserved.
A working definition of security
       Confidentiality – the protection of private data on
        hosts or in transit
       Integrity - the system does not corrupt information
        or allow unauthorized malicious or accidental
        changes to information
       Availability - the computer system’s hardware and
        software keeps working efficiently and the system
        is able to recover quickly and completely if a
        disaster occurs
       Accountability - the ability to determine who is
        responsible for the result of an action

6                                      Copyright 2000 Security Portal, Inc. All rights reserved.
General security threats to e-commerce

       Web site defacement
       Denial of service
       Theft of customer data
       Theft of intellectual property
       Sabotage of data or networks
       Financial fraud

7                             Copyright 2000 Security Portal, Inc. All rights reserved.
Resulting business impact
       Lack of consumer confidence if there are
        any real or perceived security issues
       Loss of profits due to last minute security
        implementations
       Damage to image and reputation if you
        have a visible security incident
       Bankruptcy if the majority of your business
        transactions occur online
       Benefits to competitors if your level of
        security is perceived to be inadequate
8                                Copyright 2000 Security Portal, Inc. All rights reserved.
International security issues
       Regulations and policies
       Education and awareness
       Cultural norms
       Access modes
       Local government stance on cyber
        crime


9                            Copyright 2000 Security Portal, Inc. All rights reserved.
Regulations and policies
        Encryption laws vary greatly from country to
         country. This can impact both the availability and
         use of the appropriate technology.
            http://cwis.kub.nl/~frw/people/koops/lawsurvy.htm


        Privacy and consumer protection laws also vary
         greatly from country to country. These laws control
         how personal data can be used and shared. Can
         lead to substantial fines if violations occur.
            http://www.gilc.org/privacy/survey


10                                          Copyright 2000 Security Portal, Inc. All rights reserved.
Education and awareness
        While malicious, external security attacks get most
         of the publicity, it is often employee mistakes and
         oversights that cause security issues
        Security awareness education for all employees,
         and specific training for your IT team, can be an
         excellent defense for both internal and external
         incidents
        A recent survey showed that 86% of Shanghai’s
         networks had security products installed, but less
         that 2% of the network professionals actually knew
         how to protect their networks from intruders

11                                    Copyright 2000 Security Portal, Inc. All rights reserved.
Cultural norms
        Limited work hours for support and
         emergency response services
            Being “on-call”
            Multi-shift operations (24/7)
        History of not protecting intellectual
         property
            Electronic documents
            Software
            CDs and DVDs
12                                      Copyright 2000 Security Portal, Inc. All rights reserved.
Access modes
        There is a rapid increase in the number of
         users accessing the internet via wireless
         devices such as cell phones
        In addition to their small size, portable
         wireless devices have limited processing
         power, limited memory and a limited power
         supply
        These characteristics lead to several
         security challenges
13                               Copyright 2000 Security Portal, Inc. All rights reserved.
Access modes – continued
        With very limited keyboards and screens,
         cell phones and handhelds will require new
         authentication schemes to replace user
         names and passwords
            New schemes may include screen-based
             biometrics, embedded certificates, hardware
             tokens, web cookies and PINs
        These devices are viewed as likely platforms
         for viruses that can be carried from network
         to network without detection

14                                     Copyright 2000 Security Portal, Inc. All rights reserved.
Access modes - continued
        Data moving through air is vulnerable to
         interception using relatively inexpensive
         equipment
        The portability of these devices increases
         the need for physical security and
         authentication




15                                 Copyright 2000 Security Portal, Inc. All rights reserved.
Local government stance on cyber crime
        Singapore – Very detailed statutes
         regarding penalties for criminal hacking
        Brazil – No special laws against cyber crime
         (and a very active hacking community)
        The Philippines had no anti-hacking laws
         until the “Lovebug” virus was traced back to
         their country
        Interpol is working to establish international
         standards for cyber crime legislation
            http://www.mossbyrett.of.no/info/legal.html

16                                             Copyright 2000 Security Portal, Inc. All rights reserved.
Asia/Pacific perspective
        Factors accelerating adoption of
         security
            Growth of e-commerce in this region
            Government initiatives supporting
             security
            Recognition of the need for security
             guidelines, regulations and products that
             enable interoperability

17                                  Copyright 2000 Security Portal, Inc. All rights reserved.
Asia/Pacific perspective - continued
        Factors inhibiting the adoption of
         security
            Lack of integrated security solutions that
             can span systems and regions
            Lack of awareness of security issues and
             solutions



18                                  Copyright 2000 Security Portal, Inc. All rights reserved.
Security is more than technology
                          Anticipate




                 People             Process

       Respond                                            Monitor



                     Technology



                           Defend
19                                     Copyright 2000 Security Portal, Inc. All rights reserved.
Security is an attribute, not a component

                              User Interface


                    App       App      App         App
      Application
     Development
     Environment          Information Management                   System
                                                                 Management
                                                                 and Security
                           Distribution Services


             Network & Networking Services


               Hardware & Operating System

20                                             Copyright 2000 Security Portal, Inc. All rights reserved.
General security approach
        Develop accurate and complete policies that
         span the supply chain
        Make sure that all employees understand
         the importance of computing security
        Define clear roles and responsibilities for e-
         commerce security
        Perform regular audits, reviews and
         assessments of security
        Don’t ignore the physical security of your
         systems
21                                 Copyright 2000 Security Portal, Inc. All rights reserved.
General security approach - continued
        Implement and maintain a set of baseline
         controls for your e-commerce system
        Implement user ID and authentication via
         strong passwords, secure tokens or
         biometrics
        Have backup and recovery plans in place




22                               Copyright 2000 Security Portal, Inc. All rights reserved.
Secure web site development tips
        Include security as part of requirements gathering
        Include security as part of the architecture
        Be careful with embedded components
        Never trust incoming data
        Provide help to users
        Use code reviews
        Be aware of privacy and encryption laws
        Stay up-to-date on new risks, threat and
         vulnerabilities
        Document your security solution

23                                    Copyright 2000 Security Portal, Inc. All rights reserved.
Secure web site development references
        Recent articles on SecurityPortal: Best
         Practices for Secure Web Development
         (parts I and II)
        Web Security & Commerce (O'Reilly
         Nutshell) by Simson Garfinkel, Gene
         Spafford
        Web Security: A Step-by-Step Reference
         Guide by Lincoln D. Stein


24                               Copyright 2000 Security Portal, Inc. All rights reserved.
Summary
        Security is a critical enabler for e-commerce
        The negative impact of poor security can be
         substantial
        Many of the issues and solutions regarding
         secure international e-commerce are people
         and process related, not technical
        Security is a key attribute of a system that
         must be designed in, not added on later
        Maintaining a secure web site requires
         continuous vigilance
25                                 Copyright 2000 Security Portal, Inc. All rights reserved.
Bibliography
        E-Business Security: An Essential Element in the Post-Year
         2000 World. Gartner Group Research Report, April 17, 2000.
        The Net Present Value of Security. AtomicTangerine Special
         Report, October 11, 2000.
        International Ecommerce. SecurityPortal cover story,
         November 5, 2000.
        Information Security: The E-Commerce Driver. Dataquest
         Market Analysis, January 10, 2000.
        E-Business Impact on Security Technology and Practices.
         Gartner Group Research Note, November 11, 1999.
        Security Services in the Connected Age: From the basement
         to the boardroom. Gartner Group Market Analysis, July 4,
         2000.

26                                         Copyright 2000 Security Portal, Inc. All rights reserved.
Bibliography - Continued
        Shanghai to Enhance Information Security.
         http://www.nikkeibp.asiabiztech.com, February 15, 2000.
        Wireless Security: Locking Down the Wavelengths.
         Information Security Magazine, October 2000.
        Do Handhelds Need Virus Protection? PCWorld.com, June 29,
         2000.
        Best Practices for Secure Web Development.
         http://securityportal.com/cover/coverstory20001030.html,
         October 30, 2000.
        Best Practices for Secure Web Development: Technical
         Details.
         http://securityportal.com/articles/webdev20001103.html,
         November 10, 2000.

27                                        Copyright 2000 Security Portal, Inc. All rights reserved.

Maloney slides

  • 1.
    Security and International E-Commerce Jim Maloney jmaloney@SecurityPortal.com November 2000 SecurityPortal The focal point for security on the Net™
  • 2.
    Agenda  Security and e-commerce  Security defined  General security threats to e-commerce  International security issues  Key elements of a security solution  Recommended security approach  Summary 2 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 3.
    Why is securityimportant for E-Commerce? Increased E-Business Opportunities Increased Exposure, Threats, Vulnerabilities, Privacy Concerns Ubiquitous Customer- Sophisticated Internet Centric Business Applications Models Increased Expanded ASP Tech- Mobile Bandwidth Access Delivery Savvy Society Model Culture 3 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 4.
    Old economy viewof security  In the “Old Economy” computing security was often viewed as a discretionary element of the business  The focus was on protection of information systems and data 4 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 5.
    New economy viewof security  In the “New Economy” computing security is viewed as a strategic element of the business  The focus is on enabling new ways of doing business and value creation  And from a protection perspective, security is now protecting the entire business, not just its information systems 5 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 6.
    A working definitionof security  Confidentiality – the protection of private data on hosts or in transit  Integrity - the system does not corrupt information or allow unauthorized malicious or accidental changes to information  Availability - the computer system’s hardware and software keeps working efficiently and the system is able to recover quickly and completely if a disaster occurs  Accountability - the ability to determine who is responsible for the result of an action 6 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 7.
    General security threatsto e-commerce  Web site defacement  Denial of service  Theft of customer data  Theft of intellectual property  Sabotage of data or networks  Financial fraud 7 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 8.
    Resulting business impact  Lack of consumer confidence if there are any real or perceived security issues  Loss of profits due to last minute security implementations  Damage to image and reputation if you have a visible security incident  Bankruptcy if the majority of your business transactions occur online  Benefits to competitors if your level of security is perceived to be inadequate 8 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 9.
    International security issues  Regulations and policies  Education and awareness  Cultural norms  Access modes  Local government stance on cyber crime 9 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 10.
    Regulations and policies  Encryption laws vary greatly from country to country. This can impact both the availability and use of the appropriate technology.  http://cwis.kub.nl/~frw/people/koops/lawsurvy.htm  Privacy and consumer protection laws also vary greatly from country to country. These laws control how personal data can be used and shared. Can lead to substantial fines if violations occur.  http://www.gilc.org/privacy/survey 10 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 11.
    Education and awareness  While malicious, external security attacks get most of the publicity, it is often employee mistakes and oversights that cause security issues  Security awareness education for all employees, and specific training for your IT team, can be an excellent defense for both internal and external incidents  A recent survey showed that 86% of Shanghai’s networks had security products installed, but less that 2% of the network professionals actually knew how to protect their networks from intruders 11 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 12.
    Cultural norms  Limited work hours for support and emergency response services  Being “on-call”  Multi-shift operations (24/7)  History of not protecting intellectual property  Electronic documents  Software  CDs and DVDs 12 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 13.
    Access modes  There is a rapid increase in the number of users accessing the internet via wireless devices such as cell phones  In addition to their small size, portable wireless devices have limited processing power, limited memory and a limited power supply  These characteristics lead to several security challenges 13 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 14.
    Access modes –continued  With very limited keyboards and screens, cell phones and handhelds will require new authentication schemes to replace user names and passwords  New schemes may include screen-based biometrics, embedded certificates, hardware tokens, web cookies and PINs  These devices are viewed as likely platforms for viruses that can be carried from network to network without detection 14 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 15.
    Access modes -continued  Data moving through air is vulnerable to interception using relatively inexpensive equipment  The portability of these devices increases the need for physical security and authentication 15 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 16.
    Local government stanceon cyber crime  Singapore – Very detailed statutes regarding penalties for criminal hacking  Brazil – No special laws against cyber crime (and a very active hacking community)  The Philippines had no anti-hacking laws until the “Lovebug” virus was traced back to their country  Interpol is working to establish international standards for cyber crime legislation  http://www.mossbyrett.of.no/info/legal.html 16 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 17.
    Asia/Pacific perspective  Factors accelerating adoption of security  Growth of e-commerce in this region  Government initiatives supporting security  Recognition of the need for security guidelines, regulations and products that enable interoperability 17 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 18.
    Asia/Pacific perspective -continued  Factors inhibiting the adoption of security  Lack of integrated security solutions that can span systems and regions  Lack of awareness of security issues and solutions 18 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 19.
    Security is morethan technology Anticipate People Process Respond Monitor Technology Defend 19 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 20.
    Security is anattribute, not a component User Interface App App App App Application Development Environment Information Management System Management and Security Distribution Services Network & Networking Services Hardware & Operating System 20 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 21.
    General security approach  Develop accurate and complete policies that span the supply chain  Make sure that all employees understand the importance of computing security  Define clear roles and responsibilities for e- commerce security  Perform regular audits, reviews and assessments of security  Don’t ignore the physical security of your systems 21 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 22.
    General security approach- continued  Implement and maintain a set of baseline controls for your e-commerce system  Implement user ID and authentication via strong passwords, secure tokens or biometrics  Have backup and recovery plans in place 22 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 23.
    Secure web sitedevelopment tips  Include security as part of requirements gathering  Include security as part of the architecture  Be careful with embedded components  Never trust incoming data  Provide help to users  Use code reviews  Be aware of privacy and encryption laws  Stay up-to-date on new risks, threat and vulnerabilities  Document your security solution 23 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 24.
    Secure web sitedevelopment references  Recent articles on SecurityPortal: Best Practices for Secure Web Development (parts I and II)  Web Security & Commerce (O'Reilly Nutshell) by Simson Garfinkel, Gene Spafford  Web Security: A Step-by-Step Reference Guide by Lincoln D. Stein 24 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 25.
    Summary  Security is a critical enabler for e-commerce  The negative impact of poor security can be substantial  Many of the issues and solutions regarding secure international e-commerce are people and process related, not technical  Security is a key attribute of a system that must be designed in, not added on later  Maintaining a secure web site requires continuous vigilance 25 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 26.
    Bibliography  E-Business Security: An Essential Element in the Post-Year 2000 World. Gartner Group Research Report, April 17, 2000.  The Net Present Value of Security. AtomicTangerine Special Report, October 11, 2000.  International Ecommerce. SecurityPortal cover story, November 5, 2000.  Information Security: The E-Commerce Driver. Dataquest Market Analysis, January 10, 2000.  E-Business Impact on Security Technology and Practices. Gartner Group Research Note, November 11, 1999.  Security Services in the Connected Age: From the basement to the boardroom. Gartner Group Market Analysis, July 4, 2000. 26 Copyright 2000 Security Portal, Inc. All rights reserved.
  • 27.
    Bibliography - Continued  Shanghai to Enhance Information Security. http://www.nikkeibp.asiabiztech.com, February 15, 2000.  Wireless Security: Locking Down the Wavelengths. Information Security Magazine, October 2000.  Do Handhelds Need Virus Protection? PCWorld.com, June 29, 2000.  Best Practices for Secure Web Development. http://securityportal.com/cover/coverstory20001030.html, October 30, 2000.  Best Practices for Secure Web Development: Technical Details. http://securityportal.com/articles/webdev20001103.html, November 10, 2000. 27 Copyright 2000 Security Portal, Inc. All rights reserved.