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Information Systems 365/765
               Lecture 2
Commercial and Government Cyberwarfare
Today – Cyber-warfare

• Discuss “How to Sell
   Information Security” article
• Introduction to Cyberwar
• Discuss technical vs.
   administrative controls
• Watch Frontline video
• Discuss written assignment
  #1
Prospect Theory
• People react
  differently to risk
  and guaranteed
  outcomes based
  on whether those
  outcomes are
  positive or
  negative. Known
  as the Prospect
  Theory S-Curve
Prospect Theory

• If someone offers you a
  guaranteed $500 or a 50%
  chance at winning $1000,
  studies show that people tend
  to pick the guaranteed $500
Prospect Theory

• If someone told you that you
  had to surrender $500 or take
  a 50% chance of surrendering
  $1000, most people would
  tend to take the risk of losing
  $1000 rather than the fixed
  $500 loss
Prospect Theory
• When it comes to gain, people
  are risk averse
• When it comes to loss, people
  embrace risk

• What does this mean for IT
  security, which is almost
  always sold based on potential
  to avoid loss?
How to Sell Information
             Security
Prospect Theory in
relation to information
systems security, the
battle of cost, risk and
features.

The constant of battle
of proving ROI

The challenges of
Layering security on
after the sale:
cost, complexity of
administration and
true usefulness.
How to Sell Information
     Security (DISCUSSION)
• What has your personal experience
  been with security add on
  products?
• How do you feel about paying for
  virus scanning, when you already
  paid for the Operating System?
• If you were selling a system which
  required a security add on
  component, what approach would
  you take?
• As an IS security decision maker,
  what approach would you take
  with your vendors?
Security Technologies are
         Exciting, But…
In this class you will get hands
on experience with powerful
military grade encryption
technology, you will
use automated Rainbow Tables
to crack top level Administrator
Passwords and you will learn
how to sniff network traffic!

But, we have to start at the beginning, by
gaining an understanding of the threats.
Cyberwar

• Cyber-warfare (also known as
  cybernetic war, or cyberwar)
  is the use of computers and
  the Internet in conducting
  warfare in cyberspace.
Types of Attacks
          Cyber Espionage
The act or practice of obtaining secrets
(sensitive, proprietary of classified
information) from individuals,
competitors, rivals, groups,
governments and enemies for
military, political, or economic
advantage using illegal exploitation
methods via the internet, networks,
software and or computers.
Web Vandalism – The Weapon
      of Mass Irritation
• Attacks that deface web
  pages, or denial-of-service
  attacks. This is normally
  swiftly contained and of little
  harm.
• Distributed Denial-of-Service
  Attacks: Large numbers of
  computers in one country
  launch a DoS attack against
  systems in another country.
Gathering Sensitive or
    Proprietary Information
• Classified information that is
  not handled securely can be
  intercepted and even
  modified, making espionage
  possible from the other side of
  the world. See Titan Rain and
  Moonlight Maze.

• Encryption!
Equipment Disruption

• Military and commercial
  activities that use computers
  and satellites for co-ordination
  are at risk from this type of
  attack. Orders and
  communications can be
  intercepted or replaced,
  putting soldiers at risk
Attacking Critical Infrastructure

• Power, water, fuel,
  communications, commercial
  and transportation are all
  vulnerable to a cyber attack
Information Security Controls

• Two types of controls in all
  information systems
• Technical controls
• Administrative controls
• Most good systems contain a
  combination of both types of
  controls
Technical Controls
• A direct, continuous and
  unavoidable control on the use
  and distribution of data which
  allows, also for the purposes of
  possible audits, the following:
• The direct identification of each
  user in auditable form
• Keeping track, with auditable
  evidence, of the accesses which
  have occurred in the relevant
  period
• The prevention and exclusion of
  any utilization of data and systems
  by subjects who are not authorized
Technical Controls - Examples

• Can you think of any technical
  controls?
• Username/Password
• Building access card
• ATM card, with PIN (dual
  factor)
Benefits of Technical Controls

• Strong and consistent, treat
  everyone equally
• Can be audited with real
  assurance of the truthfulness
  of the data
Drawbacks of Technical Controls

• Costly
• Complex and time consuming
• When they break, they either
  fail open or fail closed, neither
  of which may be desirable
Administrative Controls

• Using policies, procedures,
  safety signs, training or
  supervision, or a combination
  of these, to control risk.
Administrative Controls
          Examples
• Can you think of any
  examples of administrative
  controls?
• Signing out a key
• Policy requiring the shredding
  of documents
• Filling out a check in sheet
  when you enter and leave a
  secure area
Benefits of Administrative
            Controls

• Usually inexpensive
• Easy to implement
• Very flexible
Drawbacks of Administrative
         Controls

• Difficult to enforce
• Difficult to audit
• Impossible to verify
• Easy to evade by a dedicated
  individual
Controls - Summary and
          Conclusions
• Both technical controls and
  administrative controls have
  benefits and drawbacks
• Technical controls are often used
  in highly sensitive systems
• Administrative controls are used in
  lower priority situations
• Hybrid solutions are the most
  common, placing technical controls
  at the front door and
  administrative controls behind
  them. Example: Server Platform
Cyberwar Video

• When watching this video, think
  about the following:
• How real is the threat of
  Cyberwar?
• How does the application of
  Prospect Theory relate to the
  threat of Cyberwar?
• What types of technical and
  administrative controls might help
  mitigate the risks posed by cyber
  attack?
Readings on Cybersecurity

• Might give you some things to
  think about when writing
  Assignment #1
• Cyberwar – Myth or Reality
• Make Vendors Liable for Bugs
• The Truth About Chinese
  Hackers

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Commercial and government cyberwarfare

  • 1. Information Systems 365/765 Lecture 2 Commercial and Government Cyberwarfare
  • 2. Today – Cyber-warfare • Discuss “How to Sell Information Security” article • Introduction to Cyberwar • Discuss technical vs. administrative controls • Watch Frontline video • Discuss written assignment #1
  • 3. Prospect Theory • People react differently to risk and guaranteed outcomes based on whether those outcomes are positive or negative. Known as the Prospect Theory S-Curve
  • 4. Prospect Theory • If someone offers you a guaranteed $500 or a 50% chance at winning $1000, studies show that people tend to pick the guaranteed $500
  • 5. Prospect Theory • If someone told you that you had to surrender $500 or take a 50% chance of surrendering $1000, most people would tend to take the risk of losing $1000 rather than the fixed $500 loss
  • 6. Prospect Theory • When it comes to gain, people are risk averse • When it comes to loss, people embrace risk • What does this mean for IT security, which is almost always sold based on potential to avoid loss?
  • 7. How to Sell Information Security Prospect Theory in relation to information systems security, the battle of cost, risk and features. The constant of battle of proving ROI The challenges of Layering security on after the sale: cost, complexity of administration and true usefulness.
  • 8. How to Sell Information Security (DISCUSSION) • What has your personal experience been with security add on products? • How do you feel about paying for virus scanning, when you already paid for the Operating System? • If you were selling a system which required a security add on component, what approach would you take? • As an IS security decision maker, what approach would you take with your vendors?
  • 9. Security Technologies are Exciting, But… In this class you will get hands on experience with powerful military grade encryption technology, you will use automated Rainbow Tables to crack top level Administrator Passwords and you will learn how to sniff network traffic! But, we have to start at the beginning, by gaining an understanding of the threats.
  • 10. Cyberwar • Cyber-warfare (also known as cybernetic war, or cyberwar) is the use of computers and the Internet in conducting warfare in cyberspace.
  • 11. Types of Attacks Cyber Espionage The act or practice of obtaining secrets (sensitive, proprietary of classified information) from individuals, competitors, rivals, groups, governments and enemies for military, political, or economic advantage using illegal exploitation methods via the internet, networks, software and or computers.
  • 12. Web Vandalism – The Weapon of Mass Irritation • Attacks that deface web pages, or denial-of-service attacks. This is normally swiftly contained and of little harm. • Distributed Denial-of-Service Attacks: Large numbers of computers in one country launch a DoS attack against systems in another country.
  • 13. Gathering Sensitive or Proprietary Information • Classified information that is not handled securely can be intercepted and even modified, making espionage possible from the other side of the world. See Titan Rain and Moonlight Maze. • Encryption!
  • 14. Equipment Disruption • Military and commercial activities that use computers and satellites for co-ordination are at risk from this type of attack. Orders and communications can be intercepted or replaced, putting soldiers at risk
  • 15. Attacking Critical Infrastructure • Power, water, fuel, communications, commercial and transportation are all vulnerable to a cyber attack
  • 16. Information Security Controls • Two types of controls in all information systems • Technical controls • Administrative controls • Most good systems contain a combination of both types of controls
  • 17. Technical Controls • A direct, continuous and unavoidable control on the use and distribution of data which allows, also for the purposes of possible audits, the following: • The direct identification of each user in auditable form • Keeping track, with auditable evidence, of the accesses which have occurred in the relevant period • The prevention and exclusion of any utilization of data and systems by subjects who are not authorized
  • 18. Technical Controls - Examples • Can you think of any technical controls? • Username/Password • Building access card • ATM card, with PIN (dual factor)
  • 19. Benefits of Technical Controls • Strong and consistent, treat everyone equally • Can be audited with real assurance of the truthfulness of the data
  • 20. Drawbacks of Technical Controls • Costly • Complex and time consuming • When they break, they either fail open or fail closed, neither of which may be desirable
  • 21. Administrative Controls • Using policies, procedures, safety signs, training or supervision, or a combination of these, to control risk.
  • 22. Administrative Controls Examples • Can you think of any examples of administrative controls? • Signing out a key • Policy requiring the shredding of documents • Filling out a check in sheet when you enter and leave a secure area
  • 23. Benefits of Administrative Controls • Usually inexpensive • Easy to implement • Very flexible
  • 24. Drawbacks of Administrative Controls • Difficult to enforce • Difficult to audit • Impossible to verify • Easy to evade by a dedicated individual
  • 25. Controls - Summary and Conclusions • Both technical controls and administrative controls have benefits and drawbacks • Technical controls are often used in highly sensitive systems • Administrative controls are used in lower priority situations • Hybrid solutions are the most common, placing technical controls at the front door and administrative controls behind them. Example: Server Platform
  • 26. Cyberwar Video • When watching this video, think about the following: • How real is the threat of Cyberwar? • How does the application of Prospect Theory relate to the threat of Cyberwar? • What types of technical and administrative controls might help mitigate the risks posed by cyber attack?
  • 27. Readings on Cybersecurity • Might give you some things to think about when writing Assignment #1 • Cyberwar – Myth or Reality • Make Vendors Liable for Bugs • The Truth About Chinese Hackers