Securing Information Systems
Objectives
• Why are information systems vulnerable to destruction, error, and abuse? • What is the business value of security and control? • What are the components of an organizational framework for security and control? • Evaluate the most important tools and technologies for safeguarding information resources.
Online Games Need Security, Too • Problem: Threat of attacks from hackers hoping to steal information or gaming assets. • Solutions: Deploy an advanced security system to identify threats and reduce hacking attempts. • NetContinuum’s NC-2000 AG firewall and Cenzic’s ClickToSecure service work in tandem to minimize the chance of a security breach. • Demonstrates IT’s role in combating cyber crime. • Illustrates digital technology’s role in achieving security on the Web.

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System Vulnerability and Abuse • An unprotected computer connected to Internet may be disabled within seconds • Security: • Policies, procedures and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems • Controls: • Methods, policies, and organizational procedures that ensure safety of organization’s assets; accuracy and reliability of its accounting records; and operational adherence to management standards
Why Systems Are Vulnerable • Hardware problems • Breakdowns, configuration errors, damage from improper use or crime • Software problems • Programming errors, installation errors, unauthorized changes) • Disasters • Power failures, flood, fires, etc. • Use of networks and computers outside of firm’s control • E.g. with domestic or offshore outsourcing vendors • Wi-Fi Security Challenges • Many Wi-Fi networks can be penetrated easily by intruders using sniffer programs to obtain an address to access the resources of a network without authorization.
Malicious Software: Viruses, Worms, Trojan Horses, and Spyware • Malware • Viruses • Rogue software program that attaches itself to other software programs or data files in order to be executed • Worms • Independent computer programs that copy themselves from one computer to other computers over a network. • Trojan horses • Software program that appears to be benign but then does something other than expected. • Spyware • Small programs install themselves surreptitiously on computers to monitor user Web surfing activity and serve up advertising • Key loggers • Record every keystroke on computer to steal serial numbers, passwords, launch Internet attacks
Hackers and Computer Crime • Hackers vs. crackers • Activities include • System intrusion • System damage • Cybervandalism • Intentional disruption, defacement, destruction of Web site or corporate information system • Spoofing • Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else • Redirecting Web link to address different from intended one, with site masquerading as intended destination • Sniffer • Eavesdropping program that monitors information traveling over network • Enables hackers to steal proprietary information such as e-mail, company files, etc. • Pharming • Redirects users to a bogus Web page, even when individual types correct Web page address into his or her browser • Click fraud • Occurs when individual or computer program fraudulently clicks on online ad without any intention of learning more about the advertiser or making a purchase
Internal Threats: Employees • Security threats often originate inside an organization • Inside knowledge • Sloppy security procedures • User lack of knowledge • Social engineering: • Tricking employees into revealing their passwords by pretending to be legitimate members of the company in need of information

Data Thefts: The Biggest Worry and Insider Threats
Here are a few examples of possible criminal acts from an insider of a company: • A computer staff illegally accesses employees’ e mails to steal information that could be used for malicious intent • An employee who is angry about the low bonus he receives brings down the entire company’s computer system by deleted sensitive data records • A system administrator is not happy with his life and decides to change the code of legacy systems, creating bad data • A marketing salesperson steals sensitive data and sells them to a competitor

Software Vulnerability • Commercial software contains flaws that create security vulnerabilities • Hidden bugs (program code defects) • Zero defects cannot be achieved because complete testing is not possible with large programs • Flaws can open networks to intruders • Patches • Vendors release small pieces of software to repair flaws • However, amount of software in use can mean exploits created faster than patches be released and implemented
Business Value of Security and Control • Failed computer systems can lead to significant or total loss of business function • Firms now more vulnerable than ever • A security breach may cut into firm’s market value almost immediately • Inadequate security and controls also bring forth issues of liability
Legal and Regulatory Requirements for Electronic Records Management • Firms face new legal obligations for the retention and storage of electronic records as well as for privacy protection • HIPAA: Medical security and privacy rules and procedures (The Health Insurance Portability & Accountability Act of 1996 (HIPAA), Public Law was passed by Congress) • Gramm-Leach-Bliley Act: Requires financial institutions to ensure the security and confidentiality of customer data • Sarbanes-Oxley Act: Imposes responsibility on companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally
Electronic Evidence and Computer Forensics • Evidence for white collar crimes often found in digital form • Data stored on computer devices, e-mail, instant messages, e-commerce transactions • Proper control of data can save time, money when responding to legal discovery request • Computer forensics: • Scientific collection, examination, authentication, preservation, and analysis of data from computer storage media for use as evidence in court of law • Includes recovery of ambient and hidden data
Establishing a Framework for Security and Control • Information systems controls • General controls • Govern design, security, and use of computer programs and security of data files in general throughout organization’s information technology infrastructure. • Apply to all computerized applications • Combination of hardware, software, and manual procedures to create overall control environment • Security policy • Ranks information risks, identifies acceptable security goals, and identifies mechanisms for achieving these goals • Drives other policies • Acceptable use policy (AUP) • Defines acceptable uses of firm’s information resources and computing equipment • Authorization policies • Determine differing levels of user access to information assets • Authorization management systems • Establish where and when a user is permitted to access certain parts of a Web site or corporate database. • Allow each user access only to those portions of system that person is permitted to enter, based on information established by set of access rules, profile

Disaster Recovery Planning and Business Continuity Planning • Disaster recovery planning: Devises plans for restoration of disrupted services • Business continuity planning: Focuses on restoring business operations after disaster • Both types of plans needed to identify firm’s most critical systems • Business impact analysis to determine impact of an outage • Management must determine which systems restored first

The Role of Auditing • MIS audit • Examines firm’s overall security environment as well as controls governing individual information systems • Reviews technologies, procedures, documentation, training, and personnel. • May even simulate disaster to test response of technology, IS staff, other employees. • Lists and ranks all control weaknesses and estimates probability of their occurrence. • Assesses financial and organizational impact of each threat

Technologies and Tools for Security
Access Control • Policies and procedures to prevent improper access to systems by unauthorized insiders and outsiders • Authorization • Authentication: Verifying the authenticity of users. E.g., verify authenticity of digital signature; biometric authentication (finger printing) • Password systems • Tokens • Smart cards • Biometric authentication

Firewalls, Intrusion Detection Systems, and Antivirus Software • Firewall: • Combination of hardware and software that prevents unauthorized users from accessing private networks • Technologies include: • Static packet filtering • Network address translation (NAT) • Application proxy filtering

A Corporate Firewall
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The firewall is placed between the firm’s private network and the public Internet or another distrusted network to protect against unauthorized traffic. Encryption and Public Key Infrastructure
Figure 7-5

• Intrusion detection systems: • Monitor hot spots on corporate networks to detect and deter intruders • Examines events as they are happening to discover attacks in progress • Antivirus and antispyware software: • Checks computers for presence of malware and can often eliminate it as well • Require continual updating

Securing Wireless Networks • WEP security can be improved: • Activating it • Assigning unique name to network’s SSID • Using it with VPN technology • Wi-Fi Alliance finalized WAP2 specification, replacing WEP with stronger standards • Continually changing keys • Encrypted authentication system with central server

Encryption and Public Key Infrastructure • Encryption: • Transforming text or data into cipher text that cannot be read by unintended recipients • Two methods for encryption on networks • Secure Sockets Layer (SSL) and successor Transport Layer Security (TLS) • Secure Hypertext Transfer Protocol (S-HTTP) • Two methods of encryption • Symmetric key encryption • Sender and receiver use single, shared key • Public key encryption • Uses two, mathematically related keys: Public key and private key • Sender encrypts message with recipient’s public key • Recipient decrypts with private key
Public Key Encryption
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A public key encryption system can be viewed as a series of public and private keys that lock data when they are transmitted and unlock the data when they are received. The sender locates the recipient’s public key in a directory and uses it to encrypt a message. The message is sent in encrypted form over the Internet or a private network. When the encrypted message arrives, the recipient uses his or her private key to decrypt the data and read the message.
Figure 7-6 • Digital certificate: • Data file used to establish the identity of users and electronic assets for protection of online transactions • Uses a trusted third party, certification authority (CA), to validate a user’s identity • CA verifies user’s identity, stores information in CA server, which generates encrypted digital certificate containing owner ID information and copy of owner’s public key • Public key infrastructure (PKI) • Use of public key cryptography working with certificate authority • Widely used in e-commerce
Digital Certificates
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Digital certificates help establish the identity of people or electronic assets. They protect online transactions by providing secure, encrypted, online communication.
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Ensuring System Availability • Online transaction processing requires 100% availability, no downtime • Fault-tolerant computer systems • For continuous availability, e.g. stock markets • Contain redundant hardware, software, and power supply components that create an environment that provides continuous, uninterrupted service • High-availability computing • Helps recover quickly from crash • Minimizes, does not eliminate downtime • Recovery-oriented computing • Designing systems that recover quickly with capabilities to help operators pinpoint and correct of faults in multi-component systems • Controlling network traffic • Deep packet inspection (DPI) (video and music blocking) • Security outsourcing • Managed security service providers (MSSPs)
Ensuring Software Quality • Software Metrics: Objective assessments of system in form of quantified measurements • Number of transactions • Online response time • Payroll checks printed per hour • Known bugs per hundred lines of code • Early and regular testing • Walkthrough: Review of specification or design document by small group of qualified people • Debugging: Process by which errors are eliminated