Managing Information Systems Seventh Canadian Edition. Laudon, Laudon and Brabston. CHAPTER 8 Securing Information Systems

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1 Managing Information Systems Seventh Canadian Edition Laudon, Laudon and Brabston CHAPTER 8 Securing Information Systems Copyright 2015 Pearson Canada Inc. 8-1

2 System Vulnerability and Abuse 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 Copyright 2015 Pearson Canada Inc. 8-2

3 System Vulnerability and Abuse Why systems are vulnerable Accessibility of networks Hardware problems (breakdowns, configuration errors, damage from improper use or crime) Software problems (programming errors, installation errors, unauthorized changes) Disasters Use of networks/computers outside of firm s control Loss and theft of portable devices Copyright 2015 Pearson Canada Inc. 8-3

4 [INSERT FIGURE 8.1] Copyright 2015 Pearson Canada Inc. 8-4

5 Internet Vulnerabilities Network open to anyone E-maiI Attachments with malicious software Transmitting trade secrets Interception Copyright 2015 Pearson Canada Inc. 8-5

6 Wireless Security Challenges Radio frequency bands easy to scan SSIDs (service set identifiers) Identify access points Broadcast multiple times War driving Eavesdroppers drive by buildings and try to detect SSID and gain access to network and resources Continued Copyright 2015 Pearson Canada Inc. 8-6

7 Wireless Security Challenges (cont.) WEP (Wired Equivalent Privacy) Users often fail to implement WEP or stronger systems Copyright 2015 Pearson Canada Inc. 8-7

8 Malicious Software: Viruses, Worms, Trojan Horses, and Spyware Computer viruses: Rogue software programs that attach to other programs in order to be executed, usually without user knowledge or permission Deliver a payload Can spread by attachments Copyright 2015 Pearson Canada Inc. 8-8

9 Malicious Software: Viruses, Worms, Trojan Horses, and Spyware Worms: Programs that copy themselves from one computer to another over networks Can destroy data, programs, and halt operation of computer networks Copyright 2015 Pearson Canada Inc. 8-9

10 Malicious Software: Viruses, Worms, Trojan Horses, and Spyware Trojan Horse: A software program that appears to be benign, but then does something unexpected Often transports a virus into a computer system Name is based on Greek ruse during Trojan war Copyright 2015 Pearson Canada Inc. 8-10

11 Hackers and Computer Crime Hackers: individuals who attempt to gain unauthorized access to a computer system Cracker: a hacker with criminal intent Cybervandalism: intentional disruption, defacement, or destruction of a Web site or system Copyright 2015 Pearson Canada Inc. 8-11

12 Spoofing and Sniffing Spoofing masquerading as someone else, or redirecting a Web link to an unintended address Sniffing an eavesdropping program that monitors information travelling over a network Copyright 2015 Pearson Canada Inc. 8-12

13 Denial of Service (DoS) Attacks DoS: Hackers flood a server with false communications in order to crash the system Often use Botnets Copyright 2015 Pearson Canada Inc. 8-13

14 Computer Crime Computer Crime: violation of criminal law that involves a knowledge of technology for perpetration, investigation, or prosecution Continued Copyright 2015 Pearson Canada Inc. 8-14

15 Computer Crime Identity theft A crime in which the imposter obtains key pieces of personal information Phishing Setting up fake Web sites or sending messages that look legitimate, and using them to ask for confidential data Pharming Redirects users to a bogus web site Continued Copyright 2015 Pearson Canada Inc. 8-15

16 [INSERT TABLE 8.3] Copyright 2015 Pearson Canada Inc. 8-16

17 Computer Crime (cont.) Click Fraud Bogus clicks to drive up pay-per-clicks Copyright 2015 Pearson Canada Inc. 8-17

18 Global Threats Cyberterrorism and Cyberwarfare Exploitation of systems by terrorists Copyright 2015 Pearson Canada Inc. 8-18

19 Internal Threats: Employees Security threats often originate inside an organization E.g. Tricking employees into revealing their passwords by pretending to be legitimate members of the company in need of information Copyright 2015 Pearson Canada Inc. 8-19

20 System Vulnerability Software vulnerability Hidden bugs (program code defects) Flaws can open networks to intruders Copyright 2015 Pearson Canada Inc. 8-20

21 System Vulnerability Patches Small pieces of software to repair flaws Exploits often created faster than patches can be released and implemented Copyright 2015 Pearson Canada Inc. 8-21

22 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 Confidential personal and financial data Trade secrets, new products, strategies A security breach may cut into firm s market value almost immediately Inadequate security and controls also bring forth issues of liability Copyright 2015 Pearson Canada Inc. 8-22

23 Legal and Regulatory Requirements for Electronic Records Management Securely storing and handling recovered electronic data Continued Copyright 2015 Pearson Canada Inc. 8-23

24 Establishing a Framework for Security and Control Information System Controls General controls apply to all computerized applications and consist of a combination of hardware, software, and manual procedures Application controls Input controls Processing controls Output controls Copyright 2015 Pearson Canada Inc. 8-24

25 Risk Assessment Risk Assessment Determine level of risk to the firm in the case of improper controls Security policy Acceptable Use Policy (AUP) Authorization Policies Authorization Management systems Copyright 2015 Pearson Canada Inc. 8-25

26 Disaster Recovery Planning and Business Continuity Planning Disaster recovery planning devises plans for the restoration of computing and communications services after they have been disrupted Copyright 2015 Pearson Canada Inc. 8-26

27 Disaster Recovery Planning and Business Continuity Planning Business continuity planning focuses on how the company can restore business operations after a disaster strikes. identifies critical business processes and determines action plans for handling missioncritical functions if systems go down Copyright 2015 Pearson Canada Inc. 8-27

28 The Role of Auditing examines the firm s overall security environment as well as controls governing individual information systems assesses the financial and organizational impact of each threat Copyright 2015 Pearson Canada Inc. 8-28

29 Identity Management and Authentication Authentication the ability to know that a person is who he or she claims to be Copyright 2015 Pearson Canada Inc. 8-29

30 Firewalls, Intrusion Detection Systems, and Antivirus Software Firewalls: Hardware and software controlling flow of incoming and outgoing network traffic Packet Filtering (examines fields in headers of data packets within network) Stateful Inspection (whether packets are part of an ongoing dialogue between sender and receiver) Copyright 2015 Pearson Canada Inc. 8-30

31 Firewalls, Intrusion Detection Systems and Antivirus Software Intrusion Detection Systems Full-time monitoring tools placed at the most vulnerable points of the corporate networks to detect and deter intruders Antivirus and Antispyware Checks computer systems for viruses Copyright 2015 Pearson Canada Inc. 8-31

32 Securing Wireless Networks Encryption and Public Key Infrastructure Coding and scrambling of messages to prevent unauthorized access to, or understanding of, the data being transmitted Copyright 2015 Pearson Canada Inc. 8-32

33 Securing Wireless Networks Public key encryption: Uses two different keys, one private and one public. The keys are mathematically related so that data encrypted with one key can be decrypted using only the other key Copyright 2015 Pearson Canada Inc. 8-33

34 [INSERT FIGURE 8.6] Copyright 2015 Pearson Canada Inc. 8-34

35 Ensuring System Availability Fault-tolerant computing High-availability computing Controlling Network Traffic Deep packet inspection Security Outsourcing Copyright 2015 Pearson Canada Inc. 8-35

36 Security Issues for Managers Security in the Cloud Securing Mobile Platforms Ensuring Software Quality Security and control must become a more visible priority and a responsibility of everyone in the organization; commitment from top management as an area vital to all aspects of the business Copyright 2015 Pearson Canada Inc. 8-36

37 Managing Information Systems Seventh Canadian Edition Laudon, Laudon and Brabston CHAPTER 8 Securing Information Systems Copyright 2015 Pearson Canada Inc. 8-37

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