ISTP TU08 - Securing Information Systems PDF

INFORMATION SYSTEMS: THEORY & PRACTICE TU8: Securing Information Systems Prof. Dr. Paul Drews Chapter 8 – Intro Case Study 2 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Learning Objectives ▪ Explain why information systems are vulnerable to destruction, error, and ab...

INFORMATION SYSTEMS: THEORY & PRACTICE TU8: Securing Information Systems Prof. Dr. Paul Drews Chapter 8 – Intro Case Study 2 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Learning Objectives ▪ Explain why information systems are vulnerable to destruction, error, and abuse. ▪ Describe the business value of security and control. ▪ Describe the components of an organizational framework for security and control. ▪ Describe the most important tools and technologies for safeguarding information resources. 3 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… University of Gießen Security Incident (Decemer 2019) – offline for several weeks 4 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… District of Vorpommern-Rügen (2023) & District of Anhalt-Bitterfeld (2022) & District Ludwigslust-Parchim (2021) 5 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… Equifax data breach (data loss of 143 U.S. citizens) (2017) 6 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… Bundestag (German parliament) offline due to hacker attack (2015) 7 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… 1.3 Million Vodafone routers insecure (2015) 8 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… Backdoors in network switches – Secret service involved? (2015) 9 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Some recent cases… Belgium network provider – hacked by british intelligence agency? (2014) 10 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Agenda 1. System Vulnerability and Abuse 2. Business Value of Security and Control 3. Organizational Frameworks for Security and Control 4. Tools and Technologies for Safeguarding Information Resources 11 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS 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 12 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS 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 13 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Contemporary Security Challenges and Vulnerabilities FIGURE 8-1 The architecture of a Web-based application typically includes a Web client, a server, and corporate information systems linked to databases. Each of these components presents security challenges and vulnerabilities. Floods, fires, power failures, and other electrical problems can cause disruptions at any point in the network. 14 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Internet vulnerabilities ▪ Network open to anyone ▪ Size of Internet means abuses can have wide impact ▪ Use of fixed Internet addresses with cable / DSL modems creates fixed targets for hackers ▪ Unencrypted VOIP ▪ E-mail, P2P, IM ▪ Interception ▪ Attachments with malicious software ▪ Transmitting trade secrets 15 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Wireless security challenges ▪ Radio frequency bands easy to scan ▪ SSIDs (service set identifiers) ▪ Identify access points, broadcast multiple times, ▪ can be identified by sniffer programs ▪ War driving ▪ Eavesdroppers drive by buildings and try to detect SSID and Many Wi-Fi networks can be penetrated gain access to network and resources easily by intruders using sniffer programs ▪ Once access point is breached, intruder can gain access to to obtain an address to access the resources of a network without networked drives and files authorization. ▪ Rogue access points FIGURE 8-2 16 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Malware (malicious software) ▪ Viruses ▪ Rogue software program that attaches itself to other software programs or data files in order to be executed ▪ Worms ▪ Independent programs that copy themselves from one computer to other computers over a network ▪ Worms and viruses spread by ▪ Downloads and drive-by downloads ▪ E-mail, IM attachments ▪ Mobile device and social network malware 17 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Malware (cont.) ▪ Smartphones as vulnerable as computers ▪ Study finds 13,000 types of smartphone malware ▪ Trojan horses ▪ Software that appears benign but does something other than expected ▪ SQL injection attacks ▪ Hackers submit data to Web forms that exploits site’s unprotected software and sends rogue SQL query to database ▪ Ransomware 18 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Ransomware: WannaCry Source: media-cdn.sueddeutsche.de/image/sz.1.3518211 19 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Malware (cont.) ▪ 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 ▪ Other types: ▪ Reset browser home page ▪ Redirect search requests ▪ Slow computer performance by taking up memory 20 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse TABLE 8-1 21 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Hackers and computer crime ▪ Hackers vs. crackers ▪ Activities include: ▪ System intrusion ▪ System damage ▪ Cybervandalism ▪ Intentional disruption, defacement, destruction of website or corporate information system 22 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse 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 Sniffing ▪ Eavesdropping program that monitors information traveling over network ▪ Enables hackers to steal proprietary information such as e-mail, company files, and so on 23 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Denial-of-service attacks (DoS) ▪ Flooding server with thousands of false requests to crash the network Distributed denial-of-service attacks (DDoS) ▪ Use of numerous computers to launch a DoS Botnets ▪ Networks of “zombie” PCs infiltrated by bot malware Spam 24 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS DDoS-Attack Source: cdn.keycdn.com/support/wp-content/uploads/2015/11/ddos-attack.webp 25 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Computer crime ▪ Defined as “any violations of criminal law that involve a knowledge of computer technology for their perpetration, investigation, or prosecution” ▪ Computer may be target of crime, for example: ▪ Breaching confidentiality of protected computerized data ▪ Accessing a computer system without authority ▪ Computer may be instrument of crime, for example: ▪ Theft of trade secrets ▪ Using e-mail for threats or harassment 26 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Identity theft ▪ Theft of personal Information (social security ID, driver’s license, or credit card numbers) to impersonate someone else Phishing ▪ Setting up fake websites or sending e-mail messages that look like legitimate businesses to ask users for confidential personal data Evil twins ▪ Wireless networks that pretend to offer trustworthy Wi-Fi connections to the Internet 27 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse 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 Cyberterrorism and Cyberwarfare 28 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse 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 ▪ Both end users and information systems specialists are sources of risk 29 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS System Vulnerability and Abuse Software vulnerability ▪ Commercial software contains flaws that create security vulnerabilities ▪ Hidden bugs (program code defects) ▪ Zero defects cannot be achieved ▪ Flaws can open networks to intruders ▪ Patches ▪ Small pieces of software to repair flaws ▪ Patch management 30 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Agenda 1. System Vulnerability and Abuse 2. Business Value of Security and Control 3. Organizational Frameworks for Security and Control 4. Tools and Technologies for Safeguarding Information Resources 31 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Business Value of Security and Control ▪ Failed computer systems can lead to significant or total loss of business function. ▪ Firms now are more vulnerable than ever. ▪ Confidential personal and financial data ▪ Trade secrets, new products, strategies ▪ A security breach may cut into a firm’s market value almost immediately. ▪ Inadequate security and controls also bring forth issues of liability. 32 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Data Breaches TABLE 8-3 33 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Business Value of Security and Control Legal and regulatory requirements for electronic records management and privacy protection ▪ HIPAA: Medical security and privacy rules and procedures ▪ 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 34 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Business Value of Security and Control Electronic evidence ▪ Evidence for white collar crimes often in digital form ▪ Data on computers, e-mail, instant messages, e-commerce transactions ▪ Proper control of data can save time and 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 35 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Agenda 1. System Vulnerability and Abuse 2. Business Value of Security and Control 3. Organizational Frameworks for Security and Control 4. Tools and Technologies for Safeguarding Information Resources 36 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Information systems controls ▪ Manual and automated controls ▪ General and application 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 37 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Types of general controls ▪ Software controls ▪ Hardware controls ▪ Computer operations controls ▪ Data security controls ▪ System development controls ▪ Administrative controls 38 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control TABLE 8-4 39 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Application controls ▪ Specific controls unique to each computerized application, such as payroll or order processing ▪ Include both automated and manual procedures ▪ Ensure that only authorized data are completely and accurately processed by that application ▪ Include ▪ Input controls ▪ Processing controls ▪ Output controls 40 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Risk assessment: Determines level of risk to firm if specific activity or process is not properly controlled ▪ Types of threat ▪ Probability of occurrence during year ▪ Potential losses, value of threat ▪ Expected annual loss TABLE 8-5 Online Order Processing Risk Assessment 41 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Security policy ▪ Ranks information risks, identifies security goals and 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 42 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Identity management ▪ Business processes and tools to identify valid users of system and control access ▪ Identifies and authorizes different categories of users ▪ Specifies which portion of system users can access ▪ Authenticating users and protects identities ▪ Identity management systems ▪ Captures access rules for different levels of users 43 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Security Profiles for a Personnel System These two examples represent two security profiles or data security patterns that might be found in a personnel system. Depending on the security profile, a user would have certain restrictions on access to various systems, locations, or data in an organization. FIGURE 8-3 44 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control ▪ 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 45 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Organizational Frameworks for Security and Control Information systems audit ▪ Examines firm’s overall security environment as well as controls governing individual information systems ▪ Review technologies, procedures, documentation, training, and personnel ▪ May even simulate disaster to test responses of technology, IS staff, other employees ▪ List and rank control weaknesses and the probability of occurrence ▪ Assess financial and organizational impact of each threat 46 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Sample Auditor’s List of Control Weaknesses This chart is a sample page from a list of control weaknesses that an auditor might find in a loan system in a local commercial bank. This form helps auditors record and evaluate control weaknesses and shows the results of discussing those weaknesses with management, as well as any corrective actions taken by management. FIGURE 8-4 47 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS COBIT 5 – An IT Governance Framework 48 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Agenda 1. System Vulnerability and Abuse 2. Business Value of Security and Control 3. Organizational Frameworks for Security and Control 4. Tools and Technologies for Safeguarding Information Resources 49 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Identity management software ▪ Automates keeping track of all users and privileges ▪ Authenticates users, protecting identities, controlling access Authentication ▪ Password systems ▪ Tokens A „Token“ for Authentication Source: RSA ▪ Smart cards ▪ Biometric authentication ▪ Two-factor authentication 50 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Firewall ▪ Combination of hardware and software that prevents unauthorized users from accessing private networks ▪ Technologies include: ▪ Static packet filtering ▪ Stateful inspection ▪ Network address translation (NAT) ▪ Application proxy filtering 51 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS A Corporate Firewall The firewall is placed between the firm’s private network and the public Internet or another distrusted network to protect against unauthorized traffic. FIGURE 8-5 52 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources ▪ Intrusion detection system ▪ Monitors 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 ▪ Requires continual updating ▪ Unified threat management (UTM) systems 53 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Securing wireless networks ▪ WEP security ▪ Static encryption keys are relatively easy to crack ▪ Improved if used in conjunction with VPN ▪ Wi-Fi Alliance finalized WPA2 specification, replacing WEP with stronger standards ▪ Continually changing, longer encryption keys 54 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources 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) 55 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Two methods of encryption of messages ▪ Symmetric key encryption ▪ Sender and receiver use single, shared key ▪ Standard used today: AES (Advanced Encryption Standard) ▪ 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 ▪ Protocols based upon PKE: SSL/TLS, SSH, IMAPS, etc. 56 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Public Key Encryption FIGURE 8-6 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 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. 57 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS PGP Source: upload.wikimedia.org/wikipedia/commons/4/4d/PGP_diagram.svg 58 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources 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 59 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Digital Certificates Digital certificates help establish the identity of people or electronic assets. They protect online transactions by providing secure, encrypted, online communication. FIGURE 8-7 60 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Ensuring system availability ▪ Online transaction processing requires 100% availability, no downtime Fault-tolerant computer systems ▪ For continuous availability, for example, stock markets ▪ Contain redundant hardware, software, and power supply components that create an environment that provides continuous, uninterrupted service 61 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Controlling network traffic ▪ Deep packet inspection (DPI) ▪ Examines data files and sorts low priority material ▪ Can block video and music downloads Security outsourcing ▪ Managed security service providers (MSSPs) 62 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Security in the cloud ▪ Responsibility for security resides with company owning the data ▪ Firms must ensure providers provides adequate protection: ▪ Where data are stored ▪ Meeting corporate requirements, legal privacy laws ▪ Segregation of data from other clients ▪ Audits and security certifications ▪ Service level agreements (SLAs) 63 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources Securing mobile platforms ▪ Security policies should include and cover any special requirements for mobile devices ▪ Guidelines for use of platforms and applications ▪ Mobile device management tools ▪ Authorization ▪ Inventory records ▪ Control updates ▪ Lock down/erase lost devices ▪ Encryption ▪ Software for segregating corporate data on devices 64 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tools and Technologies for Safeguarding Information Resources 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 65 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS Tasks for this week ▪ T8-1. Please actively read chapter 8 - including the case studies. (3-4 hours) ▪ T8-2. Discuss the following statement: "IT Security isn’t simply a technology issue, it’s a business issue." Please post your statement in the forum. (15 minutes) 66 | ISTP | TU 8 | SECURING INFORMATION SYSTEMS | PROF. DR. PAUL DREWS CONTACT PROF. DR. PAUL DREWS Institute of Information Systems Universitätsallee 1 | 21335 Lüneburg Fon 04131.677-1993 | [email protected] www.leuphana.de/institute/iis/personen/paul-drews