Management Information Systems PDF

Management Information Systems: Managing the Digital Firm Sixteenth Edition Chapter 8 Securing Information Systems Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Learning...

Management Information Systems: Managing the Digital Firm Sixteenth Edition Chapter 8 Securing Information Systems Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Learning Objectives 8.1 Why are information systems vulnerable to destruction, error, and abuse? 8.2 What is the business value of security and control? 8.3 What are the components of an organizational framework for security and control? 8.4 What are the most important tools and technologies for safeguarding information resources? Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Why Systems are Vulnerable (1 of 2) 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 © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Why Systems are Vulnerable (2 of 2) 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 © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.1 Contemporary Security Challenges and Vulnerabilities Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Internet Vulnerabilities Network open to anyone Size of Internet means abuses can have wide impact Use of fixed Internet addresses with cable / DS L modems creates fixed targets for hackers Unencrypted VO I P E-mail, P2P, I M – Interception – Attachments with malicious software – Transmitting trade secrets Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Wireless Security Challenges Radio frequency bands easy to scan SSI Ds (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 S SI D and gain access to network and resources – Once access point is breached, intruder can gain access to networked drives and files Rogue access points Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.2 Wi-Fi Security Challenges Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Malicious Software: Viruses, Worms, Trojan Horses, and Spyware (1 of 2) Malware (malicious software) Viruses Worms Worms and viruses spread by – Downloads and drive-by downloads – E-mail, I M attachments Mobile device malware Social network malware Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Malicious Software: Viruses, Worms, Trojan Horses, and Spyware (2 of 2) Trojan horse SQ L injection attacks Ransomware Spyware – Key loggers – Other types  Reset browser home page  Redirect search requests  Slow computer performance by taking up memory Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Hackers and Computer Crime (1 of 3) Hackers v s. crackers Activities include: – System intrusion – System damage – Cybervandalism  Intentional disruption, defacement, destruction of website or corporate information system Spoofing and sniffing Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Hackers and Computer Crime (2 of 3) Denial-of-service attacks (Do S) Distributed denial-of-service attacks (DDo S) Botnets Spam Computer crime – Computer may be target of crime – Computer may be instrument of crime Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Hackers and Computer Crime (3 of 3) Identity theft – Phishing – Evil twins – Pharming Click fraud Cyberterrorism Cyberwarfare Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Internal Threats: Employees Security threats often originate inside an organization Inside knowledge Sloppy security procedures – User lack of knowledge Social engineering Both end users and information systems specialists are sources of risk Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Software Vulnerability Commercial software contains flaws that create security vulnerabilities – Bugs (program code defects) – Zero defects cannot be achieved – Flaws can open networks to intruders Zero-day vulnerabilities Patches – Small pieces of software to repair flaws – Patch management Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved What is the 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Legal and Regulatory Requirements for Electronic Records Management HIPA A – 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Electronic Evidence and Computer Forensics Electronic evidence – Evidence for white collar crimes often in digital form – 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 – Recovery of ambient data Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Information Systems Controls May be automated or manual General controls – Govern design, security, and use of computer programs and security of data files in general throughout organization – Software controls, hardware controls, computer operations controls, data security controls, system development controls, administrative controls, Application controls – Controls unique to each computerized application – Input controls, processing controls, output controls Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Table 8.5 Online Order Processing Risk Assessment Exposure Probability of Loss Range Expected Annual Occurrence (Average) ($) Loss ($) Power failure 30% $5,000 − $200,000 $30,750 ($102,500) Embezzlement 5% $1,000 − $50,000 $1,275 ($25,500) User error 98% $200 − $40,000 $19,698 ($20,100) Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Security Policy Ranks information risks, identifies security goals and mechanisms for achieving these goals Drives other policies Acceptable use policy (AU P) – Defines acceptable uses of firm’s information resources and computing equipment Identity management – Identifying valid users – Controlling access Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.3 Access Rules for a Personnel System Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved The Role of Auditing Information systems audit – Examines firm’s overall security environment as well as controls governing individual information systems Security audits – Review technologies, procedures, documentation, training, and personnel – May even simulate disaster to test responses List and rank control weaknesses and the probability of occurrence Assess financial and organizational impact of each threat Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.4 Sample Auditor’s List of Control Weaknesses Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Tools and Technologies for Safeguarding Information Systems (1 of 3) Identity management software – Automates keeping track of all users and privileges – Authenticates users, protecting identities, controlling access Authentication – Password systems – Tokens – Smart cards – Biometric authentication – Two-factor authentication Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Tools and Technologies for Safeguarding Information Systems (2 of 3) Firewall – Combination of hardware and software that prevents unauthorized users from accessing private networks – Packet filtering – Stateful inspection – Network address translation (NA T) – Application proxy filtering Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.5 A Corporate Firewall Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Tools and Technologies for Safeguarding Information Systems (3 of 3) Intrusion detection system – Monitors hot spots on corporate networks to detect and deter intruders Antivirus and antispyware software – Checks computers for presence of malware and can often eliminate it as well – Requires continual updating Unified threat management (UT M) systems Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Securing Wireless Networks W E P security – Static encryption keys are relatively easy to crack – Improved if used in conjunction with VP N W PA 2 specification – Replaces W E P with stronger standards – Continually changing, longer encryption keys Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Encryption and Public Key Infrastructure (1 of 3) Encryption – Transforming text or data into cipher text that cannot be read by unintended recipients – Two methods for encryption on networks  Secure Sockets Layer (SS L) and successor Transport Layer Security (TL S)  Secure Hypertext Transfer Protocol (S-HTT P) Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Encryption and Public Key Infrastructure (2 of 3) Two methods of encryption of messages – 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.6 Public Key Encryption Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Encryption and Public Key Infrastructure (3 of 3) 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 (C A), to validate a user's identity – C A verifies user’s identity, stores information in C A server, which generates encrypted digital certificate containing owner I D information and copy of owner’s public key Public key infrastructure (PK I) – Use of public key cryptography working with certificate authority – Widely used in e-commerce Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 8.7 Digital Certificates Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Ensuring System Availability Online transaction processing requires 100% availability Fault-tolerant computer systems – Contain redundant hardware, software, and power supply components that create an environment that provides continuous, uninterrupted service Deep packet inspection Security outsourcing – Managed security service providers (M SSP s) Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Security Issues for Cloud Computing and the Mobile Digital Platform (1 of 2) Security in the cloud – Responsibility for security resides with company owning the data – Firms must ensure providers provide 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 (SLA s) Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Security Issues for Cloud Computing and the Mobile Digital Platform (2 of 2) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved