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McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Security and Ethical ChallengesSecurity and Ethical Challenges

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• Identify several ethical issues in how the use of information technologies in business affects• Employment• Individuality• Working conditions• Privacy• Crime• Health• Solutions to societal problems

Learning ObjectivesLearning Objectives

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Learning ObjectivesLearning Objectives

• Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology

• Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of information technology

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Case 1: Cyberscams and CybercriminalsCase 1: Cyberscams and Cybercriminals

• Cyberscams are today’s fastest-growing criminal niche• 87 percent of companies surveyed reported

a security incident• The U.S. Federal Trade Commission says

identity theft is its top complaint• eBay has 60 people combating fraud;

Microsoft has 65• Stolen credit card account numbers are

regularly sold online

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Case Study QuestionsCase Study Questions

• What are several reasons why “cyberscams are today’s fastest-growing criminal niche”?• Explain why the reasons you give contribute

to the growth of cyberscams

• What are several security measures that could be implemented to combat the spread of cyberscams?• Explain why your suggestions would be

effective in limiting the spread of cyberscams

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• Which one or two of the four top cybercriminals described in this case poses the greatest threat to businesses? To consumers?• Explain the reasons for your choices, and how

businesses and consumers can protect themselves from these cyberscammers

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IT Security, Ethics, and SocietyIT Security, Ethics, and Society

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IT Security, Ethics, and SocietyIT Security, Ethics, and Society

• Information technology has both beneficial and detrimental effects on society and people• Manage work activities to minimize the

detrimental effects of information technology• Optimize the beneficial effects

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Business EthicsBusiness Ethics

• Ethics questions that managers confront as part of their daily business decision making include• Equity• Rights• Honesty• Exercise of corporate power

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Categories of Ethical Business IssuesCategories of Ethical Business Issues

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Corporate Social Responsibility TheoriesCorporate Social Responsibility Theories

• Stockholder Theory• Managers are agents of the stockholders• Their only ethical responsibility is to increase

the profits of the business without violating the law or engaging in fraudulent practices

• Social Contract Theory• Companies have ethical responsibilities to all

members of society, who allow corporations to exist

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Corporate Social Responsibility TheoriesCorporate Social Responsibility Theories

• Stakeholder Theory• Managers have an ethical responsibility to

manage a firm for the benefit of all its stakeholders

• Stakeholders are all individuals and groups that have a stake in, or claim on, a company

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Principles of Technology EthicsPrinciples of Technology Ethics

• Proportionality• The good achieved by the technology must

outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk

• Informed Consent• Those affected by the technology should

understand and accept the risks

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Principles of Technology EthicsPrinciples of Technology Ethics

• Justice• The benefits and burdens of the technology

should be distributed fairly. • Those who benefit should bear their fair share

of the risks, and those who do not benefit should not suffer a significant increase in risk

• Minimized Risk • Even if judged acceptable by the other three

guidelines, the technology must be implemented so as to avoid all unnecessary risk

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AITP Standards of Professional ConductAITP Standards of Professional Conduct

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Responsible Professional GuidelinesResponsible Professional Guidelines

• A responsible professional• Acts with integrity• Increases personal competence• Sets high standards of personal performance• Accepts responsibility for his/her work• Advances the health, privacy, and general

welfare of the public

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Computer CrimeComputer Crime

• Computer crime includes• Unauthorized use, access, modification, or

destruction of hardware, software, data, or network resources

• The unauthorized release of information• The unauthorized copying of software• Denying an end user access to his/her own

hardware, software, data, or network resources• Using or conspiring to use computer or network

resources illegally to obtain information or tangible property

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Cybercrime Protection Measures Cybercrime Protection Measures

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HackingHacking

• Hacking is • The obsessive use of computers• The unauthorized access and use of networked

computer systems

• Electronic Breaking and Entering• Hacking into a computer system and reading

files, but neither stealing nor damaging anything

• Cracker• A malicious or criminal hacker who maintains

knowledge of the vulnerabilities found for private advantage

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Common Hacking TacticsCommon Hacking Tactics

• Denial of Service• Hammering a website’s equipment with too

many requests for information• Clogging the system, slowing performance,

or crashing the site

• Scans• Widespread probes of the Internet to determine

types of computers, services, and connections• Looking for weaknesses

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• Sniffer• Programs that search individual packets of

data as they pass through the Internet• Capturing passwords or entire contents

• Spoofing• Faking an e-mail address or Web page to trick

users into passing along critical information like passwords or credit card numbers

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• Trojan House• A program that, unknown to the user, contains

instructions that exploit a known vulnerability in some software

• Back Doors• A hidden point of entry to be used in case the

original entry point is detected or blocked

• Malicious Applets• Tiny Java programs that misuse your computer’s

resources, modify files on the hard disk, send fake email, or steal passwords

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• War Dialing• Programs that automatically dial thousands of

telephone numbers in search of a way in through a modem connection

• Logic Bombs• An instruction in a computer program that

triggers a malicious act

• Buffer Overflow• Crashing or gaining control of a computer by

sending too much data to buffer memory

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• Password Crackers• Software that can guess passwords

• Social Engineering• Gaining access to computer systems by talking

unsuspecting company employees out of valuable information, such as passwords

• Dumpster Diving• Sifting through a company’s garbage to find

information to help break into their computers

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Cyber TheftCyber Theft

• Many computer crimes involve the theft of money

• The majority are “inside jobs” that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved

• Many attacks occur through the Internet

• Most companies don’t reveal that they have been targets or victims of cybercrime

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Unauthorized Use at WorkUnauthorized Use at Work

• Unauthorized use of computer systems and networks is time and resource theft• Doing private consulting• Doing personal finances• Playing video games• Unauthorized use of the Internet or company

networks

• Sniffers• Used to monitor network traffic or capacity• Find evidence of improper use

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Internet Abuses in the WorkplaceInternet Abuses in the Workplace

• General email abuses• Unauthorized usage and access• Copyright infringement/plagiarism• Newsgroup postings• Transmission of confidential data• Pornography• Hacking• Non-work-related download/upload• Leisure use of the Internet• Use of external ISPs• Moonlighting

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Software PiracySoftware Piracy

• Software Piracy• Unauthorized copying of computer programs

• Licensing• Purchasing software is really a payment

for a license for fair use• Site license allows a certain number of copies

A third of the software industry’s revenues are

lost to piracy

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Theft of Intellectual PropertyTheft of Intellectual Property

• Intellectual Property• Copyrighted material• Includes such things as music, videos, images,

articles, books, and software

• Copyright Infringement is Illegal• Peer-to-peer networking techniques have made

it easy to trade pirated intellectual property

• Publishers Offer Inexpensive Online Music• Illegal downloading of music and video is

down and continues to drop

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Viruses and WormsViruses and Worms

• A virus is a program that cannot work without being inserted into another program• A worm can run unaided

• These programs copy annoying or destructive routines into networked computers• Copy routines spread the virus

• Commonly transmitted through• The Internet and online services• Email and file attachments• Disks from contaminated computers• Shareware

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Top Five Virus Families of all TimeTop Five Virus Families of all Time

• My Doom, 2004• Spread via email and over Kazaa file-sharing

network• Installs a back door on infected computers• Infected email poses as returned message or one

that can’t be opened correctly, urging recipient to click on attachment

• Opens up TCP ports that stay open even after termination of the worm

• Upon execution, a copy of Notepad is opened, filled with nonsense characters

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• Netsky, 2004• Mass-mailing worm that spreads by emailing

itself to all email addresses found on infected computers

• Tries to spread via peer-to-peer file sharing by copying itself into the shared folder

• It renames itself to pose as one of 26 other common files along the way

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• SoBig, 2004• Mass-mailing email worm that arrives as

an attachment• Examples: Movie_0074.mpg.pif, Document003.pif

• Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking for email addresses to which it can send itself

• Also attempts to download updates for itself

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• Klez, 2002• A mass-mailing email worm that arrives

with a randomly named attachment• Exploits a known vulnerability in MS

Outlook to auto-execute on unpatched clients• Tries to disable virus scanners and then copy

itself to all local and networked drives with a random file name

• Deletes all files on the infected machine and any mapped network drives on the 13th of all even-numbered months

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• Sasser, 2004• Exploits a Microsoft vulnerability to spread

from computer to computer with no user intervention

• Spawns multiple threads that scan local subnets for vulnerabilities

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The Cost of Viruses, Trojans, WormsThe Cost of Viruses, Trojans, Worms

• Cost of the top five virus families• Nearly 115 million computers in 200 countries

were infected in 2004• Up to 11 million computers are believed to

be permanently infected• In 2004, total economic damage from virus

proliferation was $166 to $202 billion• Average damage per computer is between

$277 and $366

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Adware and SpywareAdware and Spyware

• Adware• Software that purports to serve a useful purpose,

and often does• Allows advertisers to display pop-up and banner

ads without the consent of the computer users

• Spyware• Adware that uses an Internet connection in the

background, without the user’s permission or knowledge

• Captures information about the user and sends it over the Internet

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Spyware ProblemsSpyware Problems

• Spyware can steal private information and also• Add advertising links to Web pages• Redirect affiliate payments• Change a users home page and search settings• Make a modem randomly call premium-rate

phone numbers• Leave security holes that let Trojans in• Degrade system performance

• Removal programs are often not completely successful in eliminating spyware

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Privacy IssuesPrivacy Issues

• The power of information technology to store and retrieve information can have a negative effect on every individual’s right to privacy• Personal information is collected with every

visit to a Web site• Confidential information stored by credit

bureaus, credit card companies, and the government has been stolen or misused

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Opt-in Versus Opt-outOpt-in Versus Opt-out

• Opt-In• You explicitly consent to allow data to be

compiled about you• This is the default in Europe

• Opt-Out• Data can be compiled about you unless you

specifically request it not be• This is the default in the U.S.

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• Violation of Privacy• Accessing individuals’ private email

conversations and computer records• Collecting and sharing information about

individuals gained from their visits to Internet websites

• Computer Monitoring• Always knowing where a person is• Mobile and paging services are becoming more

closely associated with people than with places

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• Computer Matching• Using customer information gained from many

sources to market additional business services

• Unauthorized Access of Personal Files• Collecting telephone numbers, email addresses,

credit card numbers, and other information to build customer profiles

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Protecting Your Privacy on the InternetProtecting Your Privacy on the Internet

• There are multiple ways to protect your privacy• Encrypt email• Send newsgroup postings through anonymous

remailers• Ask your ISP not to sell your name and

information to mailing list providers and other marketers

• Don’t reveal personal data and interests on online service and website user profiles

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Privacy LawsPrivacy Laws

• Electronic Communications Privacy Act and Computer Fraud and Abuse Act• Prohibit intercepting data communications

messages, stealing or destroying data, or trespassing in federal-related computer systems

• U.S. Computer Matching and Privacy Act• Regulates the matching of data held in

federal agency files to verify eligibility for federal programs

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Privacy LawsPrivacy Laws

• Other laws impacting privacy and how much a company spends on compliance• Sarbanes-Oxley• Health Insurance Portability and

Accountability Act (HIPAA)• Gramm-Leach-Bliley• USA Patriot Act• California Security Breach Law• Securities and Exchange Commission rule 17a-4

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Computer Libel and CensorshipComputer Libel and Censorship

• The opposite side of the privacy debate… • Freedom of information, speech, and press

• Biggest battlegrounds• Bulletin boards• Email boxes• Online files of Internet and public networks

• Weapons used in this battle• Spamming• Flame mail• Libel laws• Censorship

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Computer Libel and CensorshipComputer Libel and Censorship

• Spamming• Indiscriminate sending of unsolicited email

messages to many Internet users

• Flaming• Sending extremely critical, derogatory, and often

vulgar email messages or newsgroup posting to other users on the Internet or online services

• Especially prevalent on special-interest newsgroups

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CyberlawCyberlaw

• Laws intended to regulate activities over the Internet or via electronic communication devices• Encompasses a wide variety of legal and

political issues• Includes intellectual property, privacy,

freedom of expression, and jurisdiction

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CyberlawCyberlaw

• The intersection of technology and the law is controversial• Some feel the Internet should not be regulated• Encryption and cryptography make traditional

form of regulation difficult• The Internet treats censorship as damage and

simply routes around it

• Cyberlaw only began to emerge in 1996• Debate continues regarding the applicability

of legal principles derived from issues that had nothing to do with cyberspace

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Other ChallengesOther Challenges

• Employment• IT creates new jobs and increases productivity• It can also cause significant reductions in job

opportunities, as well as requiring new job skills

• Computer Monitoring• Using computers to monitor the productivity

and behavior of employees as they work• Criticized as unethical because it monitors

individuals, not just work, and is done constantly• Criticized as invasion of privacy because many

employees do not know they are being monitored

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Other ChallengesOther Challenges

• Working Conditions• IT has eliminated monotonous or obnoxious tasks• However, some skilled craftsperson jobs have

been replaced by jobs requiring routine, repetitive tasks or standby roles

• Individuality• Dehumanizes and depersonalizes activities

because computers eliminate human relationships• Inflexible systems

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Health IssuesHealth Issues

• Cumulative Trauma Disorders (CTDs)• Disorders suffered by people who sit at a

PC or terminal and do fast-paced repetitive keystroke jobs

• Carpal Tunnel Syndrome• Painful, crippling ailment of the hand

and wrist• Typically requires surgery to cure

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ErgonomicsErgonomics

• Designing healthy work environments• Safe, comfortable, and pleasant for people

to work in• Increases employee morale and productivity• Also called human factors engineering

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Ergonomics FactorsErgonomics Factors

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Societal SolutionsSocietal Solutions

• Using information technologies to solve human and social problems• Medical diagnosis• Computer-assisted instruction• Governmental program planning• Environmental quality control• Law enforcement• Job placement

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Societal SolutionsSocietal Solutions

• The detrimental effects of information technology• Often caused by individuals

or organizations not accepting ethical responsibility for their actions

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Security Management of ITSecurity Management of IT

• The Internet was developed for inter-operability, not impenetrability• Business managers and professionals alike

are responsible for the security, quality, and performance of business information systems

• Hardware, software, networks, and data resources must be protected by a variety of security measures

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Case 2: Data Security FailuresCase 2: Data Security Failures

• Security Breach Headlines• Identity thieves stole information on 145,000

people from ChoicePoint• Bank of America lost backup tapes that held

data on over 1 million credit card holders• DSW had its stores’ credit card data breached;

over 1 million had been accessed

• Corporate America is finally owning up to a long-held secret• It can’t safeguard its most valuable data

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• Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies?

• What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources like the incident at Lowe’s?

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• What security safeguards would have deterred the loss of customer data at• TCI• Bank of America• ChoicePoint?

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Security ManagementSecurity Management

• The goal of securitymanagement is the accuracy, integrity, and safety of allinformation system processes and resources

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Internetworked Security DefensesInternetworked Security Defenses

• Encryption• Data is transmitted in scrambled form• It is unscrambled by computer systems for

authorized users only• The most widely used method uses a pair of

public and private keys unique to each individual

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Public/Private Key EncryptionPublic/Private Key Encryption

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• Firewalls• A gatekeeper system that protects a company’s

intranets and other computer networks from intrusion

• Provides a filter and safe transfer point for access to/from the Internet and other networks

• Important for individuals who connect to the Internet with DSL or cable modems

• Can deter hacking, but cannot prevent it

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Internet and Intranet FirewallsInternet and Intranet Firewalls

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Denial of Service AttacksDenial of Service Attacks

• Denial of service attacks depend on three layers of networked computer systems• The victim’s website• The victim’s Internet service provider• Zombie or slave computers that have been

commandeered by the cybercriminals

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Defending Against Denial of ServiceDefending Against Denial of Service

• At Zombie Machines• Set and enforce security policies• Scan for vulnerabilities

• At the ISP• Monitor and block traffic spikes

• At the Victim’s Website• Create backup servers and network connections

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• Email Monitoring• Use of content monitoring software that scans

for troublesome words that might compromise corporate security

• Virus Defenses• Centralize the updating and distribution of

antivirus software• Use a security suite that integrates virus

protection with firewalls, Web security, and content blocking features

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Other Security MeasuresOther Security Measures

• Security Codes• Multilevel password system• Encrypted passwords• Smart cards with microprocessors

• Backup Files• Duplicate files of data or programs

• Security Monitors• Monitor the use of computers and networks• Protects them from unauthorized use, fraud,

and destruction

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• Biometrics• Computer devices measure physical traits

that make each individual unique• Voice recognition, fingerprints, retina scan

• Computer Failure Controls• Prevents computer failures or minimizes

its effects• Preventive maintenance• Arrange backups with a disaster recovery

organization

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• In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software that provide• Fail-over capability: shifts to back up

components• Fail-save capability: the system continues

to operate at the same level• Fail-soft capability: the system continues

to operate at a reduced but acceptable level

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• A disaster recovery plan contains formalized procedures to follow in the event of a disaster• Which employees will participate• What their duties will be• What hardware, software, and facilities

will be used• Priority of applications that will be processed• Use of alternative facilities• Offsite storage of databases

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Information System ControlsInformation System Controls

• Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

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Auditing IT SecurityAuditing IT Security

• IT Security Audits• Performed by internal or external auditors• Review and evaluation of security measures

and management policies• Goal is to ensure that that proper and adequate

measures and policies are in place

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Protecting Yourself from CybercrimeProtecting Yourself from Cybercrime

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Case 3: Managing Information SecurityCase 3: Managing Information Security

• OCTAVE Security Process Methodology• Risk Evaluation

• Self-direction by people in the organization• Adaptable measures that can change with technology• A defined process and standard evaluation procedures• A foundation for a continual process that improves

security over time

• Risk Management• A forward-looking view• A focus on a “critical few” security issues• Integrated management of security policies and

strategies

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Case 3: Managing Information SecurityCase 3: Managing Information Security

• Organizational and Cultural• Open communication of risk information and

activities build around collaboration• A global perspective on risk in the context of the

organization’s mission and business objectives• Teamwork

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• What are security managers doing to improve information security?

• How does the OCTAVE methodology work to improve security in organizations?

• What does Lloyd Hession mean when he says information security is “not addressed simply by the firewalls and antivirus tools that are already in place”?

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Case 4: Maintaining Software SecurityCase 4: Maintaining Software Security

• Security professionals have 7 to 21 days before hacker’s tools used to exploit the most recent vulnerabilities become available on the Internet• Microsoft’s monthly patch-release date is

known as “Patch Tuesday”• Security software companies go to work

immediately to update their products• Update must be thoroughly tested before

being deployed

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• What types of security problems are typically addressed by a patch-management strategy?• Why do such problems arise in the first place?

• What challenges does the process of applying software patches and updates pose for many businesses?• What are the limitations of the patching process?

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• Does the business value of a comprehensive patch-management strategy outweigh its costs, its limitations, and the demands it placed on the IT function?