CHAPTER 8 "Securing Information Systems"

8.1 System Vulnerability and Abuse

If you operate a business today, you need to make security and control a top priority. Security refers to the policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems. Controls are methods, policies, and organizational procedures that ensure the safety of the organization’s assets; the accuracy and reliability of its records; and operational adherence to management standards.


Why Systems Are Vulnerable

When large amounts of data are stored in electronic form, they are vulnerable to many more kinds of threats than when they existed in manual form.

Internet Vulnerabilities
Large public networks, such as the Internet, are more vulnerable than internal networks because they are virtually open to anyone. The Internet is so huge that when abuses do occur, they can have an enormously widespread impact. Computers that are constantly connected to the Internet by cable modems or digital subscriber line (DSL) lines are more open to penetration by outsiders because they use fixed Internet addresses where they can be easily identified. Vulnerability has also increased from widespread use of e-mail, instant messaging (IM), and peer-to-peer file-sharing programs. 

Wireless Security Challenges
Even the wireless network in your home is vulnerable because radio frequency bands are easy to scan. Both Bluetooth and Wi-Fi networks are susceptible to hacking by eavesdroppers.


Malicious Software: Viruses, Worms, Trojan Horses, and Spyware

Malicious software programs are referred to as malware and include a variety of threats, such as computer viruses, worms, and Trojan horses. A computer virus is a rogue software program that attaches itself to other software programs or data files in order to be executed, usually without user knowledge or permission. 

Most recent attacks have come from worms, which are independent computer programs that copy themselves from one computer to other computers over a network.  A Trojan horse is a software program that appears to be benign but then does something other than expected. At the moment, SQL injection attacks are the largest malware threat. SQL injection attacks take advantage of vulnerabilities in poorly coded Web application software to introduce malicious program code into a company’s systems and networks. 

Many users find such spyware annoying and some critics worry about its infringement on computer users’ privacy. Some forms of spyware are especially nefarious. Keyloggers record every keystroke made on a computer to steal serial numbers for software, to launch Internet attacks, to gain access to e-mail accounts, to obtain passwords to protected computer systems, or to pick up personal information such as credit card numbers.


Hacker and Computer Crime

A hacker is an individual who intends to gain unauthorized access to a computer system. Hacker activities have broadened beyond mere system intrusion to include theft of goods and information, as well as system damage and cybervandalism, the intentional disruption, defacement, or even destruction of a Web site or corporate information system. 

Spoofing and Sniffing
Spoofing also may involve redirecting a Web link to an address different from the intended one, with the site masquerading as the intended destination. A sniffer is a type of eavesdropping program that monitors information traveling over a network. 

Denial-of-Service Attacks
In a denial-of-service (DoS) attack, hackers flood a network server or Web server with many thousands of false communications or requests for services to crash the network. A distributed denial-of-service (DDoS) attack uses numerous computers to inundate and overwhelm the network from numerous launch points.

Computer Crime
Most hacker activities are criminal offenses, and the vulnerabilities of systems we have just described make them targets for other types of computer crime as well. 

Identity Theft
Identity theft is a crime in which an imposter obtains key pieces of personal information, such as social security identification numbers, driver’s license numbers, or credit card numbers, to impersonate someone else. 

Click Fraud
Click fraud occurs when an individual or computer program fraudulently clicks on an online ad without any intention of learning more about the advertiser or making a purchase. 

Global Threats: Cyberterrorism and Cyberwarfare
Concern is mounting that the vulnerabilities of the Internet or other networks make digital networks easy targets for digital attacks by terrorists, foreign intelligence services, or other groups seeking to create widespread disruption and harm. Such cyberattacks might target the software that runs electrical power grids, air traffic control systems, or networks of major banks and financial institutions.


Internal Threats: Employees

Employees have access to privileged information, and in the presence of sloppy internal security procedures, they are often able to roam throughout an organization’s systems without leaving a trace. Many employees forget their passwords to access computer systems or allow co-workers to use them, which compromises the system. Malicious intruders seeking system access sometimes trick employees into revealing their passwords by pretending to be legitimate members of the company in need of information. This practice is called social engineering.


Software Vulnerability

A major problem with software is the presence of hidden bugs or program code defects.  Flaws in commercial software not only impede performance but also create security vulnerabilities that open networks to intruders. To correct software flaws once they are identified, the software vendor creates small pieces of software called patches to repair the flaws without disturbing the proper operation of the software.



8.2 Business Value of Security and Control

Protecting information systems is so critical to the operation of the business that it deserves a second look because companies have very valuable information assets to protect. Businesses must protect not only their own information assets but also those of customers, employees, and business partners. Failure to do so may open the firm to costly litigation for data exposure or theft.


Legal and Regulatory Requirements For Electronic Records Management

If you work in the health care industry, your firm will need to comply with the Health Insurance Portability and Accountability Act (HIPAA) of 1996. HIPAA outlines medical security and privacy rules and procedures for simplifying the administration of health care billing and automating the transfer of health care data between health care providers, payers, and plans.

If you work in a firm providing financial services, your firm will need to comply with the Gramm-Leach-Bliley Act. This act requires financial institutions to ensure the security and confidentiality of customer data. 

If you work in a publicly traded company, your company will need to comply with the Sarbanes-Oxley Act. This Act was designed to protect investors after the financial scandals at Enron, WorldCom, and other public companies. It 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

Computer forensics is the scientific collection, examination, authentication, preservation, and analysis of data held on or retrieved from computer storage media in such a way that the information can be used as evidence in a court of law. It deals with the following problems:
  • Recovering data from computers while preserving evidential integrity
  • Securely storing and handling recovered electronic data
  • Finding significant information in a large volume of electronic data
  • Presenting the information to a court of law


8.3 Establishing A Framework For Security and Control

You’ll need to develop a security policy and plans for keeping your business running if your information systems aren’t operational.


Information Systems Controls

General controls govern the design, security, and use of computer programs and the security of data files in general throughout the organization’s information technology infrastructure. Application controls are specific controls unique to each computerized application, such as payroll or order processing.


Risk Assessment

A risk assessment determines the level of risk to the firm if a specific activity or process is not properly controlled. Not all risks can be anticipated and measured, but most businesses will be able to acquire some understanding of the risks they face.


Security Policy

A security policy consists of statements ranking information risks, identifying acceptable security goals, and identifying the mechanisms for achieving these goals. The security policy drives policies determining acceptable use of the firm’s information resources and which members of the company have access to its information assets. An acceptable use policy (AUP) defines acceptable uses of the firm’s information resources and computing equipment, including desktop and laptop computers, wireless devices, telephones, and the Internet. 

Security policy also includes provisions for identity management. Identity management consists of business processes and software tools for identifying the valid users of a system and controlling their access to system resources.


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. Business continuity planning focuses on how the company can restore business operations after a disaster strikes.


The Role of Auditing

An MIS audit examines the firm’s overall security environment as well as controls governing individual information systems. The auditor should trace the flow of sample transactions through the system and perform tests, using, if appropriate, automated audit software. The MIS audit may also examine data quality.



8.4 Technologies and Tools For Protecting Information Resources

Businesses have an array of technologies for protecting their information resources. They include tools for managing user identities, preventing unauthorized access to systems and data, ensuring system availability, and ensuring software quality.

Identity Management and Authentication

To gain access to a system, a user must be authorized and authenticated. Authentication refers to the ability to know that a person is who he or she claims to be. Authentication is often established by using passwords known only to authorized users. New authentication technologies, such as tokens, smart cards, and biometric authentication, overcome some of these problems. A token is a physical device, similar to an identification card, that is designed to prove the identity of a single user. 

A smart card is a device about the size of a credit card that contains a chip formatted with access permission and other data. Biometric authentication uses systems that read and interpret individual human traits, such as fingerprints, irises, and voices, in order to grant or deny access.

Firewalls, Intrusion Detection Systems, and Antivirus Software

Firewalls
Firewalls prevent unauthorized users from accessing private networks. A firewall is a combination of hardware and software that controls the flow of incoming and outgoing network traffic. 

Intrusion Detection Systems
Intrusion detection systems feature full-time monitoring tools placed at the most vulnerable points or “hot spots” of corporate networks to detect and deter intruders continually. 

Antivirus and Antispyware Software
Antivirus software is designed to check computer systems and drives for the presence of computer viruses.

Unified Threat Management Systems
To help businesses reduce costs and improve manageability, security vendors have combined into a single appliance various security tools, including firewalls, virtual private networks, intrusion detection systems, and Web content filtering and antispam software. These comprehensive security management products are called unified threat management (UTM) systems.

Securing Wireless Networks

Despite its flaws, WEP provides some margin of security if Wi-Fi users remember to activate it. A simple first step to thwart hackers is to assign a unique name to your network’s SSID and instruct your router not to broadcast it.

Encryption and Public Key Infrastructure

Encryption is the process of transforming plain text or data into cipher text that cannot be read by anyone other than the sender and the intended receiver. Two methods for encrypting network traffic on the Web are SSL and S-HTTP.

Secure Sockets Layer (SSL) and its successor Transport Layer Security (TLS) enable client and server computers to manage encryption and decryption activities as they communicate with each other during a secure Web session. Secure Hypertext Transfer Protocol (S-HTTP) is another protocol used for encrypting data flowing over the Internet, but it is limited to individual messages, whereas SSL and TLS are designed to establish a secure connection between two computers.

A more secure form of encryption called public key encryption uses two keys: one shared (or public) and one totally private as shown in Figure 8-6. The keys are mathematically related so that data encrypted with one key can be decrypted using only the other key. Digital certificates are data files used to establish the identity of users and electronic assets for protection of online transactions

Ensuring System Availability

As companies increasingly rely on digital networks for revenue and operations, they need to take additional steps to ensure that their systems and applications are always available. In online transaction processing, transactions entered online are immediately processed by the computer. Multitudinous changes to databases, reporting, and requests for information occur each instant.

Fault-tolerant computer systems contain redundant hardware, software, and power supply components that create an environment that provides continuous, uninterrupted service. Fault tolerance should be distinguished from high-availability computing. Both fault tolerance and high-availability computing try to minimize downtime. Downtime refers to periods of time in which a system is not operational. Researchers are exploring ways to make computing systems recover even more rapidly when mishaps occur, an approach called recovery-oriented computing

Controlling Network Traffic: Deep Packet Inspection
A technology called deep packet inspection (DPI) helps solve this problem. DPI examines data files and sorts out low-priority online material while assigning higher priority to business-critical files. 

Security Outsourcing
Many companies, especially small businesses, they can outsource many security functions to managed security service providers (MSSPs) that monitor network activity and perform vulnerability testing and intrusion detection.

Security Issues for Cloud Computing and the Mobile Digital Platform

Although cloud computing and the emerging mobile digital platform have the potential to deliver powerful benefits, they pose new challenges to system security and reliability. 

Security in the Cloud
When processing takes place in the cloud, accountability and responsibility for protection of sensitive data still reside with the company owning that data. Cloud users need to confirm that regardless of where their data are stored or transferred, they are protected at a level that meets their corporate requirements. Cloud users should also ask whether cloud providers will submit to external audits and security certifications. These kinds of controls can be written into the service level agreement (SLA) before to signing with a cloud provider.

Securing Mobile Platforms
If mobile devices are performing many of the functions of computers, they need to be secured like desktops and laptops against malware, theft, accidental loss, unauthorized access, and hacking attempts. Companies should make sure that their corporate security policy includes mobile devices, with additional details on how mobile devices should be supported, protected, and used. Companies will need to ensure that all smartphones are up to date with the latest security patches and antivirus/antispam software, and they should encrypt communication whenever possible.

Ensuring Software Quality

In addition to implementing effective security and controls, organizations can improve system quality and reliability by employing software metrics and rigorous software testing. Software metrics are objective assessments of the system in the form of quantified measurements. Good testing begins before a software program is even written by using a walkthrough—a review of a specification or design document by a small group of people carefully selected based on the skills needed for the particular objectives being tested.



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source: "Management Information System" e-book, 12th edition, written by Kenneth C. Laudon and Jane P. Laudon.

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