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Management Information Systems: Managing the Digital Firm

Sixteenth Edition

Chapter 8

Securing Information Systems

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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?

8.5 How will M I S help my career?

This chapter discusses the need for security to guard information systems and data, as well as technologies used to secure information systems. Ask students what types of threats can harm an information system. Internet security, or the lack thereof, will continue to be a topic of major concern to corporations and countries. Ask students why there is so much attention paid to Internet security issues in the press. Ask if anyone has been a victim of a breach in computer security.

Video Cases

Case 1: Stuxnet and Cyberwarfare

Case 2: Cyberespionage: The Chinese Threat

Instructional Video 1: Sony PlayStation Hacked; Data Stolen from 77 Million Users

Instructional Video 2: Meet the Hackers: Anonymous Statement on Hacking Sony

Hackers Target the U.S. Presidential Election: What Happened? (1 of 2)

Problem

Weak network security

Limited financial resources

Solutions

Malware detection technology

Isolate systems and networks

Prevent unauthorized access

Hackers Target the U.S. Presidential Election: What Happened? (2 of 2)

Hackers took advantage of uneven security and controls and loose management structure to attack the Clinton campaign

Demonstrates vulnerabilities in information technology systems

Illustrates some of the reasons organizations need to pay special attention to information system security

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

This slide introduces the need for both security and controls in today’s businesses in order to safeguard information systems. Ask students to give an example of security technique and an example of a control that might be used in a business.

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

This slide discusses the main categories of threats to information systems. Note that when large amounts of data are stored digitally on computers and servers and in databases, they are vulnerable to many more kinds of threats than when they were stored in manual form, on paper in folders and file cabinets. When data are available over a network, there are even more vulnerabilities. Ask students if they have ever lost data on their computers. What was the reason (hardware, software, “disaster,” other people, etc.). On the other hand, digital records are not vulnerable in ways that manual records in a file cabinet are vulnerable. For instance, you really can’t tell who has accessed manual records, or when, in a physical file. In a database, file access is monitored (unless a hacker has found a way to read records without leaving a digital trail).

Figure 8.1 Contemporary Security Challenges and Vulnerabilities

Figure 8.1, Page 298.

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.

This graphic illustrates the types of threats to system security and the points over the network at which these threats are prevalent. Some problems occur at the client computer, others through the network lines, corporate servers, or in corporate hardware and software.

Full description: A diagram shows the common threats against contemporary information systems. The diagram shows the corporate servers connected to the client, or users, through communication lines at one end and to the corporate system linked to databases at the other end. The corporate system includes the hardware, operating system, and software. The security challenges at each level shown are as follows. For Client, the User, Unauthorized access and Errors. For Communication lines, Tapping, Sniffing, Message Alteration, Theft and fraud, and Radiation. For Corporate Servers, Hacking, Malware, Theft and fraud, Vandalism, and Denial-of-service attacks. For Corporate systems, Theft of data, Copying data, Alteration of data, Hardware failure, and Software failure.

Internet Vulnerabilities

Network open to anyone

Size of Internet means abuses can have wide impact

Use of fixed Internet addresses with cable / D S L modems creates fixed targets for hackers

Unencrypted V O I P

E-mail, P2P, I M

Interception

Attachments with malicious software

Transmitting trade secrets

This slide discusses the types of threats that large public networks, such as the Internet, face because they are open to virtually anyone. Note that the Internet is so huge that when abuses do occur, they can have an enormously widespread impact. And when the Internet becomes part of the corporate network, the organization’s information systems are even more vulnerable to actions from outsiders. The Internet was not designed at inception to be a “secure” network, such as, for instance, the telephone system network. We all get junk spam telephone calls, but hackers have not been able to take control of your telephone, or systematically disrupt telephone service for individuals.

Wireless Security Challenges

Radio frequency bands easy to scan

S S I 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 S I 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

This slide discusses security threats related to wireless networks. Local area networks (LANs) using the 802.11 standard can be easily penetrated by outsiders armed with laptops, wireless cards, external antennae, and hacking software. Hackers use these tools to detect unprotected networks, monitor network traffic, and, in some cases, gain access to the Internet or to corporate networks. Ask students if they have connected to the Internet through an unknown wireless network that a person or business had established and left unprotected. Note that there are stronger encryption and authentication systems available for wireless networks but users must install them. Today Wi-Fi routers ship today with pre-installed security protection.

Figure 8.2 Wi-Fi Security Challenges

Figure 8.2, Page 300.

Many Wi-Fi networks can be penetrated easily by intruders using sniffer programs to obtain an address to access the resources of a network without authorization.

This graphic illustrates why wireless networks are vulnerable—the service set identifiers (SSIDs) identifying the access points in a Wi-Fi network are broadcast multiple times (as illustrated by the orange sphere) and can be picked up fairly easily by intruders’ sniffer programs.

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

This slide identifies the various types of malware that threaten information systems and computers. Ask students if they have ever had a problem with a virus. Do they know how they got infected? Note that there are now thousands of viruses and worms targeting mobile phones, and applications such as Facebook, Pinterest, and blogs are new conduits for malware and spyware. Malware is a serious problem—over the past decade, worms and viruses have caused billions of dollars of damage to corporate networks, e-mail systems, and data.

Malicious Software: Viruses, Worms, Trojan Horses, and Spyware (2 of 2)

Trojan horse

S Q L injection attacks

Ransomware

Spyware

Key loggers

Other types

Reset browser home page

Redirect search requests

Slow computer performance by taking up memory

This slide continues the discussion of types of malware on the previous slide. Note that SQL injection attacks are the largest malware threat. Ask students why this is so. (These attacks enable hackers access to underlying databases that support web applications, such as sales of products and services, e-commerce financial data, and other classified information. In other words, the database is where the information is located. SQL databases have little or no built in security once a hacker gets beyond the entrance point to a corporate network.

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

This slide looks at the people who commit computer crime, and at the various types of computer crime.

Ask students what the difference is between hackers and crackers and if they agree with the differentiation. Have any students been the victim of computer crime or invasion of privacy?

Ask students what the ultimate purpose of spoofing and sniffing are. Note that there are legitimate uses of sniffing—sniffers can help identify network trouble spots or spot criminal activity on a network. Sniffers can also be used to identify copyrighted data being sent over networks, such as pirated music or video files.

Hackers and Computer Crime (2 of 3)

Denial-of-service attacks (D o S)

Distributed denial-of-service attacks (D D o S)

Botnets

Spam

Computer crime

Computer may be target of crime

Computer may be instrument of crime

This slide continues the discussion of the types of computer crimes. What is the result of a DoS attack? The Mirai botnet was responsible for a large scale DoS attack that disrupted the operations of Etsy, Netflix, and other major websites. Bots and botnets are an extremely serious threat because they can be used to launch very large attacks using many different techniques.

This slide looks at the legal definition of computer crime and the two main classes of computer crime. The text lists a variety of other examples for computers as targets and as instruments of crime. Ask the students to provide more examples. According to the Ponemon Institute, the median annual cost of cybercrime for organizations in their study was $11.7 million. However, many companies are reluctant to report computer crimes. Why? What are the most economically damaging types of computer crime? (DoS, introducing viruses, theft of services, disruption of computer systems).

Hackers and Computer Crime (3 of 3)

Identity theft

Phishing

Evil twins

Pharming

Click fraud

Cyberterrorism

Cyberwarfare

This slide continues the discussion of types of computer crime. Have any students encountered any of these types of crimes personally? Note that The U.S. Congress addressed the threat of computer crime in 1986 with the Computer Fraud and Abuse Act. This act makes it illegal to access a computer system without authorization. The text lists other legislation to counter computer crime, such as the National Information Infrastructure Protection Act in 1996 to make virus distribution and hacker attacks to disable websites federal crimes.

This slide continues the discussion of types of computer crime. Note that cybercriminal activities are borderless: The global nature of the Internet makes it possible for cybercriminals to operate anywhere in the world. Ask students if there should be legislation outlawing click fraud. One concern is the use of computer attacks by organized governments, and that such attacks might target major infrastructure such as electrical grids. The text says that at least 20 countries, including China, are believed to be developing offensive and defensive cyberwarfare capabilities. One of the leading, if not the leading, countries in cyberwarfare is the United States.

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

This slide looks at another source of security problems—people inside the company with access to the system. Ask students if they have ever worked somewhere with a vulnerable password system. Have they ever revealed to anyone what their password is or was? What are some solutions to password security? Some financial institutions assign users a new password every day, or every hour.

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

This slide looks at security and other vulnerabilities caused by software errors that open networks to intruders. Equifax software was hacked in 2017 resulting in the loss of personal information of over 150 million people. Ask students why complete testing is not possible with large programs.

The text also gives the example of Microsoft’s service pack upgrades to its operating system software. Failure to install Windows and Office Service Packs is one source of security breaches.

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

Ask students to give an example of how inadequate security or control can pose a serious legal liability. The text gives the example of BJ’s Wholesale Club, which was sued by the U.S. Federal Trade Commission for allowing hackers to access its systems and steal credit and debit card data for fraudulent purchase.

Interactive Session: Technology: Meltdown and Spectre Haunt the World’s Computers

Class discussion

How dangerous are Spectre and Meltdown? Explain your answer.

Compare the threats of Spectre and Meltdown to cloud computing centers, corporate data centers, and individual computer and smartphone users.

How would you protect against Spectre and Meltdown if you were running a public cloud computing center, if you ran a corporate data center, and if you were an individual computer user?

Legal and Regulatory Requirements for Electronic Records Management

H I P A 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

This slide continues the look at the business value of security and control, examining the legal requirements for electronic records management. Note that the Sarbanes-Oxley Act was designed to protect investors after the scandals at Enron, WorldCom, and other public companies. Sarbanes-Oxley is fundamentally about ensuring that internal controls are in place to govern the creation and documentation of information in financial statements. Because managing this data involves information systems, information systems must implement controls to make sure this information is accurate and to enforce integrity, confidentiality, and accuracy.

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

This slide continues the discussion of the business value of security and control. Security, control, and electronic records management are essential today for responding to legal actions. Ask students what the most common form of electronic evidence is (e-mail).

Note that in a legal action, a firm is obligated to respond to a discovery request for access to information that may be used as evidence, and the company is required by law to produce those data. The cost of responding to a discovery request can be enormous if the company has trouble assembling the required data or the data have been corrupted or destroyed. Courts impose severe financial and even criminal penalties for improper destruction of electronic documents. Ask students what ambient data is and to give an example. Given the legal requirements for electronic records, it is important that an awareness of computer forensics should be incorporated into a firm’s contingency planning process.

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

To improve security for a firm‘s information systems, it is important to create a framework that supports security. This includes establishing information systems controls, understanding the risks to the firm’s information systems, and establishing security policies that are appropriate for the firm. This slide looks at controls used in information systems. Remember that controls are methods, policies, and organizational procedures that ensure safety of an organization’s assets; accuracy and reliability of its accounting records; and operational adherence to management standards. Controls may be manual or automated. Ask students to explain the difference between manual and automated controls (e.g., making sure that computer storage areas are secure vs. automated virus updates). There are two main types of controls: general controls and application controls. General controls apply to all computerized applications. A list of types of general controls appears on the next slide. Ask students what the functions are of the different types of general controls.

Ask students what the functions are of the different types of general controls.

This slide examines the second type of information systems controls, application controls. Ask students what each type of application control does. (Input controls check data for accuracy and completeness when they enter the system. There are specific input controls for input authorization, data conversion, data editing, and error handling. Processing controls establish that data are complete and accurate during updating. Output controls ensure that the results of computer processing are accurate, complete, and properly distributed.)

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

This slide looks at another important factor in establishing an appropriate framework for security and control: risk assessment. Although not all risks can be anticipated and measured, most businesses should be able identify many of the risks they face, and understand their potential losses.

Table 8.5 Online Order Processing Risk Assessment

Exposure	Probability of Occurrence	Loss Range (Average) ($)	Expected Annual Loss ($)
Power failure	30%	$5,000 − $200,000 ($102,500)	$30,750
Embezzlement	5%	$1,000 − $50,000 ($25,500)	$1,275
User error	98%	$200 − $40,000 ($20,100)	$19,698

The table illustrates sample results of a risk assessment for an online order processing system that processes 30,000 orders per day. The likelihood of each exposure occurring over a one-year period is expressed as a percentage. The expected annual loss is the result of multiplying the probability by the average loss. Ask students to rank the three risks listed here in order of most important to minimize.

Security Policy

Ranks information risks, identifies security goals and mechanisms for achieving these goals

Drives other policies

Acceptable use policy (A U P)

Defines acceptable uses of firm’s information resources and computing equipment

Identity management

Identifying valid users

Controlling access

This slide looks at the need for a firm to establish a security policy for protecting a company’s assets, as well as other company policies the security policy drives, and how information systems support this. Ask students what types of issues would be covered under an AUP. (Privacy, user responsibility, and personal use of company equipment and networks, unacceptable and acceptable actions for every user, and consequences for noncompliance.)

This slide looks at the area of security policy involved in managing identities of system users. Ask students why businesses consider it important to specify which portion of an information system a user has access to? What kinds of information requires very high levels of security access? What rules might be used to determine access rules? One rule is “need to know.”

Figure 8.3 Access Rules for a Personnel System

Figure 8.3, Page 314.

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.

This graphic illustrates the security allowed for two sets of users of a personnel database that contains sensitive information such as employees’ salaries and medical histories. One set of users consists of all employees who perform clerical functions, such as inputting employee data into the system. All individuals with this type of profile can update the system but can neither read nor update sensitive fields, such as salary, medical history, or earnings data. Another profile applies to a divisional manager, who cannot update the system but who can read all employee data fields for his or her division, including medical history and salary. These security profiles are based on access rules supplied by business groups in the firm.

Full description: A chart shows the access rules for a personnel system. The chart is titled Security Profile 1 at the top followed by the information as follows. User, Personnel Department Clerk. Location, Division 1. Employee identification. Codes with this profile, 0 0 7 5 3, 2 7 8 3 4, 3 7 6 6 5, 4 4 1 1 6. Data field restrictions, All employee data for Division 1 only. Type of access, Read and Update. Medical history data, None. Salary, None. Pensionable earnings, None. Below this profile is Security Profile 2 as follows. User, Divisional Personnel Manager. Location, Division 1. Employee identification. Codes with this profile, 2 7 3 2 1. Data field restrictions, All employee data for Division 1 only. Type of access, Read only.

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

This slide continues the discussion of essential activities a firm performs to maximize security and control, here looking at planning for activities should a disaster occur, such as a flood, earthquake, or power outage. Note that disaster recovery plans focus primarily on the technical issues involved in keeping systems up and running, such as which files to back up and the maintenance of backup computer systems or disaster recovery services. Credit card firms, for instance, maintain a duplicate computer centers to serve as an emergency backup to their primary computer centers. Ask students why it is important that both business managers and information systems specialists work together on these plans.

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

This slide looks at the role of auditing. An MIS audit enables a firm to determine if existing security measures and controls are effective.

Figure 8.4 Sample Auditor’s List of Control Weaknesses

Figure 8.4, Page 316.

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 management takes.

This graphic illustrates a sample page from an auditor’s listing of control weaknesses for a loan system. It includes a section for notifying management of such weaknesses and for management’s response. Management is expected to devise a plan for countering significant weaknesses in controls.

Full description: A table shows the sample auditor’s list of control weaknesses. The table shows the following information at the top. Function, Loan. Location, Peoria, Illinois. Prepared by, J Ericson. Date, June 16, 20 18. Received by, T Benson. Review date, June 28, 20 18. There are three headings labeled Nature of Weakness, Chance for Error or Abuse, Notification to Management. Below Chance for Error or Abuse and Notification to Management are the labels yes or no, justification, report date, and management response. The data below these labels is as follows. 1. The nature of weakness is User accounts with missing passwords, Chance for Error or Abuse is yes, the justification is Leaves system open to unauthorized outsiders or attackers, the report date is 5 10, 2018, and management response is Eliminate accounts without passwords. 2. The nature of weakness is Network configured to allow some sharing of system files, Chance for Error or Abuse is yes, the justification is Exposes critical system files to hostile parties connected to the network, the report date is 5 10, 2018, and management response is Ensure only required directories are shared and that they are protected with strong passwords. 3. The nature of weakness is Software patches can update production programs without final approval from Standards and Controls group, Chance for Error or Abuse is no, the justification is All production programs require management approval. Standards and Controls group assigns such cases to a temporary production status, there is no report date, and no management response.

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

This slide looks at the technologies used for identifying and authenticating users. Ask students which of the various authentication methods seem to be the most foolproof. Passwords are traditional methods for authentication and newer methods include tokens, smart cards, and biometric authentication. Have any students used authentication methods other than passwords to access a system? Ask students to give examples of things that can be used for biometric authentication (voices, irises, fingerprints, palmprints, face recognition.) Smartphones typically now use fingerprint authentication, and some PCs can be ordered with fingerprint authentication of the user. What are some problems with strict biometric authentication for PCs or smartphones?

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 (N A T)

Application proxy filtering

This slide looks at an essential tool used to prevent intruders from accessing private networks—firewalls. To create a strong firewall, an administrator must maintain detailed internal rules identifying the people, applications, or addresses that are allowed or rejected. Firewalls can deter, but not completely prevent, network penetration by outsiders and should be viewed as one element in an overall security plan.

Ask students to differentiate between the screening technologies listed here. Note that these are often used in combination.

Figure 8.5 A Corporate Firewall

Figure 8.5, Page 319.

The firewall is placed between the firm’s private network and the public Internet or another distrusted network to protect against unauthorized traffic.

This graphic illustrates the use of firewalls on a corporate network. Notice that here, a second, “inner” firewall protects the web server from access through the internal network.

Full description: A diagram depicts a corporate firewall. The diagram shows following components from left to right with a two-way arrow between them. Internet, Outer firewall, Web server, Inner firewall, Corporate systems, and Database. The diagram also shows two-way arrows between policy rules and outer and inner firewalls. Also, various user computers are connected to the corporate systems through L A N’s.

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 (U T M) systems

This slide looks at additional tools to prevent unwanted intruders and software from accessing the network. Ask students what antivirus and antispyware tools they use. Ask why these tools require continual updating. Ask why UTM packages would include anti-spam software.

Securing Wireless Networks

W E P security

Static encryption keys are relatively easy to crack

Improved if used in conjunction with V P N

W P A 2 specification

Replaces W E P with stronger standards

Continually changing, longer encryption keys

This slide looks at the tools and technologies used to secure wireless networks. Ask students with laptops what types of wireless security they have available to them, and which one they use.

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 (S S L) and successor Transport Layer Security (T L S)

Secure Hypertext Transfer Protocol (S-H T T P)

This slide introduces the use of encryption to ensure that data traveling along networks cannot be read by unauthorized users. Ask students what encryption involves: use of encryption key (a numerical code) that is used to transform a message into undecipherable text. The cipher text requires a key to be decrypted and read by the recipient.

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

This slide discusses the use of encryption to ensure that data traveling along networks cannot be read by unauthorized users. Ask students to explain the difference between symmetric key encryption and public key encryption. (In symmetric key encryption, the sender and receiver establish a secure Internet session by creating a single encryption key and sending it to the receiver so both the sender and receiver share the same key. Public key encryption uses two keys: one shared (or public) and one totally private. The keys are mathematically related so that data encrypted with one key can be decrypted using only the other key. To send and receive messages, communicators first create separate pairs of private and public keys. The public key is kept in a directory and the private key must be kept secret. The sender encrypts a message with the recipient’s public key. On receiving the message, the recipient uses his or her private key to decrypt it. Ask students why public key encryption is stronger than symmetric key encryption. Note that the strength of an encryption key is measured by its bit length. Today, a typical key will be 128 bits long (a string of 128 binary digits).

Figure 8.6 Public Key Encryption

Figure 8.6, Page 321.

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 the 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.

This graphic illustrates the steps in public key encryption. The sender encrypts data using the public key of the recipient; data encrypted with this public key can only be decrypted with the recipient’s private key.

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 (P K I)

Use of public key cryptography working with certificate authority

Widely used in e-commerce

This slide looks at the use of digital certificates as a tool to help protect online transactions. Digital certificates are used in conjunction with public key encryption to validate the identities of two parties in a transaction before data is exchanged.

Figure 8.7 Digital Certificates

Figure 8.7, Page 322.

Digital certificates help establish the identity of people or electronic assets. They protect online transactions by providing secure, encrypted, online communication.

This graphic illustrates the process for using digital certificates. The institution or individual requests a certificate over the Internet from a CA; the certificate received from the CA can then be used to validate a transaction with an online merchant or customer.

Full description: A diagram shows the process of receiving digital certificates. The diagram shows Certification Authorities or C A’s, at different levels connected to the Internet. The institution or individual subject requests the certificate through the Internet. The certificate received is shown as follows. Digital Certificate Serial Number, Version, Issue Number, Issuance and Expiration Date, Subject Name, Subject Public Key, C A Signature, and Other Information. Also, the institution or individual subject is shown connected to the transaction partner, or online merchant or customer.

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 S S P s)

This slide looks at technologies and tools for ensuring system availability. Ask students why online transaction processing requires 100% availability. Note that firms with heavy e-commerce processing or for firms that depend on digital networks for their internal operations require at minimum high-availability computing, using tools such as backup servers, distribution of processing across multiple servers, high-capacity storage, and good disaster recovery and business continuity plans.

This slide continues the discussion of techniques to minimize downtime and improve network performance. Deep packet inspection enables a network to sort low-priority data packets from high-priority ones in order to improve performance for business critical communication. Ask students what types of network traffic would be suitable for assigning lower priority in a business setting.

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 (S L A s)

This slide describes security concerns specific to cloud computing and mobile computing. Ask students what the key factors are to consider in ensuring a provider has adequate protection (downtime, privacy, and privacy rules in accordance with jurisdiction, external audits, disaster planning).

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

This slide looks at securing mobile systems. What specific concerns are there with mobile devices? One very common security breach involves employees losing phones while traveling. In some cases, the rule is, “lose your phone, lose your job.” Mobile devices such as tablets will increasingly store a considerable amount of corporate information. Then again, if the data is largely stored in the cloud, and passwords are required for access, then the threat is reduced.

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

This slide looks at ensuring software quality as a way to improve system quality and reliability by employing software metrics and rigorous software testing. Ongoing use of metrics allows the information systems department and end users to jointly measure the performance of the system and identify problems as they occur.

Interactive Session: Organizations: How Secure Is the Cloud?

Class discussion

What kinds of security problems does cloud computing pose? How serious are they? Explain your answer.

What management, organization, and technology factors are responsible for cloud security problems? To what extent is cloud security a management issue?

What steps can organizations take to make their cloud-based systems more secure?

Should companies use the public cloud to run their mission-critical systems? Why or why not?

How Will M I S Help My Career?

The Company: No. 1 Value Supermarkets

Position Description: Identity access and management support specialist, entry-level

Job Requirements

Interview Questions

Author Tips

A good opportunity for a class discussion of the new Section on careers. Would any in the class be interested in a job like this? What do they think are the most important skills the employer is looking for? How would they answer the interviewer questions?

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