Case Question

E-commerce 2021: business. technology. society. KENNETH C. LAUDON AND CAROL G. TRAVER

video case chapter 5 E-commerce Security and

Payment Systems case 5.1 Cyberwar

watch the video at https://www.youtube.com/watch?v=MXWyQZ-2qB8

summary These videos explore the ever-more concerning issue of cyberwarfare, the subject of Chapter 5’s opening case. The first video, from CNBC, focuses on how governments can defend against cyberattacks, highlighting the notorious cyberwar attack on Estonia and the steps the Estonian government has taken to prevent new attacks. L: 4.44

watch the video at https://www.youtube.com/watch?v=1_WMxJgafTM

summary The second video, from PBS, focuses on U.S. cyberwarfare deterrence operations. L: 6:12

Copyright © 2022 Kenneth C. Laudon and Carol Guercio Traver. 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 in any form, including online, for any other purpose is not permitted. This work should not 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 its pedagogical purpose.

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5.1: 2

Copyright © 2022 Kenneth C. Laudon and Carol Guercio Traver. 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 in any form, including online, for any other purpose is not permitted. This work should not 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 its pedagogical purpose.

case In recent years, cyberwar has left the realm of science fiction and has become the cold, hard reality of the modern age. Every statistic having to do with the increase in frequency and size of cyberattacks is on the rise. In 2016, the much-publicized intrusion into the United States presidential election became one of the most influential cyberattacks to date, and the WannaCry worm’s spread throughout government agencies in the United States, Great Britain, Europe, and Asia proved that most organizations lack the necessary cybersecurity to guard against cutting-edge malware. Hackers continue to target private companies as well, including credit reporting agency Equifax in 2018, leading to the release of the personal data of 148 million U.S. consumers. But unlike past examples of warfare, the online battlefield doesn’t just belong to the strongest nations, although the U.S., China, and Russia are all actively engaged in both offensive and defensive cyberwar efforts.

As described in the first video, Estonia was the victim of a coordinated cyberattack in 2007 that brought the heavily-digital country to its knees. As a result, the country is now boasts one of the most comprehensive cybersecurity programs of any nation, despite its tiny size. Other smaller nations such as North Korea also have built powerful cyber capabilities, which was on display when Sony was hacked in response to their provocative movie The Interview, whose eventual release was delayed and number of screenings dramatically reduced.

Between bot networks, DDoS attacks, Trojans, phishing, ransomware, data theft, identity theft, credit card fraud, and spyware, there’s no shortage of ways for cybercriminals to make an impact online. However, the difference between these types of attacks, which can be extremely annoying to the victims and have major implications for e-commerce, and the next wave of cyberattacks, which have the potential to damage or destroy important components of national infrastructure as in Estonia, is significant. Restoring a stolen identity is annoying, as anybody who’s had to do it understands. Canceling or interfering with a movie release has dire implications for creative expression. But attacks to systems such as self-driving car guidance systems, airplanes, or municipal power and water supplies, all of which are increasingly becoming computerized and automated, could have much more serious consequences, including loss of life.

The Stuxnet worm, which destroyed thousands of Iranian nuclear centrifuges in an effort by the U.S. and Israel to cripple Iran’s nuclear program, was an example of this type of attack in action. While it was successful in this regard, it was also

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Copyright © 2022 Kenneth C. Laudon and Carol Guercio Traver. 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 in any form, including online, for any other purpose is not permitted. This work should not 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 its pedagogical purpose.

a proof of concept of this type of attack, and similar attacks have been made against industrial control modules, computer systems, and networks. Furthermore, the world has continued to move towards the Internet of Things, where everyday objects such as TVs, thermostats, appliances, cars, and other equipment gain the ability to connect to the Internet and share information. The potential applications of these technologies to improve our lives are limitless, but the Internet of Things also creates a whole new area of attack for potential cybercriminals.

The second video focuses on U.S. cyberwarfare deterrence operations, more specifically U.S. military efforts to infiltrate the power grid, and the potential issues and consequences surrounding such operations.

video case questions

1. What was the reason for the cyberattacks made against Estonia in 2017?

2. How has cooperation with other nations helped Estonia improve its ability to respond to cyberattacks?

3. How long has the United States been dedicating resources to understanding the cyber vulnerabilities of other nations?

4. In what way is the current cybersecurity environment like the Wild West?

5. What can be an unintended consequence of executing a cyberattack, such as the United States’ use of Stuxnet against the Iranian nuclear program?

6. According to John Yang, how important is Cybercommand to U.S. military power?