MISO L007 managing system security

Prepared by: Jan Wong

ManagementInformation

Systemsin Organizations

MANAGINGSYSTEM SECURITY

The Learning Outcomes

At the end of this session you should be able to:

the vulnerability of IS and the possible damage from malfunctions

the security issues of the Web and E-Commerce

EXAMINE

DISCUSS

the major methods in defending information systems

DESCRIBE

security auditingDESCRIBE

Computer Systems Management

• Encompasses all activities related to the: • Planning• Organizing, Acquiring• Maintaining• Securing• Controlling of IT resources

CASE: DOS ATTACK

• On Feb. 6, 2000 - the biggest EC sites were hit by cyber crime• The attacker used a method called denial of service (DOS)

• By hammering a Web site’s equipment with too many requests for information, an attacker can effectively clog a system

• The total damage worldwide was estimated at $5 -10 billion (U.S.)• The alleged attacker, from the Philippines, was not prosecuted because he did not break any law in the Philippines

MORE CASES• An American computer programmer planted a virus to be activated two days after his name was deleted from the payroll file. The virus eliminated 168,000 payroll records which resulted in a one-month delay in processing payroll cheques. Donald Burleston was found guilty of a third degree felony and fined $5,000

•A group installed an ATM in a busy shopping center in Hartford, Connecticut. Customers using the m/c were shown the message “sorry, no transactions possible” after inserting their cards and entering the pin numbers. Using counterfeit cards made from the information given the group netted around $100,000.

MORE CASES• The U.S. Social Security Service discovered an error in the program used to calculate retirement benefits. The error had been in the system for over 20 years. It had shortchanged 700,000 people of over $850 million and took more than three years to fix the problem.

Lessons Learnt from the Cases

• Information resources that include computers, networks, programs, and data are vulnerable to unforeseen attacks.

• Many countries do not have sufficient laws to deal with computer criminals.

• Protection of networked systems can be a complex issue.

• Attackers can zero on a single company, or can attack many companies, without discrimination.

• Attackers use different attack methods.

• Although variations of the attack methods are known, the defense against them is difficult and/or expensive.

Security Threats

SecurityProblems

• IS physical resources, data, software, procedures and other resources may be at risk at any time

• Hundreds of potential threats exist

• Computing resources may be distributed across many locations – Intranets, Extranets

• Computer networks can be outside the organization and difficult to protect

• Many individuals control information assets

“Defending information systems is not a simple or inexpensive task”

SecurityProblems

• Rapid technological changes make some controls obsolete as soon as they are installed

• Many computer crimes are undetected for a long period of time.

• People tend to violate security procedures because they are inconvenient

• e.g. Windows Vista

“Defending information systems is not a simple or inexpensive task”

Risks in Information Systems

1. Human errors In the design of

hardware and information systems

Programming, testing, authorization

These errors contribute to the vast majority of control and security related problems.

2. Environmental hazards Earthquakes, hurricanes,

floods, lightning strikes etc.

Fire, defective air-conditioning, radio-active fallout, water-cooling systems failures.

Smoke, heat and water damage resulting from the other environmental hazards.

5“Human errors, environmental hazards, computer system failures, cyber crime & intentional threats”


3. Computer systems failures

• Poor design• Use of defective material• Lack of proper quality

control• Inadequate specification

of hardware by the buyer

4. Cyber Crime• Hackers

• outsiders who penetrate a computer system or by

• insiders who are authorized to use the computer system but are misusing their authorization.



4. Cyber Crime (cont’)

• According to the FBI• an average white-collar

crime involves $23,000; but

• an average computer crime involves about $600,000

• 2 Basic Types of Attack:• Data tampering

• False, fabricated or fraudulent data

• Changing or deleting data• Examples –

• Wages clerk and the extra employee

• Stock clerk and the damaged stock

• Shift supervisor and the extra overtime



4. Cyber Crime (cont’)

• Programming fraud, e.g. Viruses• Programming

techniques used to modify a computer program• Virus• Worm• Trojan Horse• Spoofing



5. Intentional threats• Theft of data,

inappropriate use of data• Theft of computer time,

equipment and programs• Deliberate manipulation

of data and programs• Strikes, riots, sabotage • Malicious damage

including terrorist attacks• Destruction from virus

attacks• Miscellaneous computer

abuses and crimes• Fraud and crimes related

to the use of the internet


Objectives of Defense Strategies

The following are the major objectives of defense strategies:

1. Prevention & deterrence

To prevent future attacks

2. Detection For early detection

3. Recovery Fixing damaged IS

4. Correction To eliminate problem

Preventive Control Systems• Access control • Transaction logs and audit trails • Encryption • Archiving • Virus protection / Firewall• Documentation

• Computer operation Manual• Systems Administration Manual

• Separation of Functions• Personnel Control• IS Audit

IT Auditing

• Involves a periodical examination and check of financial and accounting records and PROCEDURES. – the system audit

• Two types of auditors (and audits): Internal External

IT Auditing

Auditors attempt to answer questions such as:

1. Are there sufficient controls in the system?

2. Which areas are not covered by controls?

3. Which controls are not necessary?

4. Are the controls implemented properly?

5. Are the controls effective; do they check the output of the system?

IT Auditing

6. Is there a clear separation of duties of employees?

7. Are there procedures to ensure compliance with the controls?

8. Are there procedures to ensure reporting and corrective actions in case of violations of controls?

How is Auditing Executed?

• IT auditing procedures can be classified into three categories:

1. Auditing around the computer - verifying processing by checking for known outputs using specific inputs.

2. Auditing through the computer - inputs, outputs, and processing are checked.

3. Auditing with the computer - using a combination of client data, auditor software, and client and auditor hardware.

THINGS TO TAKE NOTE OFF

• 5 risks in information systems

• Security threats

• Defense strategies against threats

• What are preventive control systems?

• IT Audit

M a n a g i n g S y s t e m S e c u r i t y

IT’S TIME FOR SOME DISCUSSIONS!

• Describe prevention, deterrence, detection, recovery, and correction.

• Discuss the terms controls, threats, vulnerability, and backup.

• What is the difference between authorized and authenticated users?

• Describe auditing of information systems.

IT’S TIME FOR ANIN-CLASS ACTIVITY!

• Get into groups of 5-6 members

• Identify 3 risks that your Information System is susceptible to

• Provide solutions to the risks identified

C o m i n g s o o n … n e x t c l a s sManagementInformation

Systemsin Organizations

DISASTERRECOVERY PLAN

What is a disaster recovery plan? How does it minimize risk?

Documents

MISO L007 managing system security