NORTHCENTRAL UNIVERSITY

MGT7027-8-8 14

NORTHCENTRAL UNIVERSITY

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MGT-7027

Legal Implications in Management

Assignment #8

Faculty Use Only

Effective Strategies for Business in Cyberspace

Legal Implications in Management Assignment #8

Introduction

In the past 50 years the way businesses conduct their organizations have drastically changed. Previously, business owners did not have the need to store large amounts of data and information. However, businesses today create and must store more data than ever before. This could be from performing a daily task to managing contact information for a patron to communicating with potential clients by computers (Uses for Computers in Business, 20217). This business need for storing large amounts of data makes the use of computers a necessity for success.

This course of businesses depending on computers for online communication and storage of their data opened the door to new threats that previously were not thought of. The information is now potentially available to outsiders who might access it illegally. Today we will address the constitutional limitations on new technology in regard to computer information access. We will also look at how cybercrime effects businesses and patrons rights. Also, the ways that businesses can utilize management practices to deter cybercrime and keep their information safe from cyberattacks. Lastly, we will speak to laws that are impacting businesses and technology advancements.

Civil Procedures on Technology Innovations

Civil procedures are bodies of laws that create standards a court will follow when handling civil lawsuits (Vojo & Marina, 2015). Civil procedures must create a healthy balance between information access and the Constitution to avoid any rights violations. When the United States Constitution was created over 200 years ago the writers could not have fathomed the idea of computers and the internet. The writers knew that at some point we would continue to advance and made the document a living document. However, the ever-expanding advances of technology innovations and information access means that the Constitution must be debated with the idea of originalist textualism. Originalist textualism is the idea that The Constitution means nothing more than what those who authored it originally wrote and intended it to mean (Epstein, 2014).

With originalist textualism in mind, we must address the constitutional limitations on technology advancements and the accessing of information. The Constitution does not specifically talk about collecting information and sharing it. However, todays technology allows for the government to be able to engage in mass tracking of millions of Americans. The problem is that most of the Americans who are being tracked are completely innocent of doing anything wrong (Vojo & Marina, 2015). This tracked information also becoming more readily available because data storage is becoming cheaper (Vojo & Marina, 2015). This is where the balance between data storage and sharing, and what the Constitution intended must come in to play.

Constitutional Limitations on Technology Innovations

Information access based on technology innovations became very apparent when Edward Snowden leaked government documents last year showing how much information the National Security Agency has gathered. When he did this, it showed citizens how much personal information the United States is gathering and retaining about them. This brought up the questions of legality and any limitations that the Constitution has on information obtained without consent. In a lot of ways, the Constitution is trying to keep up with the advancements of technology.

The Constitution creates limitations for accessing information that might be stored on new age technology. However, the Constitution is not specific enough to address all technology, so there needs to be clarification at times. The Fourth Amendment protects people from unreasonable searches and seizures and allows for people to be secure in their houses, papers, and effects (Pincus, 2013). The case of Riley v California in 2009 brought the idea of searching a cell phone that was found on an arrestee without a warrant. David Riley was arrested for possession of firearms. When arrested, he had his cell phone on him which was seized and analyzed (Pincus, 2013). The analyzing of the cell phone data led to separate charges against Mr. Riley of attempted murder. Mr. Riley was convicted but had tried to suppress the evidence that led to the additional charges based on it being created from the evidence that was taken off his phone (Pincus, 2013). The officers claimed they were within the rights of the warrantless search exception which allows for a search following an arrest for purposes of officer safety and preservation of evidence (Pincus, 2013). The Supreme Court stated that the digital data that was obtained from the phone was not an imminent threat to law enforcement. Therefore, they should have taken additional measures to preserve the evidence until a warrant was obtained to access it (Pincus, 2013).

How Cybercrime Effects Intellectual Property

Cybercrime is becoming more and more of an epidemic as people begin to rely more on computers. Cybercrime is when a criminal activity is carried out by the suspect using a computer (Chong, 2017). There are trends that happen in cybercrime because the law is usually behind the technology that is being used to commit crimes. The skimming of credit cards at places like ATMs and gas station was a large criminal endeavor that is now declining because of awareness to the problem (Chong, 2017). Most recently, hacking into organizations networks to steal information on people is the most common type of cyber-attack (Chong, 2017). No matter the process that criminals use, the reasoning behind the attacks is always the same: financial gain.

The cyber-attacks not only create problems for the victims because of loss of finances, but they may also be victimized by the theft of intellectual property. Intellectual property is something that was created by a person such as an invention, thought, design, or artistic work (GEIGER, & IZYUMENKO, 2016). Cybercrime is threatening people by stealing their intellectual property. A common example of this is copyright infringement by theft of copyrighted material online (GEIGER, & IZYUMENKO, 2016). Movies, TV shows, music, and literature are all falling victim to being targeted for cybercrimes. The suspects can steal this material and then are difficult to catch because they run their operations from various jurisdictions. They also change locations regularly, conceal their identities, or use multiple servers to make it more difficult to be located (GEIGER, & IZYUMENKO, 2016). These methods have all made the theft of intellectual property a widespread cybercrime that is difficult to enforce.

This cybercrime effects the owners of intellectual property in various ways. The largest and most harmful way it effects the victim is financially (GEIGER, & IZYUMENKO, 2016). The profits of a victims intellectual property are going to decrease because of cybercrime. If someone can stream a movie online for free, they are less likely to purchase a movie ticket to watch it in the theater. Similar, if someone is able to download a song for free over the internet, they are less likely to purchase the music legally.

How Cybercrime Effects Business Outcomes and Individual Rights

Cybercrime also effects law processes, business outcomes, and individuals rights. Cybercrime is constantly evolving which means that law processes must also be constantly evolving to stay current. For law processes to continue to keep up with new types of cybercrime, they must have a proactive approach to enforcing the laws (MIHAI, 2017). The investigation measures of the law must also continue to evolve to keep up with cybercrime (MIHAI, 2017). Lastly, the definition of jurisdiction must be clearly understood to help prosecute criminals of cybercrimes.

Businesses are effected by cybercrimes in many ways. The theft of trade secrets from an organization may lead to others being able to use a companys tactics to compete against them (MIHAI, 2017). Trade secrets are able to be stolen remotely from victims because most data a business has is stored on computer files. Businesses must stay up to date with the newest types of security to maintain the safety of their data. This means that a business must hire and maintain top level security to keep from being a victim.

Individuals are also affected because of cybercrime. The most common way an individual can be a victim of cybercrime is by identity theft (MIHAI, 2017). Identity theft is when a persons personal information is stolen and used without consent (MIHAI, 2017). This also happens without the victim knowing before it is too late. One way that people can help protect themselves from cybercrime is by purchasing insurance. Insurance companies are offering insurance to individuals to protect them against potential cybercrime attacks (Rechtman, 2017).

Management Practices to Deter Cybercrime

Companies must install practices to help combat cybercrime and protect their information. There are several things that a business can do to help deter cybercrime. The first thing that can be done is by making cybercrime deterrent a priority. It cannot just be something that is discussed at a meeting, put on paper, and no action is taken. Cybercrime will continually evolve and change because criminals adapt to learn ways around security measures (Eddolls, 2016). By making the stoppage of cybercrime a priority, it will help an organization towards deterring it.

Corporations are often one step behind of cybercriminals because it is difficult to anticipate how they will attack an organization (Eddolls, 2016). For this reason, having the latest technology and protective security measures is a must when attempting to deter cybercrime. Any organization who utilizes computers for data and information storage will always be vulnerable to a potential cybercrimes (Eddolls, 2016). However, to stay ahead of the criminals, a strong protective security system can prove to be beneficial. Having a good system will not only protect the information, but it will also analyze the system to look for weaknesses. A constant assessment of areas that may be susceptible to an attack is vital to preventing cybercrime (Eddolls, 2016).

Lastly a way that cybercrime can be deterred by a business is by property training and education of management. Cybercrime security is not just a job for a companys IT department, it must be done by all team members (Eddolls, 2016). This means that all team members must be educated on cybercrime and ways to prevent it. A team member taking a work laptop and connecting to an unsecured internet connection may seem harmless, but it opens the door for potential attacks (Eddolls, 2016). Also, something as innocent as not locking your desktop before leaving your office may seem small, but it could allow for someone to access your computer (Eddolls, 2016).

Legal Rights of Different Forms of Organizations

An organization has many legal rights to help them protect themselves from outside cyberattacks. The risk of cybercrime to a company is a great one as estimates state that cybercrime costs companies an average of $7.7 million per year (The Right to Digital Self-Defense, 2017). There are many different ways that an organization can take measure to defend themselves from cyberattacks. Computer firewalls, antivirus protection, and intrusion detection systems are all types of examples of cybersecurity.

Suspects in cybercrime are difficult to prosecute at times because they can be located anywhere in the world (The Right to Digital Self-Defense, 2017). This means that there is less deterrent to cybercriminals because they might not be jailed for their behavior. For this reason, organizations must be proactive in protecting themselves. If organizations rely on being reactive, the damage that might be done cannot be recouped because the suspects might not be caught.

Legally, organizations have the right to protect themselves. Such ideas for a proactive way to shield them from cybercrime is setting up a firewall that not only blocks an attack, but retaliates against the suspect. Another proactive measure would be to create a trap if a hacker attempted to access information (The Right to Digital Self-Defense, 2017). These are types of cyber offensive actions that an organization could take.

Impact of Key Employment, Labor, Environmental, and Civil Rights Laws

As companies advance and create new technological innovations, they must realize the impact of laws to their businesses. Employment laws regarding technology innovations continue to change and evolve every year. Therefore, an organization must stay current on their awareness of new laws that have been created. Social media is rapidly changing and the concern on how an employee uses their social media is a valid concern towards a business. A business may be liable for the actions of their employee on social media. Organizations must understand labor laws when attempting to terminate an employee based on information from social media (POST, BAYLESS, & GRUBBS, 2014). There must be an establishment of clear rules and standards for how employees interact on social media, without infringing on an employees rights.

Environmental laws in regard to technology innovations are important for an organization to understand also. An organization must look at their impact on the environment and assess how they may be negatively impacting it. Companies can use pollution control devices, waste treatment processes, or recycling initiatives to attempt to decrease the amount of negative long-term impact they have on the environment (Kanda, Sakao, & Hjelm, 2016). Looking at the potential use of renewable energy solutions is something an organization can also do with the help of technology.

Labor laws for an organization are changing with increased amounts of technology too. Employees now have the ability to perform some jobs from the office, home, their car, or many other places. While this may seem as a luxury for an employer, they must still take into account how this may affect employees. Labor laws have struggled to keep pace with technology. For that reason, organizations must stay up to date with their own policies as technology advances (Dalsen, 2017).

Lastly, as technology continues to evolve, businesses must take into account how the advancements would affect civil rights of their employees. The Title VII of The Civil Rights Act of 1964 ensures that employers cannot discriminate based on sex, race, color, national origin, and religion (Turner, 2017). However, employers can discriminate against potential employees based on their social media posts. They can also use credit reports to determine if they will promote them or not. These laws just have not caught up yet with the technological advancements.

Implementation of Policies for Business in Cyberspace

Any organization that is planning on storing their data online runs the risk of cyberattacks. Also, if a company uses online communication to speak with patrons they create a potential risk for cyberattacks. There are national security threats that are created by cyberattacks as well. In 2016, there was a cyberattack that affected over 150 countries and 200,000 computers (White, 2016). The last U.S. election has brought on claims of cyberattacks that may have altered it. These attacks threaten our national security and potentially lead to high amounts of lost intellectual property (White, 2016). The potential of an attack on the United States infrastructure if a constant fear of many Americans as well. After September 11th, 2001 happened, the U.S. increased their cybersecurity measures because there was a fear of an attack against infrastructure (White, 2016).

Currently the U.S. Department of Homeland Security has the mission of ensuring the homeland is safe, secure and resilient against terrorism and other hazards. They are also tasked with constantly creating new security measures that can prevent cyberattacks (White, 2016). They manage the information war between terrorist groups that may perform a cyberattack. Another way the U.S. addresses threats in cyberspace is by stopping the disruption of financial transactions that are made globally (White, 2016). The potential to attack these transactions is great because the information is being transmitted across the globe, wirelessly, through computers.

There are some legal and doctrinal issues when it comes to prosecuting cyberspace crimes. The fact that a suspect could be located anywhere on the globe as long as they have a computer and internet connection makes for the locating of criminals difficult. Once a suspect is located, the government of where they are located has to cooperate to help with the capture (White, 2016). The U.S. does not have global jurisdiction which would allow them to arrest someone anywhere in the world. They must rely on local governments to help them with arrests and prosecutions.

There needs to be a strong organizational framework if a strong cyber strategy is going to be developed to protect an organization. If there is not a strong organizational framework in place, then a company will be vulnerable to cyberattacks. Encryption of information is one way an organization can resist an attack. Encrypting their information makes it more difficult for a hacker to access (White, 2016). Another way to develop a strong framework is creating a strong firewall to keep hackers out.

The future of cyberspace can be viewed as both positive and negative. As technology continues to advance it will make life easier for individuals which is a positive. With the advancement though is new ways for attacks to happen which is a negative. Cyberwarfare has become the most complicated national security threat because technology is changing so quickly (White, 2016). As new technology is developed, new cyber threats will also be developed by criminals.

Conclusion

Having an organization that relies on computers to perform tasks makes potential vulnerabilities for that organization. Cybercrime is a broad term that defines many different ways that suspects attack people and organizations with the use of the internet and computers. Although cybercrime is a difficult and tasking crime to stop, there are many things that can be done to combat it. Having an organization with a proactive approach towards their information safety helps reduce cybercrime. Creating a strong firewall and potential traps for any cybercriminals is another way cybercrime can be reduced.

Organizations must also stay up to date on the latest laws regarding cyberwarfare and the protection of their information. As technology continues to advance, laws will continue to advance as well. Again, a proactive approach to laws regarding technology is also a must for organizations to be successful.

References

Chong, S. (2017). THE CHANGING FACE OF CYBERCRIME.Journal of The Australian & New Zealand Institute of Insurance & Finance,40(3), 41-44.

Dalsen, J. (2017). Technology, Disability, and Law: Then and Now.Journal of Special Education Technology,32(2), 102-108.

Eddolls, M. (2016). Feature: Making cybercrime prevention the highest priority.Network Security,20165-8. doi:10.1016/S1353-4858(16)30075-7

EPSTEIN, R. A. (2014). BEYOND TEXTUALISM: WHY ORIGINALIST THEORY MUST APPLY GENERAL PRINCIPLES OF INTERPRETATION TO CONSTITUTIONAL LAW.Harvard Journal of Law & Public Policy,37(3), 705-720.

GEIGER, C., & IZYUMENKO, E. (2016). THE ROLE OF HUMAN RIGHTS IN COPYRIGHT ENFORCEMENT ONLINE: ELABORATING A LEGAL FRAMEWORK FOR WEBSITE BLOCKING.American University International Law Review,32(1), 43-115.

Kanda, W., Sakao, T., & Hjelm, O. (2016). Components of business concepts for the diffusion of large scaled environmental technology systems.Journal of Cleaner Production,128(New approaches for transitions to low fossil carbon societies: promoting opportunities for effective development, diffusion and implementation of technologies, policies and strategies), 156-167. doi:10.1016/j.jclepro.2015.10.040

MIHAI, I. (2017). STRATEGIC DEVELOPMENTS IN THE FIELD OF CYBERCRIME FOR THE INVESTIGATION OF COMPROMISED ELEARNING SYSTEMS.eLearning & Software for Education,3358. doi:10.12753/2066-026X-17-227

Pincus, A. (2013). Evolving Technology and the Fourth Amendment: The Implications of Riley v. California.Cato Supreme Court Review, 307-336.

POST, K. C., BAYLESS, M. L., & GRUBBS, J. K. (2014). DIGITAL ASSETS: LAW AND TECHNOLOGY COLLIDE - A DILEMMA NEEDING A SOLUTION.Southern Journal of Business & Ethics,647-56.

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The Right to Digital Self-Defense. (2017).IEEE Security & Privacy, Security & Privacy, IEEE, IEEE Secur. Privacy, (4), 68. doi:10.1109/MSP.2017.3151324

Turner, K. (2017). The Rights of School Employee-Coaches under Title VII and Title IX in Educational Athletic Programs.ABA Journal of Labor & Employment Law,32(2), 229-253.

Uses for Computers in Business. (2017). Retrieved October 28, 2017, from http://smallbusiness .chron.com/uses-computers-business-56844.html

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