Download Most Common Security Threats in the E

Online Security and Payment
Systems
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-1
Categories of Internet Crime Complaints
Reported to IC3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-2
Types of
Attacks
Against
Computer
Systems
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-3
The E-commerce Security Environment
Figure 5.4, Page 267
Slide 5-4
Customer and Merchant Perspectives on the
Different Dimensions of E-commerce Security
Slide 5-5
The Tension Between Security and
Other Values
Integrity
Confidentiality
Availability
Slide 5-6
A Typical
E-commerce
Transaction
Figure 5.5, Page 270
SOURCE: Boncella, 2000.
Slide 5-7
Vulnerable Points in an E-commerce
Environment
Figure 5.6, Page 271
SOURCE: Boncella, 2000.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-8
Most Common Security Threats in
the E-commerce Environment
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Malicious code (viruses, worms, Trojans)
Unwanted programs (spyware, browser parasites)
Phishing/identity theft
Hacking and cybervandalism
Credit card fraud/theft
Spoofing (pharming)/spam (junk) Web sites
DoS and DDoS attacks
Sniffing
Insider attacks
Poorly designed server and client software
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-9
Malicious Code

Viruses:



Worms:


Designed to spread from computer to computer
Trojan horse:


Replicate and spread to other files; most deliver
“payload” (destructive or benign)
Macro viruses, file-infecting viruses, script viruses
Appears benign, but does something other than
expected
Bots:

Covertly installed on computer; respond to external
commands sent by attacker
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Slide 5-10
Unwanted Programs

Installed without user’s informed consent

Browser parasites
 Can

monitor and change settings of a user’s browser
Adware
 Calls

for unwanted pop-up ads
Spyware
 Can
be used to obtain information, such as a user’s
keystrokes, e-mail, IMs, etc.
Slide 5-11
Phishing and Identity Theft

Any deceptive, online attempt by a third party
to obtain confidential information for financial
gain, e.g.

E-mail scam letter – most popular phishing attack

Spoofing legitimate financial institution’s Web site

Use information to commit fraudulent acts
(access checking accounts), steal identity

One of fastest growing forms of e-commerce
crime
Slide 5-12
Hacking and Cybervandalism

Hacker:


Cracker:


Individual who intends to gain unauthorized access to
computer systems
Hacker with criminal intent
Cybervandalism:

Intentionally disrupting, defacing, destroying Web site
Slide 5-13
Credit Card Fraud

Fear of stolen credit card information deters
online purchases

Hackers target credit card files and other
customer information files on merchant servers;
use stolen data to establish credit under false
identity

Online companies at higher risk than offline

In development: New identity verification
mechanisms
Slide 5-14
Spoofing (Pharming) and Spam
(Junk) Web Sites


Spoofing (Pharming)

Misrepresenting oneself by using fake e-mail
addresses or masquerading as someone else

Threatens integrity of site; authenticity
Spam (Junk) Web sites

Use domain names similar to legitimate one, redirect
traffic to spammer-redirection domains
Slide 5-15
DoS and DDoS Attacks

Denial of service (DoS) attack


Hackers flood Web site with useless traffic to
inundate and overwhelm network
Distributed denial of service (DDoS) attack

Hackers use multiple computers to attack target
network from numerous launch points
Slide 5-16
Other Security Threats

Sniffing:


Insider jobs


Eavesdropping program that monitors information
traveling over a network; enables hackers to steal
proprietary information from anywhere on a network
Single largest financial threat
Poorly designed server and client software

Increase in complexity of software programs has
contributed to increase in vulnerabilities that hackers
can exploit
Slide 5-17
Technology Solutions

Protecting Internet communications
(encryption)

Securing channels of communication (SSL,
S-HTTP, VPNs)

Protecting networks (firewalls)

Protecting servers and clients
Slide 5-18
Tools
Available to
Achieve Site
Security
Figure 5.9, Page 284
Slide 5-19
Protecting Internet Communications:
Encryption

Encryption

Transforming plain text, data into cipher text that can’t
be read by anyone other than sender and receiver

Secures stored information and information
transmission

Provides:
 Message
integrity
 Nonrepudiation
 Authentication
 Confidentiality
Slide 5-20
Symmetric Key Encryption

Also known as secret key encryption

Both sender and receiver use same digital
key to encrypt and decrypt message

Requires different set of keys for each
transaction

Advanced Encryption Standard (AES)


Most widely used symmetric key encryption

Uses 128-, 192-, and 256-bit encryption keys
Other standards use keys with up to 2,048
bits
Slide 5-21
Public Key Encryption

Uses two mathematically related digital keys

Public key (widely disseminated)

Private key (kept secret by owner)

Both keys used to encrypt and decrypt message

Once key used to encrypt message, same key
cannot be used to decrypt message

Sender uses recipient’s public key to encrypt
message; recipient uses his/her private key to
decrypt it
Slide 5-22
Public Key Cryptography – A Simple Case
Figure 5.10, Page 283
Slide 5-23
Public Key Encryption using Digital
Signatures and Hash Digests

Hash function:




Mathematical algorithm that produces fixed-length
number called message or hash digest
Hash digest of message sent to recipient along
with message to verify integrity
Hash digest and message encrypted with
sender’s public key
Entire cipher text then encrypted with recipient’s
private key – creating digital signature – for
authenticity, nonrepudiation
Slide 5-24
Public Key Cryptography with Digital Signatures
Figure 5.11, Page 288
Slide 5-25
Digital Envelopes

Addresses weaknesses of public key
encryption (computationally slow, decreases
transmission speed, increases processing
time) and symmetric key encryption (faster,
but less secure)

Uses symmetric key encryption to encrypt
document but public key encryption to
encrypt and send symmetric key
Slide 5-26
Public Key Cryptography: Creating a Digital
Envelope
Figure 5.12, Page 290
Slide 5-27
Digital Certificates and Public Key
Infrastructure (PKI)

Digital certificate includes:

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Name of subject/company
Subject’s public key
Digital certificate serial number
Expiration date, issuance date
Digital signature of certification authority (trusted
third party institution) that issues certificate
Other identifying information
Public Key Infrastructure (PKI): CAs and
digital certificate procedures that are
accepted by all parties
Slide 5-28
Digital Certificates and Certification Authorities
Figure 5.13, Page 291
Slide 5-29
Limits to Encryption Solutions

PKI applies mainly to protecting messages in
transit

PKI is not effective against insiders

Protection of private keys by individuals may be
haphazard

No guarantee that verifying computer of
merchant is secure

CAs are unregulated, self-selecting
organizations
Slide 5-30
Securing Channels of Communication

Secure Sockets Layer (SSL):


S-HTTP:


Establishes a secure, negotiated client-server
session in which URL of requested document,
along with contents, is encrypted
Provides a secure message-oriented
communications protocol designed for use in
conjunction with HTTP
Virtual Private Network (VPN):

Allows remote users to securely access internal
network via the Internet, using Point-to-Point
Tunneling Protocol (PPTP)
Slide 5-31
Secure Negotiated Sessions Using SSL
Figure 5.14, Page 295
Slide 5-32
Protecting Networks

Firewall

Hardware or software that filters packets

Prevents some packets from entering the network
based on security policy

Two main methods:
 Packet
filters
 Application

gateways
Proxy servers (proxies)

Software servers that handle all communications
originating from or being sent to the Internet
Slide 5-33
Firewalls and Proxy Servers
Slide 5-34
Protecting Servers and Clients

Operating system controls:


Authentication and access control mechanisms
Anti-virus software:

Easiest and least expensive way to prevent
threats to system integrity

Requires daily updates
Slide 5-35
Management Policies, Business
Procedures, and Public Laws

U.S. firms and organizations spend 10% of IT
budget on security hardware, software, services

Attacks against organizational computers down

Attacks against Web sites, individual records up

Technology a foundation of security

Effective management policies also required
Slide 5-36
A Security Plan: Management Policies

Risk assessment

Security policy

Implementation plan

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Security organization
Access controls
Authentication procedures
 Biometrics

Authorization policies
 Authorization

management systems
Security audit
Slide 5-37
Developing an E-commerce Security Plan
Figure 5.16, Page 300
Slide 5-38
Cash

Legal tender

Most common form of payment in terms of
number of transactions

Instantly convertible into other forms of value
without intermediation

Portable, requires no authentication

“Free” (no transaction fee), anonymous, low
cognitive demands

Limitations: easily stolen, limited to smaller
transaction, does not provide any float
Slide 5-39
Dimensions of Payment Systems
Table 5.6, Page 309
Slide 5-40
E-commerce Payment Systems

Credit cards are dominant form of online
payment, accounting for around 60% of
online payments

Other e-commerce payment systems:

Digital wallets

Digital cash

Online stored value payment systems

Digital accumulating balance systems

Digital checking
Slide 5-41
How an Online Credit Transaction Works
Figure 5.18, Page 312
Slide 5-42