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MIS CHAPTER 4 PERSONAL, LEGAL, ETHICAL, AND ORGANIZATIONAL ISSUES OF INFORMATION SYSTEMS Hossein BIDGOLI MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 1 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Risks Associated with Information Technologies • Misuses of information technology – Invade users’ privacy – Commit computer crimes • Minimize or prevent by: – Installing operating system updates regularly – Using antivirus software – Using e-mail security features MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 2 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Cookies • Cookies – Small text files with a unique ID tag – Embedded in a Web browser – Saved on the user’s hard drive • Can be useful or intrusive • Many users disable cookies – By installing a cookie manager – Or using Web browser options MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 3 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Spyware and Adware • Spyware – Software that secretly gathers information about users while they browse the Web – Can be used maliciously • Install antivirus or antispyware software • Adware – Form of spyware – Collects information about the user to display advertisements in the Web browser MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 4 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Phishing • Phishing – Sending fraudulent e-mails that seem to come from legitimate sources • Direct e-mail recipients to false Web sites – To capture private information MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 5 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Keyloggers • Keyloggers – Monitor and record keystrokes – Can be software or hardware devices – Sometimes used by companies to track employees’ use of e-mail and the Internet – Can be used for malicious purposes • Some antivirus and antispyware programs protect against software keyloggers MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 6 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Sniffing and Spoofing • Sniffing – Capturing and recording network traffic – Often used by hackers to intercept information • Spoofing – Attempt to gain access to a network by posing as an authorized user to find sensitive information MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 7 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Privacy Issues • Concerns about privacy in the workplace – Employers search social networking sites – Employee monitoring systems • Misuse and abuse of information gathered by: – Healthcare organizations – Financial institutions – Legal firms • Defining privacy is difficult – Information technologies have increased ease of access to information MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 8 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Privacy Issues (cont’d.) • Number of databases is increasing rapidly • Enforcement of federal laws has been lax • Index and link databases using Social Security numbers – Direct marketing companies are major users of this information • U.S. government began linking large databases to find information MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 9 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Privacy Issues (cont’d.) • Federal laws now regulate collecting and using information on people and corporations – 1970 Fair Credit Reporting Act • • • • Acceptable use policies Accountability Nonrepudiation Hardware or software controls – Determine what personal information is provided on the Web MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 10 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Data Collection on the Internet • Number of people shopping online is increasing • Some customers are reluctant to make online purchases – Concerns about hackers getting access to their credit card numbers – Many credit card companies reimburse fraudulent charges • Other electronic payment systems are being developed MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 11 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Data Collection on the Internet (cont’d.) • Concerned about computers’ contents being searched while they’re connected to the Internet • Information users provide on the Web – Combined with other information and technologies to produce new information • Log files – Generated by Web server software – Record a user’s actions on a Web site • Data collected on the Internet must be used and interpreted with caution MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 12 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Ethical Issues of Information Technologies • Ethics and ethical decision making – Moral guidelines people or organizations follow in dealing with others – More difficult to determine than legal versus illegal MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 13 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Ethical Issues of Information Technologies (cont’d.) • Information technology offers many opportunities for unethical behavior – Cybercrime, cyberfraud, identity theft, and intellectual property theft • Many associations promote ethically responsible use of information systems and technologies – Codes of ethics • Quick ethics test MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 14 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Intellectual Property • Intellectual property – Protections that involve copyrights, trademarks, trade secrets, and patents for “creations of the mind” developed by people or businesses • Industrial property – Inventions, trademarks, logos, industrial designs • Copyrighted material – Literary and artistic works – May apply to online materials – Exceptions under Fair Use Doctrine MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 15 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Intellectual Property (cont’d.) • Trademark – Protects product names and identifying marks • Patent – Protects new processes – Advantages of patents • Software piracy • Laws – Telecommunications Act of 1996 – Communications Decency Act (CDA) – Laws against spamming MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 16 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Intellectual Property (cont’d.) • Internet use policy – Guard against legal issues and avoid the risks • Cybersquatting – Registering, selling, or using a domain name to profit from someone else’s trademark MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 17 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Social Divisions and the Digital Divide • Digital divide – Computers still aren’t affordable for many people – Haves and have-nots – Companies installing cables for Internet connections might subject their communities to a type of economic “red-lining” • Children are often victims of this divide – Funding for computers at schools and libraries – Loaner programs MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 18 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems The Impact of Information Technology in the Workplace • New jobs for: – – – – – – – – – Programmers Systems analysts Database and network administrators Network engineers Webmasters Web page developers e-commerce specialists Chief information officers (CIOs) Technicians MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 19 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems The Impact of Information Technology in the Workplace (cont’d.) • • • • • Web designers Java programmers Web troubleshooters Telecommuting and virtual work Job deskilling – Skilled labor eliminated by introducing high technology – Job downgraded from a skilled to a semiskilled or unskilled position MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 20 Advantages and Disadvantages of Telecommuting MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 21 MIS CHAPTER 5 PROTECTING INFORMATION RESOURCES Hossein BIDGOLI MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 22 Exhibit 5.1 MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning The McCumber Cube 23 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Intentional Threats • • • • • • • • • Viruses Worms Trojan programs Logic bombs Backdoors Blended threats (e.g., worm launched by Trojan) Rootkits Denial-of-service attacks Social engineering MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 24 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Viruses • Type of malware • In 2008, the number of computer viruses in existence exceeded one million • Estimating the dollar amount of damage viruses cause can be difficult • Usually given names – I Love You, Michelangelo • Consists of self-propagating program code that’s triggered by a specified time or event MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 25 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Viruses (cont’d.) • Seriousness of viruses varies • Transmitted through a network and e-mail attachments – Bulletin or message boards • Virus hoaxes – Can cause as much damage as real viruses • Indications of a computer infected by a virus • Best measure against viruses – Installing and updating antivirus programs MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 26 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Worms • Travel from computer to computer in a network – Do not usually erase data • Independent programs that can spread themselves without having to be attached to a host program • Replicate into a full-blown version that eats up computing resources • Well-known worms – Code Red, Melissa, and Sasser MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 27 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Trojan Programs • Named after the Trojan horse the Greeks used to enter Troy during the Trojan Wars • Contains code intended to disrupt a computer, network, or Web site • Usually hidden inside a popular program MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 28 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Logic Bombs • Type of Trojan program used to release a virus, worm, or other destructive code • Triggered at a certain time or by an event MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 29 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Backdoors • Programming routine built into a system by its designer or programmer • Enable the designer or programmer to bypass system security and sneak back into the system later to access programs or files • System users aren’t aware a backdoor has been activated MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 30 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Blended Threats • Combine the characteristics of computer viruses, worms, and other malicious codes with vulnerabilities found on public and private networks • Main goal is not just to start and transmit an attack, but also to spread it • Multi-layer security system could guard against blended threats MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 31 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Denial-of-Service Attacks • Flood a network or server with service requests – Prevent legitimate users’ access to the system • Target Internet servers • Distributed denial-of-service (DDoS) attack – Hundreds or thousands of computers work together to bombard a Web site with thousands of requests for information in a short period – Difficult to trace MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 32 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Social Engineering • Using “people skills” to trick others into revealing private information – Takes advantage of the human element of security systems • Use the private information they’ve gathered to break into servers and networks and steal data • Commonly used social-engineering techniques – “Dumpster diving” and “shoulder surfing” MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 33 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Biometric Security Measures • Use a physiological element to enhance security measures • Devices and measures – – – – – – – Facial recognition Fingerprints Hand geometry Iris analysis Palmprints Retinal scanning Signature analysis MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning – Vein analysis – Voice recognition 34 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Callback Modems • Verify whether a user’s access is valid by: – Logging the user off – Calling the user back at a predetermined number • Useful in organizations with many employees who work off-site MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 35 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Firewalls • Combination of hardware and software • Act as a filter or barrier between a private network and external computers or networks • Network administrator defines rules for access • Examine data passing into or out of a private network – Decide whether to allow the transmission based on users’ IDs, the transmission’s origin and destination, and the transmission’s contents MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 36 Exhibit 5.3 MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning A Basic Firewall Configuration 37 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Firewalls (cont’d.) • Possible actions after examining packet – Reject the incoming packet – Send a warning to the network administrator – Send a message to the packet’s sender that the attempt failed – Allow the packet to enter (or leave) the private network MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 38 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Firewalls (cont’d.) • Main types of firewalls – Packet-filtering firewalls – Application-filtering firewalls – Proxy servers MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 39 Exhibit 5.4 MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning A Proxy Server 40 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Intrusion Detection Systems • • • • • • Protect against both external and internal access Placed in front of a firewall Prevent against DoS attacks Monitor network traffic “Prevent, detect, and react” approach Require a lot of processing power and can affect network performance MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 41 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Physical Security Measures • Primarily control access to computers and networks • Include: – – – – – – – Cable shielding Corner bolts Electronic trackers Identification (ID) badges Proximity-release door openers Room shielding Steel encasements MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 42 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Access Controls • Terminal resource security – Software feature that erases the screen and signs the user off automatically after a specified length of inactivity • Password – Combination of numbers, characters, and symbols that’s entered to allow access to a system – Length and complexity determine its vulnerability to discovery – Guidelines for strong passwords MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 43 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Virtual Private Networks • Provide a secure “tunnel” through the Internet – For transmitting messages and data via a private network • Remote users have a secure connection to the organization’s network • Low cost • Slow transmission speeds MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 44 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Data Encryption • Transforms data, called “plaintext” or “cleartext,” into a scrambled form called “ciphertext” • Rules for encryption determine how simple or complex the transformation process should be – Known as the “encryption algorithm” • Protocols: – Secure Sockets Layer (SSL) – Transport Layer Security (TLS) MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 45 Exhibit 5.7 MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning Using Encryption 46 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems E-commerce Transaction Security Measures • Three factors are critical for security: – Authentication – Confirmation – Nonrepudiation • Transaction security – – – – – Confidentiality Authentication Integrity Nonrepudiation of origin Nonrepudiation of receipt MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 47 Chapter 4 Personal, Legal, Ethical, and Organizational Issues of Information Systems Business Continuity Planning • Outlines procedures for keeping an organization operational • Prepare for disaster • Plan steps for resuming normal operations as soon as possible MIS, Chapter 4 ©2011 Course Technology, a part of Cengage Learning 48