Introduction to Security Structure in an Organization

2012

Information Security Structure and Cyber laws in India

Information Security Management Assignment#1
This document enlists the laws and acts in India for cyber-crimes along with the Information Security Structure.

Aditya Nagre (11030141034)

MBA IT Div A 6/16/2012

Information Security Structure and Cyber Laws of India

MBA IT Div A 11030141034

Contents
1.Introduction to Security Structure in an Organization ......................................................................................... 3

1.1 Security drivers ............................................................................................................................. 4 1.2 Security management ................................................................................................................... 4 1.3 Stakeholders ................................................................................................................................. 5
2.Privacy and Information Security Protection ....................................................................................................... 5 3. Introduction to Cyber Laws ................................................................................................................................ 6

3.1. What is Cyber Law? ...................................................................................................................... 6 3.2. Indian Cyber Laws ........................................................................................................................ 7
4 Need for Cyber Laws ........................................................................................................................................... 7 5 Indian Cyber Laws ............................................................................................................................................... 8 6 Cyber Laws in India .......................................................................................................................................... 10

6.1. Penalties and Adjudication ........................................................................................................ 10 6.1.1. Section 43............................................................................................................................ 10 6.1.2. Section 44............................................................................................................................ 11 6.1.3. Section 45............................................................................................................................ 11 6.1.4. Section 46............................................................................................................................ 11 6.1.5. Section 47............................................................................................................................ 12 6.2. Offences ..................................................................................................................................... 12 6.2.1. Section 65............................................................................................................................ 12 6.2.2. Section 66............................................................................................................................ 12 6.2.3. Section 67............................................................................................................................ 13 6.2.4. Section 68............................................................................................................................ 13 6.2.5. Section 69............................................................................................................................ 13 6.2.6. Section 71............................................................................................................................ 13 6.2.7. Section 72............................................................................................................................ 14 6.2.8. Section 73............................................................................................................................ 14 6.2.9. Section 74............................................................................................................................ 14 6.2.10. Section 77.......................................................................................................................... 14 6.2.11. Section 78.......................................................................................................................... 14 6.2.12. Section 85.......................................................................................................................... 15 6.3 IT Act of 2000 .............................................................................................................................. 15

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1. Introduction to Security Structure in an Organization

As part of the security architecture work I have put together the following information security model. The model introduces the topic of information security to business managers and CIOs. In the model there are three main areas:
1. 2. 3.

Security drivers Security management (the main part) Stakeholders

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1.1 Security drivers

Clearly if there were no drivers then we would not need to do any security. There are three major drivers for security work: 1. Laws & regulations : These are something than a company must comply with or face legal action or a fine. For example, complying with the Data protection law or the Company Act law is an example of the legal drivers. Complying with PCI DSS is an example of regulation drivers.

2. Business objectives : The company typically wants to generate profit and defines a set of business objectives. Security supports these business objectives by protecting systems and information that is used in the business processes. The business objective is to have on-line shop up 24/7. Security objective is to keep systems up and running, be it by keeping them free of malware that could disrupt or slow IT systems, or keeping attackers at bay.

3. Security threats : A tricky one in this context. Security threats work against laws & regulations and business objectives. However, they are driving information security as well and company needs to respond to threats in order to satisfy first 2 drivers.

1.2 Security management

In this area we have three frameworks that enable company to achieve objectives defined in the drivers section. 1. Policy framework This is a set of policies, standards and guidelines that describe how the company addresses information security drivers. All together these define security controls that are available for a company to implement. There are also International standards which can be source of information and controls for the Policy framework. Following are the components of framework: i. Policies ii. Standards iii. Artefacts

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1.3 Stakeholders

The stakeholders need to know that what has been promised is being delivered. The security professional need to show the value of security to business. This is the area where security professionals need to enhance their skills. Talk to your stakeholders, ask them what their concerns are and show them how you are addressing the concerns. Then send a report to them that relates to their area and concerns.

2. Privacy and Information Security Protection

This is a core requirement for any CCIM project or initiative. CCIM has implemented an Information Security and Privacy Policy Framework and governance structure to ensure compliance with applicable laws and regulations. The framework is influenced by standards, including the ISO 2700 series of standards for information security

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The Information Security and Privacy Management Program (ISPMP): To adhere to the Information Security and Privacy Policy framework and to meet CCIM privacy and security objectives, SPRM developed and implemented the Information Security and Privacy Management Program (ISPMP). The ISPMP provides:

Security and privacy advisory services to projects Assurance of compliance with applicable laws and regulations Development and maintenance of information security and privacy policies, processes and procedures Design and development of security architecture Threat/Risk Assessments (TRA) and Privacy Impact Assessments (PIA) Vulnerability Assessments (VA) and audits Incident management Security and privacy awareness for CCIM members and clients

3. Introduction to Cyber Laws

3.1. What is Cyber Law?
Cyber Law is the law governing cyber space. Cyber space is a very wide term and includes computers, networks, software, data storage devices (such as hard disks, USB disks etc), the Internet, websites, emails and even electronic devices such as cell phones, ATM machines etc. Law encompasses the rules of conduct: 1. That have been approved by the government, and 2. Which are in force over a certain territory, and 3. Which must be obeyed by all persons on that territory. Violation of these rules could lead to government action such as imprisonment or fine or an order to pay compensation. Cyber law encompasses laws relating to: Cyber Crimes: Cybercrimes are unlawful acts where the computer is used either as a tool or a target or both. Electronic and Digital Signatures: Electronic signatures are used to authenticate electronic records. Digital signatures are one type of electronic signature. Intellectual Property: Intellectual property is refers to creations of the human mind e.g. a story, a song, a painting, a design etc. The facets of intellectual property that relate to cyber space are covered by cyber law. Data Protection and Privacy: Data protection and privacy laws aim to achieve a fair balance between the privacy rights of the individual and the interests of data controllers such as banks, hospitals, email service providers etc. These laws seek to address the challenges to privacy caused by collecting, storing and transmitting data using new technologies.

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3.2. Indian Cyber Laws

Indian Cyber Laws were official born on 17th October 2000 with the Information Technology Act, 2000 coming into force. The primary purpose of the Act is to provide legal recognition to electronic commerce and to facilitate filing of electronic records with the Government. The IT Act also penalizes various cybercrimes and provides strict punishments (imprisonment terms up to 10 years and compensation up to Rs 1 crore). Minor errors in the Act were rectified by the Information Technology (Removal of Difficulties) Order, 2002 which was passed on 19 September 2002. The Cyber Regulations Appellate Tribunal (Procedure) Rules, 2000 also came into force on 17th October 2000. These rules prescribe the appointment and working of the Cyber Regulations Appellate Tribunal (CRAT) whose primary role is to hear appeals against orders of the Adjudicating Officers. The Indian Penal Code (as amended by the IT Act) penalizes several cybercrimes. These include forgery of electronic records, cyber frauds, destroying electronic evidence etc. Digital Evidence is to be collected and proven in court as per the provisions of the Indian Evidence Act (as amended by the IT Act). In case of bank records, the provisions of the Bankers Book Evidence Act (as amended by the IT Act) are relevant. Investigation and adjudication of cybercrimes is done in accordance with the provisions of the Code of Criminal Procedure and the IT Act.

4 Need for Cyber Laws

There are various reasons why it is extremely difficult for conventional law to cope with cyberspace. Some are cited below: Cyberspace is an intangible dimension that is impossible to govern and regulate using conventional law. Cyberspace has complete disrespect for jurisdictional boundaries. A person in India could break into a banks electronic vault hosted on a computer in USA and transfer millions of Rupees to another bank in Switzerland, all within minutes. All he would need is a laptop computer and a cell phone. Cyberspace handles gigantic traffic volumes every second. Billions of emails are crisscrossing the globe even as we read this, millions of websites are being accessed every minute and billions of dollars are electronically transferred around the world by banks every day. Cyberspace is absolutely open to participation by all. A ten year- old in Bhutan can have a live chat session with an eight year- old in Bali without any regard for the distance or the anonymity between them. Cyberspace offers enormous potential for anonymity to its members. Readily available encryption software and steganographic tools that seamlessly hide information within image and sound files ensure the confidentiality of information exchanged between cyber-citizens. Cyberspace offers never-seen-before economic efficiency. Billions of dollars worth of software can be traded over the Internet without the need for any
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government licenses, shipping and handling charges and without paying any customs duty. Electronic information has become the main object of cybercrime. It is characterized by extreme mobility, which exceeds by far the mobility of persons, goods or other services. International computer networks can transfer huge amounts of data around the globe in a matter of seconds. A software source code worth crores of rupees or a movie can be pirated across the globe within hours of their release. Theft of corporeal information (e.g. books, papers, CD ROMs, floppy disks) is easily covered by traditional penal provisions. However, the problem begins when electronic records are copied quickly, inconspicuously and often via telecommunication facilities. Here the original information, so to say, remains in the possession of the owner and yet information gets stolen.

5 Indian Cyber Laws

Act / Law Information Technology Act, 2000 (IT Act) Year / Date of enforcement 17 October 2000 The primary purpose of the Act is to provide legal recognition to electronic commerce and to facilitate filing of electronic records with the Government. The IT Act also penalizes various cyber crimes and provides strict punishments (imprisonment terms upto 10 years and compensation up to Rs 1 crore). Executive Order 12 2002 September Contained instructions relating provisions of the Act with regard to protected systems and application for the issue of a Digital Signature Certificate. Information Technology (Removal of Difficulties) Order Negotiable Instruments (Amendments Miscellaneous Act Information Technology (Use of Electronic Records and Digital Signatures) Rules 2004 Has provided the necessary legal framework for filing of documents with the Government as well as issue of licenses by the Government. and Provisions) 2002 IT Act amended . This introduced the concept of electronic cheques and truncated cheques. 19 2002 September Minor errors of IT- Act 2000 were rectified in this order. Description

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It also provides for payment and receipt of fees in relation to the Government bodies. Information Rules Technology 2000 These rules prescribe the eligibility, appointment and working of Certifying Authorities (CA). These rules also lay down the technical standards, procedures and security methods to be used by a CA. These rules were amended in 2003, 2004 and 2006. Information Regulations Technology 9 July 2001 Two important guidelines relating to CAs were issued. The first are the Guidelines for submission of application for license to operate as a Certifying Authority under the IT Act. These guidelines were issued on 9th July 2001. Next were the Guidelines for submission of certificates and certification revocation lists to the Controller of Certifying Authorities for publishing in National Repository of Digital Certificates. Cyber Regulations Appellate Tribunal (Procedure) Rules 17th 2000 October These rules prescribe the appointment and working of the Cyber Regulations Appellate Tribunal (CRAT) whose primary role is to hear appeals against orders of the Adjudicating Officers. Information Technology 17th March 2003 These rules prescribe the qualifications required for Adjudicating Officers. Their chief responsibility under the IT Act is to adjudicate on cases such as unauthorized access, unauthorized copying of data, spread of viruses, denial of service attacks, disruption of computers, computer manipulation etc. of (Qualification and Experience of Adjudicating Officers Rules and Manner Holding Enquiry) (Certifying Authority)

(Certifying Authorities)

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6 Cyber Laws in India

6.1. Penalties and Adjudication
6.1.1. Section 43

Penalty for damage to computer, computer system, etc. If any person without permission of the owner or any other person who is in- charge of a computer, computer system or computer network1) accesses or secures access to such computer, computer system or computer network; 2) downloads, copies or extracts any data, computer data base or information from such computer, computer system or computer network including information or data held or stored in any removable storage medium; 3) introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network; 4) damages or causes to be damaged any computer, computer system or computer network, data, computer data base or any other programmes residing in such computer, computer system or computer network; 5) disrupts or causes disruption of any computer, computer system or computer network; 6) denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means; 7) provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder; 8) charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system, or computer network, he shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected. ExplanationFor the purposes of this section 1) "computer contaminant" means any set of computer instructions that are designed a. to modify, destroy, record, transmit data or programme residing within a computer, computer system or computer network; or b. by any means to usurp the normal operation of the computer, computer system, or computer network; 2) "computer data base" means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepared in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network; 3) "computer virus" means any computer instruction, information, data or programme that destroys, damages, degrades or adversely affects the performance of a computer resource or attaches itself to another computer resource and operates when a programme, data or instruction is executed or some other event takes place in that computer resource;

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4) "damage" means to destroy, alter, delete, add, modify or rearrange any computer resource by any means.
6.1.2. Section 44

Penalty for failure to furnish information return, etc. If any person who is required under this Act or any rules or regulations made thereunder to1) furnish any document, return or report to the Controller or the Certifying Authority fails to furnish the same, he shall be liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure; 2) file any return or furnish any information, books or other documents within the time specified therefore in the regulations fails to file return or furnish the same within the time specified therefore in the regulations, he shall be liable to a penalty not exceeding five thousand rupees for every day during which such failure continues; 3) maintain books of account or records, fails to maintain the same, he shall be liable to a penalty not exceeding ten thousand rupees for every day during which the failure continues.
6.1.3. Section 45

Residuary penalty Whoever contravenes any rules or regulations made under this Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees.
6.1.4. Section 46

Power to adjudicate 1) For the purpose of adjudging under this Chapter whether any person has committed a contravention of any of the provisions of this Act or of any rule, regulation, direction or order made thereunder the Central Government shall, subject to the provisions of sub-section (3), appoint any officer not below the rank of a Director to the Government of India or an equivalent officer of a State Government to be an adjudicating officer for holding an inquiry in the manner prescribed by the Central Government. 2) The adjudicating officer shall, after giving the person referred to in sub-section (1) a reasonable opportunity for making representation in the matter and if, on such inquiry, he is satisfied that the person has committed the contravention, he may impose such penalty or award such compensation as he thinks fit in accordance with the provisions of that section. 3) No person shall be appointed as an adjudicating officer unless he possesses such experience in the field of Information Technology and legal or judicial experience as may be prescribed by the Central Government.

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4) Where more than one adjudicating officers are appointed, the Central Government shall specify by order the matters and places with respect to which such officers shall exercise their jurisdiction. 5) Every adjudicating officer shall have the powers of a civil court which are conferred on the Cyber Appellate Tribunal under sub-section (2) of section 58, and a. all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code; b. shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973.
6.1.5. Section 47

Factors to be taken into account by the adjudicating officer While adjudging the quantum of compensation under this Chapter, the adjudicating officer shall have due regard to the following factors, namely: 1) the amount of gain of unfair advantage, wherever quantifiable, made as a result of the default; 2) the amount of loss caused to any person as a result of the default; 3) the repetitive nature of the default.

6.2. Offences
6.2.1. Section 65 Tampering with computer source documents Whoever knowingly or intentionally conceals, destroys or alters or intentionally or knowingly causes another to conceal, destroy or alter any computer source code used for a computer, computer programme, computer system or computer network, when the computer source code is required to be kept or maintained by law for the time being in force, shall be punishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both. Explanation.For the purposes of this section, "computer source code" means the listing of programmes, computer commands, design and layout and programme analysis of computer resource in any form. 6.2.2. Section 66 Hacking with computer system 1) Whoever with the intent to cause or knowing that he is likely to cause wrongful loss or damage to the public or any person destroys or deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means, commits hacking. 2) Whoever commits hacking shall be punished with imprisonment up to three years, or with fine which may extend upto two lakh rupees, or with both.

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6.2.3. Section 67 Publishing of information which is obscene in electronic form Whoever publishes or transmits or causes to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to one lakh rupees and in the event of a second or subsequent conviction with imprisonment of either description for a term which may extend to ten years and also with fine which may extend to two lakh rupees. 6.2.4. Section 68 Power of Controller to give directions 1) The Controller may, by order, direct a Certifying Authority or any employee of such Authority to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made thereunder. 2) Any person who fails to comply with any order under subsection (1) shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding three years or to a fine not exceeding two lakh rupees or to both. 6.2.5. Section 69 Directions of Controller to a subscriber to extend facilities to decrypt information 1) If the Controller is satisfied that it is necessary or expedient so to do in the interest of the sovereignty or integrity of India, the security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence, for reasons to be recorded in writing, by order, direct any agency of the Government to intercept any information transmitted through any computer resource. 2) The subscriber or any person in charge of the computer resource shall, when called upon by any agency which has been directed under sub-section (1), extend all facilities and technical assistance to decrypt the information. 3) The subscriber or any person who fails to assist the agency referred to in sub-section (2) shall be punished with an imprisonment for a term which may extend to seven years. 6.2.6. Section 71 Penalty for misrepresentation Whoever makes any misrepresentation to, or suppresses any material fact from, the Controller or the Certifying Authority for obtaining any license or Digital Signature Certificate, as the case may be, shall be punished with imprisonment for a term which

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may extend to two years, or with fine which may extend to one lakh rupees, or with both. 6.2.7. Section 72 Penalty for breach of confidentiality and privacy Save as otherwise provided in this Act or any other law for the time being in force, any person who, in pursuance of any of the powers conferred under this Act, rules or regulations made thereunder, has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. 6.2.8. Section 73 Penalty for publishing Digital Signature Certificate false in certain particulars 1) No person shall publish a Digital Signature Certificate or otherwise make it available to any other person with the knowledge that a. the Certifying Authority listed in the certificate has not issued it; or b. the subscriber listed in the certificate has not accepted it; or c. the certificate has been revoked or suspended, unless such publication is for the purpose of verifying a digital signature created prior to such suspension or revocation. 2) Any person who contravenes the provisions of sub-section (1) shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. 6.2.9. Section 74 Publication for fraudulent purpose Whoever knowingly creates, publishes or otherwise makes available a Digital Signature Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. 6.2.10. Section 77 Penalties or confiscation not to interfere with other punishments No penalty imposed or confiscation made under this Act shall prevent the imposition of any other punishment to which the person affected thereby is liable under any other law for the time being in force. 6.2.11. Section 78

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Power to investigate offences Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a police officer not below the rank of Deputy Superintendent of Police shall investigate any offence under this Act Offences by companies. 6.2.12. Section 85 Offences by companies 1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. 2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. ExplanationFor the purposes of this section(i) "company" means anybody corporate and includes a firm or other association of individuals; and (ii) "director", in relation to a firm, means a partner in the firm.

6.3 IT Act of 2000

This Act aims to provide the legal infrastructure for e-commerce in India. And the cyber laws have a major impact for e-businesses and the new economy in India. So, it is important to understand what are the various perspectives of the IT Act, 2000 and what it offers. The Information Technology Act, 2000 also aims to provide for the legal framework so that legal sanctity is accorded to all electronic records and other activities carried out by electronic means. The Act states that unless otherwise agreed, an acceptance of contract may be expressed by electronic means of communication and the same shall have legal validity and enforceability. Some highlights of the Act are listed below: Chapter-II of the Act specifically stipulates that any subscriber may authenticate an electronic record by affixing his digital signature. It further states that any person can verify an electronic record by use of a public key of the subscriber.

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Chapter-III of the Act details about Electronic Governance and provides inter alia amongst others that where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is - rendered or made available in an electronic form; and accessible so as to be usable for a subsequent reference The said chapter also details the legal recognition of Digital Signatures. Chapter-IV of the said Act gives a scheme for Regulation of Certifying Authorities. The Act envisages a Controller of Certifying Authorities who shall perform the function of exercising supervision over the activities of the Certifying Authorities as also laying down standards and conditions governing the Certifying Authorities as also specifying the various forms and content of Digital Signature Certificates. The Act recognizes the need for recognizing foreign Certifying Authorities and it further details the various provisions for the issue of license to issue Digital Signature Certificates. Chapter-VII of the Act details about the scheme of things relating to Digital Signature Certificates. The duties of subscribers are also enshrined in the said Act. Chapter-IX of the said Act talks about penalties and adjudication for various offences. The penalties for damage to computer, computer systems etc. has been fixed as damages by way of compensation not exceeding Rs. 1,00,00,000 to affected persons. The Act talks of appointment of any officers not below the rank of a Director to the Government of India or an equivalent officer of state government as an Adjudicating Officer who shall adjudicate whether any person has made a contravention of any of the provisions of the said Act or rules framed there under. The said Adjudicating Officer has been given the powers of a Civil Court. Chapter-X of the Act talks of the establishment of the Cyber Regulations Appellate Tribunal, which shall be an appellate body where appeals against the orders passed by the Adjudicating Officers, shall be preferred. Chapter-XI of the Act talks about various offences and the said offences shall be investigated only by a Police Officer not below the rank of the Deputy Superintendent of Police. These offences include tampering with computer source documents, publishing of information, which is obscene in electronic form, and hacking. The Act also provides for the constitution of the Cyber Regulations Advisory Committee, which shall advice the government as regards any rules, or for any other purpose connected with the said act. The said Act also proposes to amend the Indian Penal Code, 1860, the Indian Evidence Act, 1872, The Bankers' Books Evidence Act, 1891, The Reserve Bank of India Act, 1934 to make them in tune with the provisions of the IT Act.

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