Security Threats to

Electronic Commerce

Objectives
Important computer and electronic
commerce security terms
Why secrecy, integrity, and necessity are
three parts of any security program
The roles of copyright and intellectual
property and their importance in any study
of electronic commerce

Objectives
Threats and counter measures to
eliminate or reduce threats
Specific threats to client machines,
Web servers, and commerce servers
Roles encryption and certificates play

Security Overview
Many fears to overcome
Intercepted e-mail messages
Unauthorized access to digital intelligence
Credit card information falling into the wrong
hands

Two types of computer security

Physical - protection of tangible objects
Logical - protection of non-physical objects

Security Overview
Countermeasures: physical or logical procedures that
recognize, reduce, or eliminate a threat

Computer Security Classification

Secrecy/Confidentiality
Protecting against unauthorized data disclosure and
ensuring the authenticity of the datas source

Privacy
The ability to ensure the use of information about
oneself

Integrity
Preventing unauthorized data modification by an
unauthorized party

Necessity
Preventing data delays or denials (removal)

Computer Security Classification

Nonrepudiation
Ensure that e-commerce participants do not
deny (i.e., repudiate) their online actions

Authenticity
The ability to identify the identity of a person
or entity with whom you are dealing on the
Internet

Copyright and
Intellectual Property
Copyright
Protecting expression
Literary and musical works
Pantomimes and choreographic works
Pictorial, graphic, and sculptural works
Motion pictures and other audiovisual works
Sound recordings
Architectural works

Copyright and
Intellectual Property
Intellectual property
The ownership of ideas and control over the
tangible or virtual representation of those ideas

U.S. Copyright Act of 1976

Protects previously stated items for a fixed
period of time
Copyright Clearance Center
Clearinghouse for U.S. copyright information

Intellectual Property Threats

The Internet presents a tempting target for
intellectual property threats
Very easy to reproduce an exact copy of
anything found on the Internet
People are unaware of copyright restrictions, and
unwittingly infringe on them
Fair use allows limited use of copyright material when
certain conditions are met

MANAGEMENT CHALLENGES
Designing systems that are neither overcontrolled nor under-controlled
Applying quality assurance standards in large
systems projects

Why Systems are Vulnerable

Advances in telecommunications and
computer software
Unauthorized access, abuse, or fraud
Hackers
Denial of service attack
Computer virus

Telecommunication Network
Vulnerabilities

Figure 14-1

Concerns for System Builders and

Users

Disaster

Destroys computer hardware, programs,

data files, and other equipment

Security
Prevents unauthorized access, alteration,
theft, or physical damage

Concerns for System Builders

and Users
Errors
Cause computers to disrupt or destroy
organizations record-keeping and
operations

System Quality Problems: Software

and Data
Bugs

Program code defects or errors

Maintenance Nightmare
Maintenance costs high due to
organizational change, software
complexity, and faulty system analysis
and design

Points in the Processing Cycle

where Errors can Occur

Figure 14-2

Data Quality Problems

Caused due to errors during data input
or faulty information system and
database design

The Cost of Errors over the Systems

Development Cycle

Figure 14-3

Overview
Controls
Methods, policies, and procedures
Ensures protection of organizations
assets
Ensures accuracy and reliability of
records, and operational adherence to
management standards

General Controls and Application

Controls

General controls

Establish framework for controlling

design, security, and use of computer
programs
Include software, hardware, computer
operations, data security,
implementation, and administrative
controls

Security Profiles for a Personnel

System

Figure 14-4

General Controls and Application

Controls
Application controls
Unique to each computerized application
Include input, processing, and output
controls

Protecting the Digital Firm

On-line transaction processing:
Transactions entered online are
immediately processed by computer
Fault-tolerant computer systems: Contain
extra hardware, software, and power
supply components

Protecting the Digital Firm

High-availability computing: Tools and
technologies enabling system to recover from a
crash
Disaster recovery plan: Runs business in event
of computer outage
Load balancing: Distributes large number of
requests for access among multiple servers
Mirroring: Duplicating all processes and
transactions of server on backup server to
prevent any interruption
Clustering: Linking two computers together so
that a second computer can act as a backup to
the primary computer or speed up processing

Security Threats in the

E-commerce Environment
Three
the

key points of vulnerability

client
communications pipeline
the server

Vulnerable Points in an
E-commerce Environment

Electronic Commerce
Threats

Client Threats

Active Content
Java applets, Active X controls, JavaScript, and
VBScript
Programs that interpret or execute instructions
embedded in downloaded objects
Malicious active content can be embedded into
seemingly innocuous Web pages -- launched when you
use your browser to view the page

Electronic Commerce
Threats

Client Threats -- Cookies

remember user names, passwords, and other

commonly referenced information

Exercise
Go to cookie FAQs on text links page or:
http://www.cookiecentral.com/faq/
Are cookies dangerous?
How did they get to be called cookies?
What are the benefits of cookies?

Graphics, Plug-ins, and

E-mail Attachments
Code can be embedded into graphic images
causing harm to your computer
Plug-ins are used to play audiovisual clips,
animated graphics
Could contain ill-intentioned commands hidden
within the object

E-mail attachments can contain destructive

macros within the document

Communication Channel
Threats
Secrecy Threats
Secrecy is the prevention of unauthorized
information disclosure - technical issue
Privacy is the protection of individual rights to
nondisclosure - legal issue regarding rights
Theft of sensitive or personal information is a
significant danger
Your IP address and browser you use are
continually revealed while on the web

Communication Channel
Threats
Anonymizer
A Web site that provides a measure of secrecy
as long as its used as the portal to the Internet
http://www.anonymizer.com
Check out Heres what we know about you

Integrity Threats
Also known as active wiretapping
Unauthorized party can alter data
Change the amount of a deposit or withdrawal

Communication Channel
Threats
Necessity Threats
Also known as delay or denial threats
Disrupt normal computer processing
Deny processing entirely
Slow processing to intolerably slow speeds
Remove file entirely, or delete information
from a transmission or file
Divert money from one bank account to
another

Server Threats
The more complex software becomes, the
higher the probability that errors (bugs)
exist in the code
Servers run at various privilege levels
Highest levels provide greatest access and
flexibility
Lowest levels provide a logical fence around a
running program

Server Threats
Contents of a servers folder names are
revealed to a Web browser
Cookies should never be transmitted
unprotected
Sensitive files such as username and
password pairs or credit card numbers
Hacking and Cracking -- the Web server
administrator is responsible for ensuring
that all sensitive files, are secure

Database Threats
Once a user is authenticated to a database,
selected database information is visible to
the user.
Security is often enforced through the use
of privileges
Some databases are inherently insecure and
rely on the Web server to enforce security
measures

Other Threats
Common Gateway Interface (CGI) Threats
CGIs are programs that present a security
threat if misused
CGI programs can reside almost anywhere on a
Web server and therefore are often difficult to
track down
CGI scripts do not run inside a sandbox, unlike
JavaScript

Other Threats
Other programming threats include
Programs executed by the server
Buffer overruns can cause errors
Runaway code segments

The Internet Worm attack was a runaway code

segment

Buffer overflow attacks occur when control is

released by an authorized program, but the
intruder code instructs control to be turned over
to it

Tools Available to Achieve Site

Security

Encryption
Transforms

plain text or data into cipher

text that cannot be read by anyone outside
of the sender and the receiver. Purpose:
to

secure stored information

to secure information transmission.
Cipher

text

text

that has been encrypted and thus cannot be

read by anyone besides the sender and the
receiver

Symmetric
DES

Key Encryption

standard most widely used

Encryption
Public

key cryptography

uses

two mathematically related digital keys: a

public key and a private key.

The

private key is kept secret by the owner,

and the public key is widely disseminated.
Both keys can be used to encrypt and
decrypt a message.
A key used to encrypt a message, cannot be
used to unencrypt the message

Public Key Cryptography A Simple Case

Public Key Cryptography with Digital

Signatures

Public Key Cryptography: Creating

a Digital Envelope

Securing Channels of Communications

Secure

Sockets Layer (SSL) is the most

common form of securing channels
Secure negotiated session
client-server

session where the requested

document URL, contents, forms, and cookies are
encrypted.

Session

key is a unique symmetric encryption

key chosen for a single secure session

Secure Negotiated Sessions Using

SSL

 Secure

Securing Channels of
Communications

Hypertext Transfer Protocol (S-

HTTP)
secure message-oriented communications
protocol for use with HTTP.
Virtual Private Networks (VPN)
remote

users can securely access internal

networks via Point-to-Point Tunneling Protocol
(PPTP)

Protecting Networks
Firewalls
software

applications that act as a filter

between a private network and the Internet

Proxy

server

server

that handles all communications

originating from or being sent to the Internet,
acting as a spokesperson or bodyguard for the
organization

Policies, Procedures, and Laws

Developing
perform

an e-commerce security plan

a risk assessment
develop a security policy
develop an implementation plan
create a security organization
perform a security audit

Tension Between Security and Other

Values

Ease

of use

Often

security slows down processors and adds

significantly to data storage demands. Too much
security can harm profitability; not enough can
mean going out of business.

Public

Safety & Criminal Use

claims

of individuals to act anonymously vs. needs

of public officials to maintain public safety in
light of criminals or terrorists.

Security Policy and

Integrated Security
Security policy is a written statement
describing what assets are to be
protected and why, who is responsible,
which behaviors are acceptable or not
Physical security
Network security
Access authorizations
Virus protection
Disaster recovery

Specific Elements of
a Security Policy
Authentication
Who is trying to access the site?
Access Control
Who is allowed to logon and access the site?
Secrecy
Who is permitted to view selected information
Data integrity
Who is allowed to change data?
Audit
What and who causes selected events to occur,
and when?

Computer Emergency Response

Team (CERT)
Housed at Carnegie Mellon University
Responds to security events and
incidents within the U.S. government
and private sector

Some questions
Can internet security measures actually create
opportunities for criminals to steal? How?
Why are some online merchants hesitant to ship to
international addresses?
What are some steps a company can take to thwart
cyber-criminals from within a business?
Is a computer with anti-virus software protected from
viruses? Why or why not?
What are the differences between encryption and
authentication?
Discuss the role of administration in implementing a
security policy?

Group Exercise
Given the shift to m-commerce, identify
and discuss the new security threats to
this type of technology?
What are some of the non-security
impacts on society?
Select a reporter and give a brief synopsis
of your views to the class.