Chapter

7.1 (week 13 )
Security and Ethical Challenges

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
Identify several ethical issues in how the use of information technologies in business affects
Employment Individuality Working conditions

Privacy
Crime Health Solutions to societal problems

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Learning Objectives
Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology

Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of information technology
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Case 1: Ethics, Moral Dilemmas, and Tough Decisions

The pervasive use of IT in organizations and society present individuals with new ethical challenges and dilemmas. If companies dont set ethical policies and guidelines, or dont make sure that employees know what they are and understand them, companies cannot hold workers accountable for their unethical behavior.

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Case Study Questions

1. Companies are developing ethical policies and guidelines for legal reasons, but also to clarify what is acceptable and what is not. Do you think any of the issues raised in the case required clarification? Would you take exception to any of them being classified as inappropriate behavior? Why do you think these things happen anyway? 2. In the first example (Bryans), it is apparent that he did not believe justice had been ultimately served by the decision his company made. Should he have taken the issue to the authorities? Or, was it enough that he reported the problem through the proper channels and let the organization handle it, as was the recommendation of Linn Hynds? Provide a rationale for the position you are willing to take on this matter.
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Case Study Questions

3. In the case, Gary chose not to stop his boss from installing unlicensed software, although he refused to do it himself. If installing unlicensed software is wrong, is there any difference between refusing to do it versus not stopping somebody else? Do you buy his argument that it was not really going to hurt anybody? Why or why not?

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IT Security, Ethics, and Society

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IT Security, Ethics, and Society

Information technology has both beneficial and detrimental effects on society and people
Manage work activities to minimize the detrimental effects of information technology Optimize the beneficial effects
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Business Ethics

Ethics questions that managers confront as part of their daily business decision making include
Equity Rights Honesty

Exercise of corporate power

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Categories of Ethical Business Issues

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Corporate Social Responsibility Theories

Stockholder Theory
Managers are agents of the stockholders Their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices

Social Contract Theory

Companies have ethical responsibilities to all members of society, who allow corporations to exist

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Corporate Social Responsibility Theories

Stakeholder Theory
Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders Stakeholders are all individuals and groups that have a stake in, or claim on, a company

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Principles of Technology Ethics

Proportionality
The good achieved by the technology must outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk

Informed Consent
Those affected by the technology should understand and accept the risks

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Principles of Technology Ethics

Justice
The benefits and burdens of the technology should be distributed fairly. Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk

Minimized Risk
Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk
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AITP Standards of Professional Conduct

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Responsible Professional Guidelines

A responsible professional
Acts with integrity Increases personal competence

Sets high standards of personal performance

Accepts responsibility for his/her work Advances the health, privacy, and general welfare of the public
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Computer Crime
Computer crime includes
Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources The unauthorized release of information The unauthorized copying of software Denying an end user access to his/her own hardware, software, data, or network resources Using or conspiring to use computer or network resources illegally to obtain information or tangible property
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Hacking
Hacking is
The obsessive use of computers The unauthorized access and use of networked computer systems

Electronic Breaking and Entering

Hacking into a computer system and reading files, but neither stealing nor damaging anything

Cracker
A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage
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Common Hacking Tactics

Denial of Service
Hammering a websites equipment with too many requests for information
Clogging the system, slowing performance, or crashing the site

Scans
Widespread probes of the Internet to determine types of computers, services, and connections Looking for weaknesses
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Common Hacking Tactics

Sniffer
Programs that search individual packets of data as they pass through the Internet Capturing passwords or entire contents

Spoofing
Faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers

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Common Hacking Tactics

Trojan House
A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software

Back Doors
A hidden point of entry to be used in case the original entry point is detected or blocked

Malicious Applets
Tiny Java programs that misuse your computers resources, modify files on the hard disk, send fake email, or steal passwords
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Common Hacking Tactics

War Dialing
Programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection

Logic Bombs
An instruction in a computer program that triggers a malicious act

Buffer Overflow
Crashing or gaining control of a computer by sending too much data to buffer memory
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Common Hacking Tactics

Password Crackers
Software that can guess passwords

Social Engineering
Gaining access to computer systems by talking unsuspecting company employees out of valuable information, such as passwords

Dumpster Diving
Sifting through a companys garbage to find information to help break into their computers
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Cyber Theft
Many computer crimes involve the theft of money The majority are inside jobs that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved Many attacks occur through the Internet Most companies dont reveal that they have been targets or victims of cybercrime

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Unauthorized Use at Work

Unauthorized use of computer systems and networks is time and resource theft
Doing private consulting Doing personal finances

Playing video games Unauthorized use of the Internet or company networks

Sniffers
Used to monitor network traffic or capacity Find evidence of improper use
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Internet Abuses in the Workplace

General email abuses Unauthorized usage and access Copyright infringement/plagiarism Newsgroup postings Transmission of confidential data Pornography Hacking Non-work-related download/upload Leisure use of the Internet Use of external ISPs Moonlighting
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Software Piracy

Software Piracy
Unauthorized copying of computer programs

Licensing
Purchasing software is really a payment for a license for fair use

Site license allows a certain number of copies

A third of the software industrys revenues are lost to 13-27 piracy

Theft of Intellectual Property

Intellectual Property
Copyrighted material Includes such things as music, videos, images, articles, books, and software

Copyright Infringement is Illegal

Peer-to-peer networking techniques have made it easy to trade pirated intellectual property

Publishers Offer Inexpensive Online Music

Illegal downloading of music and video is down and continues to drop

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Viruses and Worms

A virus is a program that cannot work without being inserted into another program
A worm can run unaided

These programs copy annoying or destructive routines into networked computers

Copy routines spread the virus

Commonly transmitted through

The Internet and online services Email and file attachments Disks from contaminated computers Shareware

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Top Five Virus Families of all Time

My Doom, 2004
Spread via email and over Kazaa file-sharing network Installs a back door on infected computers Infected email poses as returned message or one that cant be opened correctly, urging recipient to click on attachment Opens up TCP ports that stay open even after termination of the worm Upon execution, a copy of Notepad is opened, filled with nonsense characters
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Top Five Virus Families of all Time

Netsky, 2004
Mass-mailing worm that spreads by emailing itself to all email addresses found on infected computers Tries to spread via peer-to-peer file sharing by copying itself into the shared folder It renames itself to pose as one of 26 other common files along the way
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Top Five Virus Families of all Time

SoBig, 2004
Mass-mailing email worm that arrives as an attachment
Examples: Movie_0074.mpg.pif, Document003.pif

Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking for email addresses to which it can send itself
Also attempts to download updates for itself

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Top Five Virus Families of all Time

Klez, 2002
A mass-mailing email worm that arrives with a randomly named attachment Exploits a known vulnerability in MS Outlook to auto-execute on unpatched clients Tries to disable virus scanners and then copy itself to all local and networked drives with a random file name Deletes all files on the infected machine and any mapped network drives on the 13th of all even-numbered months
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Top Five Virus Families of all Time

Sasser, 2004
Exploits a Microsoft vulnerability to spread from computer to computer with no user intervention Spawns multiple threads that scan local subnets for vulnerabilities

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The Cost of Viruses, Trojans, Worms

Cost of the top five virus families
Nearly 115 million computers in 200 countries were infected in 2004 Up to 11 million computers are believed to be permanently infected In 2004, total economic damage from virus proliferation was $166 to $202 billion

Average damage per computer is between $277 and $366

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Adware and Spyware

Adware
Software that purports to serve a useful purpose, and often does Allows advertisers to display pop-up and banner ads without the consent of the computer users

Spyware
Adware that uses an Internet connection in the background, without the users permission or knowledge Captures information about the user and sends it over the Internet

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Spyware Problems
Spyware can steal private information and also
Add advertising links to Web pages Redirect affiliate payments Change a users home page and search settings Make a modem randomly call premium-rate phone numbers Leave security holes that let Trojans in Degrade system performance

Removal programs are often not completely successful in eliminating spyware

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Privacy Issues
The power of information technology to store and retrieve information can have a negative effect on every individuals right to privacy
Personal information is collected with every visit to a Web site
Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused

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Opt-in Versus Opt-out

Opt-In
You explicitly consent to allow data to be compiled about you This is the default in Europe

Opt-Out
Data can be compiled about you unless you specifically request it not be

This is the default in the U.S.

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Privacy Issues
Violation of Privacy
Accessing individuals private email conversations and computer records Collecting and sharing information about individuals gained from their visits to Internet websites

Computer Monitoring
Always knowing where a person is Mobile and paging services are becoming more closely associated with people than with places
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Privacy Issues
Computer Matching
Using customer information gained from many sources to market additional business services

Unauthorized Access of Personal Files

Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles

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Protecting Your Privacy on the Internet

There are multiple ways to protect your privacy
Encrypt email Send newsgroup postings through anonymous remailers Ask your ISP not to sell your name and information to mailing list providers and other marketers Dont reveal personal data and interests on online service and website user profiles
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Privacy Laws
Electronic Communications Privacy Act and Computer Fraud and Abuse Act
Prohibit intercepting data communications messages, stealing or destroying data, or trespassing in federal-related computer systems

U.S. Computer Matching and Privacy Act

Regulates the matching of data held in federal agency files to verify eligibility for federal programs
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Privacy Laws
Other laws impacting privacy and how much a company spends on compliance
Sarbanes-Oxley Health Insurance Portability and Accountability Act (HIPAA) Gramm-Leach-Bliley USA Patriot Act California Security Breach Law Securities and Exchange Commission rule 17a-4
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Computer Libel and Censorship

The opposite side of the privacy debate
Freedom of information, speech, and press

Biggest battlegrounds
Bulletin boards Email boxes Online files of Internet and public networks

Weapons used in this battle

Spamming Flame mail Libel laws Censorship

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Computer Libel and Censorship

Spamming
Indiscriminate sending of unsolicited email messages to many Internet users

Flaming
Sending extremely critical, derogatory, and often vulgar email messages or newsgroup posting to other users on the Internet or online services Especially prevalent on special-interest newsgroups
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Cyberlaw

Laws intended to regulate activities over the Internet or via electronic communication devices
Encompasses a wide variety of legal and political issues Includes intellectual property, privacy, freedom of expression, and jurisdiction
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Cyberlaw
The intersection of technology and the law is controversial
Some feel the Internet should not be regulated Encryption and cryptography make traditional form of regulation difficult The Internet treats censorship as damage and simply routes around it

Cyberlaw only began to emerge in 1996

Debate continues regarding the applicability of legal principles derived from issues that had nothing to do with cyberspace

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Other Challenges
Employment
IT creates new jobs and increases productivity It can also cause significant reductions in job opportunities, as well as requiring new job skills

Computer Monitoring
Using computers to monitor the productivity and behavior of employees as they work Criticized as unethical because it monitors individuals, not just work, and is done constantly Criticized as invasion of privacy because many employees do not know they are being monitored

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Other Challenges
Working Conditions
IT has eliminated monotonous or obnoxious tasks
However, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles

Individuality
Dehumanizes and depersonalizes activities because computers eliminate human relationships
Inflexible systems

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Health Issues
Cumulative Trauma Disorders (CTDs)
Disorders suffered by people who sit at a PC or terminal and do fast-paced repetitive keystroke jobs

Carpal Tunnel Syndrome

Painful, crippling ailment of the hand and wrist

Typically requires surgery to cure

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Ergonomics

Designing healthy work environments

Safe, comfortable, and pleasant for people to work in Increases employee morale and productivity Also called human factors engineering
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Ergonomics Factors

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Societal Solutions
Using information technologies to solve human and social problems
Medical diagnosis Computer-assisted instruction Governmental program planning Environmental quality control Law enforcement Job placement

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Societal Solutions

The detrimental effects of information technology

Often caused by individuals or organizations not accepting ethical responsibility for their actions

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Security Management of IT
The Internet was developed for interoperability, not impenetrability
Business managers and professionals alike are responsible for the security, quality, and performance of business information systems Hardware, software, networks, and data resources must be protected by a variety of security measures

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Case 2: Raymond James Financial, BCD Travel, Houston Texans, and Others
For companies like Raymond James, leakage of sensitive customer data or proprietary information is a new priority. Companies are starting to focus on keeping sensitive information within their boundaries. Companies are deploying Outbound content management tools to monitor outgoing information. Companies not only have to monitor e-mail messages, but also the explosion of alternative communication mechanisms that employees are using, including instant messaging, blogs, FTP transfers, Web mail, and message boards.
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Case Study Questions

1. Barring illegal activities, why do you think that employees in the organizations featured in the case do not realize themselves the dangers of loosely managing proprietary and sensitive information? Would you have thought of these issues? 2. How should organizations strike the right balance between monitoring and invading their employees privacy, even if it would be legal for them to do so? Why is it important that companies achieve this balance? What would be the consequences of being too biased to one side? 3. The IT executives in the case all note that outbound monitoring and management technologies are only part of an overall strategy, and not their primary defense. What should be the other components of this strategy? Which weight would you give to human and technological factors? Why?
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Security Management

The goal of security management is the accuracy, integrity, and safety of all information system processes and resources

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Internetworked Security Defenses

Encryption
Data is transmitted in scrambled form It is unscrambled by computer systems for authorized users only The most widely used method uses a pair of public and private keys unique to each individual

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Public/Private Key Encryption

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Internetworked Security Defenses

Firewalls
A gatekeeper system that protects a companys intranets and other computer networks from intrusion

Provides a filter and safe transfer point for access to/from the Internet and other networks
Important for individuals who connect to the Internet with DSL or cable modems Can deter hacking, but cannot prevent it
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Internet and Intranet Firewalls

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Denial of Service Attacks

Denial of service attacks depend on three layers of networked computer systems

The victims website
The victims Internet service provider Zombie or slave computers that have been commandeered by the cybercriminals
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Defending Against Denial of Service

At Zombie Machines
Set and enforce security policies Scan for vulnerabilities

At the ISP
Monitor and block traffic spikes

At the Victims Website

Create backup servers and network connections
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Internetworked Security Defenses

Email Monitoring
Use of content monitoring software that scans for troublesome words that might compromise corporate security

Virus Defenses
Centralize the updating and distribution of antivirus software

Use a security suite that integrates virus protection with firewalls, Web security, and content blocking features
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Other Security Measures

Security Codes
Multilevel password system Encrypted passwords Smart cards with microprocessors

Backup Files
Duplicate files of data or programs

Security Monitors
Monitor the use of computers and networks Protects them from unauthorized use, fraud, and destruction
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Other Security Measures

Biometrics
Computer devices measure physical traits that make each individual unique
Voice recognition, fingerprints, retina scan

Computer Failure Controls

Prevents computer failures or minimizes its effects Preventive maintenance Arrange backups with a disaster recovery organization
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Other Security Measures

In the event of a system failure, faulttolerant systems have redundant processors, peripherals, and software that provide
Fail-over capability: shifts to back up components
Fail-save capability: the system continues to operate at the same level Fail-soft capability: the system continues to operate at a reduced but acceptable level
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Other Security Measures

A disaster recovery plan contains formalized procedures to follow in the event of a disaster
Which employees will participate

What their duties will be

What hardware, software, and facilities will be used Priority of applications that will be processed Use of alternative facilities Offsite storage of databases
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Information System Controls

Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

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Auditing IT Security

IT Security Audits
Performed by internal or external auditors Review and evaluation of security measures and management policies Goal is to ensure that that proper and adequate measures and policies are in place
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Protecting Yourself from Cybercrime

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Case 3: Cyberscams and Cybercriminals

Cyberscams are todays fastest-growing criminal niche
87 percent of companies surveyed reported a security incident

The U.S. Federal Trade Commission says identity theft is its top complaint
eBay has 60 people combating fraud; Microsoft has 65 Stolen credit card account numbers are regularly sold online
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Case Study Questions

1. List several reasons cyber scams are todays fastest growing criminal niche. Explain why the reasons you give contribute to the growth of cyber scams. 2. What are several security measures that could be implemented to combat the spread of cyber scams? Explain why your suggestions would be effective. 3. Which of the four top cyber criminals described in this case poses the biggest threat to businesses? To consumers? Explain the reasons for your choices, and describe how businesses and consumers can protect themselves from these cyber scammers.
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Case 4: Lowes, TCI, Bank of America, ChoicePoint, and Others

Security Breach Headlines
Identity thieves stole information on 145,000 people from ChoicePoint Bank of America lost backup tapes that held data on over 1 million credit card holders DSW had its stores credit card data breached; over 1 million had been accessed

Corporate America is finally owning up to a long-held secret

It cant safeguard its most valuable data
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Case Study Questions

1. Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies?

2. What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources like the incident at Lowes?
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Case Study Questions

3. What security safeguards would have deterred the loss of customer data at TCI, Bank of America, and ChoicePoint? Defend your proposed security measures to avoid the incidents that occurred at each company.

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