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STUDY GUIDE FOR MODULE NO. ___

THE NEED FOR SECURITY

MODULE OVERVIEW

Unlike any other information technology program, the primary mission of an information security program is to
ensure that systems and their contents remain the same. Organizations expend hundreds of thousands of
dollars and thousands of man-hours to maintain their information systems. If threats to information and systems
didn’t exist, these resources could be used to improve the systems that support the information. However,
attacks on information systems are a daily occurrence, and the need for information security grows along with
the sophistication of such attacks. Organizations must understand the environment in which information
systems operate so that their information security programs can address actual and potential problems. This
chapter describes this environment and identifies the threats it poses to organizations and their information.

MODULE LEARNING OBJECTIVES

At the end of this learning activity, you should be able to:

1. Understand the need for information security.

2. Understand a successful information security program is the responsibility of an organization’s general
management and IT management.
3. Understand the threats posed to information security and the more common attacks associated with
those threats.
4. Differentiate threats to information systems from attacks against information systems.

LEARNING CONTENTS | Business Needs First, Technology Needs Last

As discussed in the previous chapter, in terms of information security, an asset is any data, device, or other
component of the environment that supports information-related activities. Put simply, an asset is anything of
value to an organization that is related to information services.

Again, you have to remember that what is of value differs from organization to organization. It is your job as an
information security professional to identify, through the people in your organization, what is of value in your
organization.

To review, these are the different asset types of an organization: People, Equipment, Environment, Software,
Data, Organization, and Third Parties. As an information security professional, protection of these assets are
your utmost priority. You are to ensure that these information assets remain safe and useful. This is because
the threats on information assets are ever-present and becomes more sophisticated every day.

But, what about threats? Threats on information assets are ever-present and becomes more sophisticated every
day. Therefore, information security performs four important functions to an organization:

1. Protecting the organization’s ability to function.

2. Protecting the data and information the organization collects and uses, whether physical or electronic.
3. Enabling the safe operation of application running on the organization’s IT systems.
4. Safeguarding the organization’s technology assets.

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Protecting the Ability to Function

◼ Management is responsible
◼ Information security is
 a management issue
 a people issue
◼ Communities of interest must argue for information security in terms of impact and cost

Enabling Safe Operation

◼ Organizations must create integrated, efficient, and capable applications

◼ Organization need environments that safeguard applications
◼ Management must not abdicate to the IT department its responsibility to make choices and enforce
decisions

Protecting Data

◼ One of the most valuable assets is data

◼ Without data, an organization loses its record of transactions and/or its ability to deliver value to its
customers
◼ An effective information security program is essential to the protection of the integrity and value of the
organization’s data

There are three communities of interest and each are responsible for facilitating the information security
program that protects the organization’s ability to function:
1. General Management
2. IT Management
3. Information Security Management

Think of this communities as theoretical units in the organization that is in-charge of putting up and keeping the
organization’s information security program. Their primary objective is the protection of data. This is because
without data, an organization loses its record of transactions and its ability to deliver value to customers. Any
business, educational institution, or government agency that operates within the modern context of connected
and responsive services relies heavily on information systems. Even when transactions are not online,
information systems and the data they process enable the creation and movement of goods and services.

Today’s organizations are under immense pressure to acquire and operate integrated, efficient, and capable
applications. A modern organization needs to create an environment that safeguards these applications,
particularly those that are important elements of the organization’s infrastructure—operating system platforms,
certain operational applications, electronic mail (e-mail), and instant messaging (IM) applications, like text
messaging (short message service, or SMS). Organizations acquire these elements from a service provider or
they implement their own.

In safeguarding technology assets, you need to remember:

• To perform effectively, organizations must employ secure infrastructure hardware appropriate to the
size and scope of the enterprise.
• In general, as an organization grows to accommodate changing needs, more robust technology
solutions should replace technologies the organization has outgrown.
• Information technology continues to add new capabilities and methods that allow organization to solve
business information management challenges.

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LEARNING CONTENTS | THREATS

◼ Management must be informed of the various kinds of threats facing the organization
◼ A threat is an object, person, or other entity that represents a constant danger to an asset
◼ By examining each threat category in turn, management effectively protects its information through
policy, education and training, and technology controls

Threats to Information Security

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Acts of Human Error or Failure

◼ Includes acts done without malicious intent

◼ Caused by:
 Inexperience
 Improper training
 Incorrect assumptions
 Other circumstances
◼ Employees are greatest threats to information security – They are closest to the organizational data
◼ Employee mistakes can easily lead to the following:
 revelation of classified data
 entry of erroneous data
 accidental deletion or modification of data
 storage of data in unprotected areas
 failure to protect information
◼ Many of these threats can be prevented with controls

Deviations in Quality of Service by Service Providers

◼ Situations of product or services not delivered as expected

◼ Information system depends on many inter-dependent support systems
◼ Three sets of service issues that dramatically affect the availability of information and systems are
 Internet service
 Communications
 Power irregularities

Espionage/Trespass

◼ Broad category of activities that breach confidentiality

 Unauthorized accessing of information
 Competitive intelligence vs. espionage
 Shoulder surfing can occur any place a person is accessing confidential information
◼ Controls implemented to mark the boundaries of an organization’s virtual territory giving notice to
trespassers that they are encroaching on the organization’s cyberspace
◼ Hackers uses skill, guile, or fraud to steal the property of someone else
◼ Generally two skill levels among hackers:
 Expert hacker
◼ develops software scripts and codes exploits
◼ usually a master of many skills
◼ will often create attack software and share with others
 Script kiddies
◼ hackers of limited skill
◼ use expert-written software to exploit a system
◼ do not usually fully understand the systems they hack
◼ Other terms for system rule breakers:
 Cracker - an individual who “cracks” or removes protection designed to prevent unauthorized
duplication
 Phreaker - hacks the public telephone network

Information Extortion

◼ Information extortion is an attacker or formerly trusted insider stealing information from a computer
system and demanding compensation for its return or non-use
◼ Extortion found in credit card number theft

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Sabotage or Vandalism

◼ Individual or group who want to deliberately sabotage the operations of a computer system or business,
or perform acts of vandalism to either destroy an asset or damage the image of the organization
◼ These threats can range from petty vandalism to organized sabotage
◼ Organizations rely on image so Web defacing can lead to dropping consumer confidence and sales
◼ Rising threat of hacktivist or cyber-activist operations – the most extreme version is cyber-terrorism

Deliberate Acts of Theft

◼ Illegal taking of another’s property - physical, electronic, or intellectual

◼ The value of information suffers when it is copied and taken away without the owner’s knowledge
◼ Physical theft can be controlled - a wide variety of measures used from locked doors to guards or alarm
systems
◼ Electronic theft is a more complex problem to manage and control - organizations may not even know
it has occurred

Deliberate Software Attacks

Trojan
Horse

M
R
O
W Virus

Bomb

◼ When an individual or group designs software to attack systems, they create malicious code/software
called malware
 Designed to damage, destroy, or deny service to the target systems
◼ Includes:
 macro virus
 boot virus
 worms
 Trojan horses
 logic bombs
 back door or trap door
 denial-of-service attacks
 polymorphic
 hoaxes
◼ Virus is a computer program that attaches itself to an executable file or application.
◼ It can replicate itself, usually through an executable program attached to an e-mail.
◼ The keyword is “attaches”. A virus cannot stand on its own.
◼ You must prevent viruses from being installed on computers in your organizations.
◼ There is no foolproof method of preventing them from attaching themselves to your computer
◼ Antivirus software compares virus signature files against the programming code of know viruses.
◼ Regularly update virus signature files is crucial.
◼ A worm is a computer program that replicates and propagates itself without having to attach itself to a
host.
◼ Most infamous worms are Code Red and Nimda.

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◼ Cost businesses millions of dollars in damage as a result of lost productivity

◼ Computer downtime and the time spent recovering lost data, reinstalling programming, operating
systems, and hiring or contracting IT personnel.
◼ Trojan Programs disguise themselves as useful computer programs or applications and can install a
backdoor or rootkit on a computer.
◼ Backdoors or rootkits are computer programs that give attackers a means of regaining access to the
attacked computer later.
◼ Challenges:
 Trojan programs that use common ports, such as TCP 80, or UPD 53, are more difficult to
detect.
 Many software firewalls can recognize port-scanning program or information leaving a
questionable port.
 However, they prompt user to allow or disallow, and users are not aware.
 Educate your network users.
 Many Trajan programs use standard ports to conduct their exploits.

Compromises to Intellectual Property

◼ Intellectual property is “the ownership of ideas and control over the tangible or virtual representation of
those ideas”
◼ Many organizations are in business to create intellectual property
 trade secrets
 copyrights
 trademarks
 patents
◼ Most common IP breaches involve software piracy
◼ Watchdog organizations investigate:
 Software & Information Industry Association (SIIA)
 Business Software Alliance (BSA)
◼ Enforcement of copyright has been attempted with technical security mechanisms

Forces of Nature

◼ Forces of nature, force majeure, or acts of God are dangerous because they are unexpected and can
occur with very little warning
◼ Can disrupt not only the lives of individuals, but also the storage, transmission, and use of information
◼ Include fire, flood, earthquake, and lightning as well as volcanic eruption and insect infestation
◼ Since it is not possible to avoid many of these threats, management must implement controls to limit
damage and also prepare contingency plans for continued operations

Technical Hardware Failures or Errors

◼ Technical hardware failures or errors occur when a manufacturer distributes to users equipment
containing flaws
◼ These defects can cause the system to perform outside of expected parameters, resulting in unreliable
service or lack of availability
◼ Some errors are terminal, in that they result in the unrecoverable loss of the equipment
◼ Some errors are intermittent, in that they only periodically manifest themselves, resulting in faults that
are not easily repeated
◼ This category of threats comes from purchasing software with unrevealed faults
◼ Large quantities of computer code are written, debugged, published, and sold only to determine that
not all bugs were resolved
◼ Sometimes, unique combinations of certain software and hardware reveal new bugs
◼ Sometimes, these items aren’t errors, but are purposeful shortcuts left by programmers for honest or
dishonest reasons

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Technological Obsolescence

◼ When the infrastructure becomes antiquated or outdated, it leads to unreliable and untrustworthy
systems
◼ Management must recognize that when technology becomes outdated, there is a risk of loss of data
integrity to threats and attacks
◼ Ideally, proper planning by management should prevent the risks from technology obsolesce, but when
obsolescence is identified, management must take action

LEARNING CONTENTS | ATTACKS

◼ An attack is the deliberate act that exploits vulnerability

◼ It is accomplished by a threat-agent to damage or steal an organization’s information or physical asset
 An exploit is a technique to compromise a system
 A vulnerability is an identified weakness of a controlled system whose controls are not present
or are no longer effective
 An attack is then the use of an exploit to achieve the compromise of a controlled system

Malicious Code

◼ This kind of attack includes the execution of viruses, worms, Trojan horses, and active web scripts with
the intent to destroy or steal information
◼ The state of the art in attacking systems in 2002 is the multi-vector worm using up to six attack vectors
to exploit a variety of vulnerabilities in commonly found information system devices

Attack Descriptions

◼ IP Scan and Attack – Compromised system scans random or local range of IP addresses and targets
any of several vulnerabilities known to hackers or left over from previous exploits
◼ Web Browsing - If the infected system has write access to any Web pages, it makes all Web content
files infectious, so that users who browse to those pages become infected
◼ Virus - Each infected machine infects certain common executable or script files on all computers to
which it can write with virus code that can cause infection
◼ Unprotected Shares - using file shares to copy viral component to all reachable locations
◼ Mass Mail - sending e-mail infections to addresses found in address book
◼ Simple Network Management Protocol - SNMP vulnerabilities used to compromise and infect
◼ Hoaxes - A more devious approach to attacking computer systems is the transmission of a virus hoax,
with a real virus attached
◼ Back Doors - Using a known or previously unknown and newly discovered access mechanism, an
attacker can gain access to a system or network resource
◼ Password Crack - Attempting to reverse calculate a password
◼ Brute Force - The application of computing and network resources to try every possible combination
of options of a password
◼ Dictionary - The dictionary password attack narrows the field by selecting specific accounts to attack
and uses a list of commonly used passwords (the dictionary) to guide guesses
◼ Denial-of-service (DoS) –
◼ attacker sends a large number of connection or information requests to a target
◼ so many requests are made that the target system cannot handle them successfully along with
other, legitimate requests for service
◼ may result in a system crash, or merely an inability to perform ordinary functions
◼ Distributed Denial-of-service (DDoS) - an attack in which a coordinated stream of requests is
launched against a target from many locations at the same time

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◼ Spoofing - technique used to gain unauthorized access whereby the intruder sends messages to a
computer with an IP address indicating that the message is coming from a trusted host
◼ Man-in-the-Middle - an attacker sniffs packets from the network, modifies them, and inserts them back
into the network
◼ Spam - unsolicited commercial e-mail - while many consider spam a nuisance rather than an attack, it
is emerging as a vector for some attacks
◼ Mail-bombing - another form of e-mail attack that is also a DoS, in which an attacker routes large
quantities of e-mail to the target
◼ Sniffers - a program and/or device that can monitor data traveling over a network. Sniffers can be used
both for legitimate network management functions and for stealing information from a network
◼ Social Engineering - within the context of information security, the process of using social skills to
convince people to reveal access credentials or other valuable information to the attacker
◼ Buffer Overflow –
◼ application error occurs when more data is sent to a buffer than it can handle
◼ when the buffer overflows, the attacker can make the target system execute instructions, or the
attacker can take advantage of some other unintended consequence of the failure
◼ Usually the attacker fill the overflow buffer with executable program code to elevate the
attacker’s permission to that of an administrator.
◼ Ping of Death Attacks --
◼ A type of DoS attack
◼ Attacker creates an ICMP packet that is larger than the maximum allowed 65,535 bytes.
◼ The large packet is fragmented into smaller packets and reassembled at its destination.
◼ Destination user cannot handle the reassembled oversized packet, thereby causing the system
to crash or freeze.
◼ Timing Attack –
◼ relatively new
◼ works by exploring the contents of a web browser’s cache
◼ can allow collection of information on access to password-protected sites
◼ another attack by the same name involves attempting to intercept cryptographic elements to
determine keys and encryption algorithms

LEARNING CONTENTS | IMPACT OF BUSINESS MODELS TO SECURITY

In order for you, as an information security professional, to understand the organization’s security needs, you
must first understand the organization’s business model. If you would browse about business models in the
Internet, you will find that there are a number of business models out there, each unique and with its own
inherent pros and cons. The table below shows the most common business models.

Table I. Types of Business Models (acquired from https://www.dummies.com/education/college/examples-of-business-models/)

Type of Model Description Example companies and

products
Razor and blades Consumer purchases a low- Gillette, Hewlett-Packard printers,
margin item like a razor handle or Kuerig coffee makers
inkjet printer. Sale of necessary
consumables such as
replacement blades or inks are
sold at a very high markup.
Inverted razor and blades Initial purchase has a high Kodak inkjet printers, Apple iPod
margin, but consumables are sold & iTunes combination. Apple
at a low margin to entice initial makes very low margins on
purchase or contrast to razor and iTunes but high margins on
blade competitor. hardware.
Bricks and clicks Extension of in-store shopping to BestBuy.com, local mystery
include online ordering with in- bookstore with online shop
store pickup or items found
exclusively online.
Multilevel marketing Leverage friends, family, and Avon, Mary Kay, Amway
other personal networks to

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recommend products and act as a

sales force. Works best for
products needing
recommendation to facilitate
purchase.
Franchise Sell the right to use the business McDonald’s, Holiday Inn, NFL
model in exchange for a
percentage of revenues.
Anticipated upsell High percentage of buyers Homebuilders, car dealerships,
ultimately purchase more than steel fabricators.
they expected. For instance, most
new home buyers end up
spending 1.2 times the base price
of home after extras. Builders bet
on this upsell.
Loss leader This model offers velocity items Gas stations, $1 menus
for a very low margin in
anticipation of additional sales at
a higher margin.
Subscription model One of the most popular models Health clubs, software as a
because of recurring revenue. service
Typically involves creating a
significant asset and renting a
piece of it.
Collective Similar to franchise. Involves Ace Hardware, CarQuest
many business coming together
for purchasing, marketing, or
operational purposes but with
looser ties than a franchise.
Typically, collective aggregate
buying power and don’t pay
ongoing royalties like a franchise.
Production of services Standardizing predetermined A consultant charges $5,000 for a
bundle of services typically business plan analysis rather than
bought together and selling for a charging $200 per hour, prepaid
fixed price similar to a product. legal plans
Many times it includes an element
of flat-fee pricing as well.
Servitization of products Making a product part of a larger Rolls-Royce sells aircraft engines,
service offering. not as distinct components but as
complete solutions based on
aviation miles. All operations and
maintenance functions are
included in this “Power by the
Hour” plan.
Long tail Based on Chris Anderson’s YouTube bands, left-handed
famed 2004 Wired magazine online store, micro-breweries
article. Selecting a tiny niche and
serving it in ways mass marketers
can’t. hopefully, the tiny niche
grows into a much larger one, as
it did in the case of Fat Tire beer.
Direct sales Bypass the traditional sales Kirby Vacuum, Girl Scout cookies,
channel to target end users. outlet mall stores
Methods include door-to-door
sales and company-owned
stores.
Cut out the middle man Removal of intermediaries in a Dell Computer, farmer’s markets
supply chain. AutoZone bypasses
traditional three-step distribution

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by skipping the warehouse

distributor
Freemium business model Product is offered for free. Angry Birds, shareware software,
Typically 8% of users upgrade to McAfee security
become paying customers of
virtual goods or to get expanded
access.
Online auctions Create a community of buyers eBay, Arriba
and sellers by using an auction-
type selling process versus a set
sales price.
Hotel California model Create a must-have product that Amusement parks, sporting
traps customers into buying events, movie theaters
unrelated high-profit items like
concessions at a baseball game.
Network effect Create a product in which the Fax machines, social networks
value to each user becomes
higher as more people use it.
Crowdsourcing Leveraging users to co-create Cafepress.com, Frito lay new
products and sell to other users flavors, YouTube, Angie’s List
Users as experts Give users access to technology Cook-your-own steak restaurants,
and tools typically reserved for Lego
company employees. Users then
create their own designs or
versions of the product.
Premium Offer high-end products that Tiffany, Rolls-Royce
appeal to brand-conscious
consumers.
Nickel and dime Price the most cost-sensitive item Airlines
as low as possible and then
charge extra for every little extra.
Flat fee The opposite of nickel and dime. Sandals Resorts, Southwest
Most or all incidental purchases Airlines
are bundled into one fee.

LEARNING CONTENTS | SECURITY POLICY AND SUPPORTING STANDARDS, GUIDELINES, AND PROCEDURES

The purpose of an information security policy is to protect the organization’s information assets, regardless
whether it is in physical or electronic form. The International Standard: ISO 27001 Code of practice defined
Information Security as the preservation of three aspects of Information: confidentiality, integrity, and
availability. Remember that in Module 1 these are itemized as the three basic information security concepts.

As a review, the concept of confidentiality refers to the prevention of unauthorized disclosure of information;
and, the concept of integrity refers to the assurance that data cannot be modified in an unauthorized manner,
that is, the information is trustworthy and accurate; and, lastly, the concept of availability refers to the readiness
of the availability of information for the authorized users. It guarantees reliable access to the information.

An information security policy helps protect the organization’s information assets by optimizing the management
of risks and minimizing the impact of information security incidents. Therefore, an information security policy is
the product of an intensive risk assessment on each information asset of the organization.

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LEARNING CONTENTS | SUMMARY

◼ Unlike any other aspect of IT, information security’s primary mission to ensure things stay the way they
are
◼ Information security performs four important functions:
 Protects organization’s ability to function
 Enables safe operation of applications implemented on organization’s IT systems
 Protects data the organization collects and uses
 Safeguards the technology assets in use at the organization
◼ Threat: object, person, or other entity representing a constant danger to an asset
◼ Management effectively protects its information through policy, education, training, and technology
controls
◼ Attack: a deliberate act that exploits vulnerability
◼ Business Models: each of it is unique and with its own inherent pros and cons.

LEARNING ACTIVITY 1

Of all the presented business models above, in terms of information security, which do you think is the hardest
to protect and why? Which do you think is the easiest and why? Limit your answers to four paragraphs and
each paragraph should be limited to less than ten sentences.

REFERENCES

Books

Andress, J. The Basics of Information Security: Understanding the fundamentals of InfoSec in Theory and
Practice. Elsevier Inc.

Principles of Information Security, 6th Edition, Michael E. Whitman; Herbert J. Mattord

Online materials

https://www.dummies.com/education/college/examples-of-business-models/

https://www.researchgate.net/publication/338142467_Information_Security_Policy_for_Ronzag

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