Security Issues, E-Commerce Threats: Part-1
Security Issues, E-Commerce Threats: Part-1
Security Issues, E-Commerce Threats: Part-1
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change Charles Darwin
If youre not changing faster than your environment, you are falling behind Jack Welsh, CEO of GE
Security in Cyberspace
The electronic system that supports e-commerce is susceptible to abuse and failure in many ways:
Security in Cyberspace
Theft: Theft of confidential, proprietary, technological, or marketing information belonging to the firm or to the customer. An intruder may disclose such information to a third party, resulting in damage to a key customer, a client, or the firm itself. Disruption: Disruption of service resulting in major losses to business or inconvenience to the customer.
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Fraud:
Resulting in direct financial loss. Funds might be transferred from one account to another, or financial records might simply be destroyed.
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Security Issues Security concerns generally include the following issues: Confidentiality:
Knowing who can read data. Ensuring that information in the network remains private. This is done via encryption.
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Security Issues
Ensuring that principal cannot deny that they sent the message.
Privacy
Individual rights to nondisclosure
Integrity:
Making sure that information is not accidental or maliciously altered or corrupted in transit.
Firewalls:
A filter between corporate network and the Internet to secure corporate information and files from intruders but allowing access to authorized principals.
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Access Control:
Restricting the use of resources to authorized principals.
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Malicious code Hacking and cybervandalism Credit card fraud/theft Zombied PC Phishing Denial of service attacks Sniffing Spoofing
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Virus It is a software program which attach it self to other programs without the owner of program being aware of it. when the main program is executed the virus is spread causing damage. Worms designed to spread from computer to computer It can spread without any human intervention. It can propagate through network and can affect hand held devices. Trojan horse It is software that appears to perform a desirable function for the user prior to run or install. Perhaps in addition to the expected function, steals information or harms the system. Electronic Business MS114
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Malicious Code
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Malicious Code
Bad applets (malicious mobile code) malicious Java applets or ActiveX controls that may be downloaded onto client and activated merely by surfing to a Web site
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Credit Card Fraud Fear that credit card information will be stolen deters online purchases Hackers target credit card files and other customer information files on merchant servers; use stolen data to establish credit under false identity One solution: New identity verification mechanisms
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shortened as zombie) is a computer connected to the Internet that has been compromised by a hacker, computer virus or Trojan horse.
Generally, a compromised machine is only one of many in a botnet, and will be used to perform malicious tasks of one sort or another under remote direction. Most owners of zombie computers are unaware that their system is being used in this way. Because the owner tends to be unaware, these computers are metaphorically compared to zombies.
Phishing - is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication.
Phishing is typically carried out by e-mail or instant messaging, and it often directs users to enter details at a fake website whose look and feel are almost identical to the legitimate one. Phishing is an example of social engineering techniques used to fool users, and exploits the poor usability of current web security technologies.
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DoS - A denial-of-service attack (DoS attack) or distributed denial-of-service attack (DDoS attack) is an attempt to make a computer resource unavailable to its intended users.
Although the means to carry out, motives for, and targets of a DoS attack may vary, it generally consists of the concerted efforts of a person or people to prevent an Internet site or service from functioning efficiently or at all, temporarily or indefinitely. Perpetrators of DoS attacks typically target sites or services hosted on high-profile web servers such as banks, credit card payment gateways, and even root name servers. The term is generally used with regards to computer networks, but is not limited to this field, for example, it is also used in reference to CPU resource management. One common method of attack involves saturating the target machine with external communications requests, such that it cannot respond to legitimate traffic, or responds so slowly as to be rendered effectively unavailable.
Spoofing:
Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else
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Internet Security A successful e-commerce environment is built on trust in the integrity of the communication network that links the buyer and the merchants. With open exchange of information on internet, more security is needed to minimize the vulnerability.
Internet Security
Part-2
Internet Security
Measures for security over Internet are: Web Application:
SSL Secure Socket Layer S-HTTP Secure Hypertext Transfer Protocol
SSL- Secure Socket Layer It is a key protocol for secure Web transactions. Secures data packets at the network layer. Originally it was developed by Netscape. Now it is widely used as a standard for encrypting data on the Internet. It is used by all Netscapes browser products and Microsoft Internet Explorer 3.0 or higher versions.
SSL- Secure Socket Layer One requirement for using SSL is that both merchants web server and customers web browser must use the same security system. Advantage of this protocol is that as it is used by all URLs beginning with http, no problem arise in interfacing online.
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S-HTTP Secure Hypertext Transfer Protocol It is compatible with HTTP and can integrate with HTTP applications. It allows client machine and server machine to communicate easily through encrypted data exchange over Internet It supports only symmetric key cryptography and does not require digital certificates or public key. As it operates on application layer, it provides user authentication and is capable of securing only parts of documents.
It provides:
Confidentiality Authenticity Integrity Ensures nonrepudiation
It is more robust that SSL But is not widely popular because of Netscape market penetration.
SET Secure Electronic Transaction It is a specification designed by VISA, MasterCard and Europay. It is used for handling fund transfer from credit card issuer to merchants bank account. It is a well known payment model based on signature.
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SET Secure Electronic Transaction SET requires customer to register their accounts once with the card issuing authority/ bank to provide appropriate digital signature. Two things are needed by the customer:
Digital certificate Digital wallet
Digital Wallet It is an online shopping device that seals personal information in a free plug-in that can be invoked when making a Purchase. This eliminates having to retype credit card information in future transaction. Customer can select payment method and shipping address to accomplish with the purchase.
Steps
You made a purchase. Software has done the certificates exchange. You receive
e-merchants public key, payment processors key and a unique transaction identifier issued by the merchant.
Then create Order Information (OI) and payment Instruction (PI) including the e-merchants assigned transaction identifier. Now execute hashing function to make digest of the OI and PI. you get a dual signature by encrypting with private key (ensures that OI and PI are related together).
Security for e-mail Three main protocol governs the secure communication through e-mail
PGP Pretty Good Privacy S/MIME Multipurpose Internet Mail Extension MSP- Message Security Protocol
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It was developed by RSA in 1996. It was built on public key cryptography standards It provides security for different data types and for e-mail attachments. It has two key attributes: Digital signature Digital envelope
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Signature is created using hashing algorithm which creates digest Digest is encrypted using public key cryptography. The digital signature ensures that nothing has been done to the message during transmission. The digital wallet ensures that message remains private.
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MSP Message Security Protocol It is mainly used by US government. It provides security for e-mails attachments across multiple platforms. It operates at application level. The message is send in encrypted format with the required decryption key to validate the message at the recipients end.
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Encryption
In cryptography, encryption is the process of transforming information (referred to as plaintext) using an algorithm (called cipher) to make it unreadable to anyone except those possessing special knowledge, usually referred to as a key. The result of the process is encrypted information (in cryptography, referred to as ciphertext). Julius Cesar used alphabetical code to communicate with his commanders.
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Trusted connection
Untrusted connection
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Basic Terminologies Keys are rules used in algorithms to convert a document into a secret document Keys are of two types:
Symmetric Asymmetric
A key is symmetric if the same key is used both for encryption and decryption A key is asymmetric if different keys are used for encryption and decryption
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Alice and Bob agree on an encryption method and a shared key. Alice uses the key and the encryption method to encrypt (or encipher) a message and sends it to Bob. Bob uses the same key and the related decryption method to decrypt (or decipher) the message.
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Advantages There are some very fast classical encryption (and decryption) algorithms Since the speed of a method varies with the length of the key, faster algorithms allow one to use longer key values. Larger key values make it harder to guess the key value -- and break the code -- by brute force.
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Disadvantages Requires secure transmission of key value Requires a separate key for each group of people that wishes to exchange encrypted messages (readable by any group member)
For example, to have a separate key for each pair of people, 100 people would need 4950 different keys. [n*(n-1)/2]
Public-Key or Asymmetric Cryptography Alice generates a key value (usually a number or pair of related numbers) which she makes public. Alice uses her public key (and some additional information) to determine a second key (her private key). Alice keeps her private key (and the additional information she used to construct it) secret.
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Bob (or Carol, or anyone else) can use Alices public key to encrypt a message for Alice. Alice can use her private key to decrypt this message. No-one without access to Alices private key (or the information used to construct it) can easily decrypt the message.
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An Example: Internet Commerce Bob wants to use his credit card to buy some brownies from Alice over the Internet. Alice sends her public key to Bob. Bob uses this key to encrypt his credit-card number and sends the encrypted number to Alice. Alice uses her private key to decrypt this message (and get Bobs credit-card number).
Two uses of Asymmetric approach To provide message confidentiality: To prove the authenticity of the message originator.
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Internet Commerce
Bob wants to order brownies from Alice and keep the entire transaction private. Bob sends Alice his public key. Alice generates a session key, encrypts it using Bobs public key, and sends it to Bob. Bob uses the session key (and an agreed-upon symmetric encryption algorithm) to encrypt his order, and sends it to Alice.
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7,000 years 1018 years 70 years 7 years 1016 years 1015 years
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Cryptanalysis
Cryptanalysis (from the Greek krypts, "hidden", and analein, "to loosen" or "to untie") is the study of methods for obtaining the meaning of encrypted information, without access to the secret information that is normally required to do so. Typically, this involves knowing how the system works and finding a secret key. In non-technical language, this is the practice of codebreaking or cracking the code, although these phrases also have a specialized technical meaning.
Essentially, the practical importance of an attack is dependent on the answers to the following four questions:
What knowledge and capabilities does the attacker need? How much additional secret information is deduced? How much computation is required? (What is the computational complexity?) Does the attack break the full cryptosystem, or only a weakened version?
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Algorithmic attacks are in some ways much more difficult to perform because they generally require an extremely high degree of knowledge in mathematics. Rather than going after the entire key space, the code breaker will try and find flaws in the algorithm that causes it to be reduced to a problem of decreased complexity.
An attack where the cryptanalyst may choose the ciphertext to be decrypted. The attacker can obtain the plaintexts corresponding to an arbitrary set of ciphertexts of his own choosing.
A form of cryptanalysis where the cryptanalyst may choose the plaintext to be encrypted. The attacker can obtain the ciphertexts corresponding to an arbitrary set of plaintexts of his own choosing
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In this technique the attacker knows the plaintext for part (s) of the ciphertext. They uses this information to decrypt the rest of the ciphertext.
Dictionary attack
A brute force attack that tries passwords and or keys from a precompiled list of values. This is often done as a precomputation attack.
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Digital Signature
Hash fn digest
A private Key
Digital Certificate
Digital signature
ciphertext
Internet
B private Key
An electronic document issued by a certifying authority to establish a merchants identity. Certificate authority:
A trusted entity that issues and revokes public key certificates and manages key pairs Authorities like verisgn, cybertrust, US Postal Services.
Hash fn
plaintext
ciphertext
A public Key
digest Bob
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digest
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Holders Name Name of certifying authority Public key for cryptographic use The duration of the certificate The class of certificate Certificate ID number.
Class2:
Checks for information like real name, SSN and DOB. They require proof of physical address, locale and e-mail id. Can be compared with a credit card.
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Class4:
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Firewalls
Firewalls
Part-4
It is a software and hardware tool that define, control and limit the access to networks and computers linked to the networks of an organization. Sits between two networks
Used to protect one from the other Places a bottleneck between the networks
All communications must pass through the bottleneck this gives us a single point of control
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Firewall
Incoming Data
Firewall
Technically it is a router or a computer installed between the internal network of an organization and the rest of the internet.
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Classification of Firewall
Classification of Firewall
It is used to filter packets based on the information in Network layer and transport layer header.
Source IP address Destination IP address Source port address Destination port address Type of protocol
Proxy firewall
It is used to filter packets on the basis of information available in the message. One solution is to install a proxy computer also called application gateway.
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Proxy Firewall
Error
Application Gateway
Personal Firewall It is an application which controls network traffic to and from a computer, permitting or denying communication based on a security policy. It protects only the computer on which it is installed
HTTP Server
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Linksys D-Link
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Achieving Privacy
Private Networks
A small organization can use an isolated LAN. People inside the organization can send data to one another that totally remain inside the organization, secure from outsiders. Intra-organization data is exchanged through private internet. Inter-organization data is exchanged through global internet.
Hybrid Networks
It is private but virtual network Private as provides privacy Business Virtual Electronic MS114as it does not use private network.
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Traditional Connectivity
What is VPN?
Virtual Private Network is a type of private network that uses public telecommunication, such as the Internet, instead of leased lines to communicate. Became popular as more employees worked in remote locations. Terminologies to understand how VPNs work.
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Encryption
Encryption -- is a method of scrambling data before transmitting it onto the Internet. Public Key Encryption Technique Digital signature for authentication
Tunneling
A virtual point-to-point connection made through a public network. It transports encapsulated datagrams.
Original Datagram Encrypted Inner Datagram Datagram Header Outer Datagram Data Area
Two types of end points: Remote Access Electronic Business MS114 Site-to-Site
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Types of Implementations
A successful e-commerce environment is built on trust in the integrity of the communication network that links the buyer and the merchants. What does implementation mean in VPNs? 3 types
Intranet Within an organization Extranet Outside an organization Remote Access Employee to Business
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Device Types
What it means 3 types
Hardware Firewall Software
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Advantages: Scalability
Flexibility of growth Efficiency with broadband technology
Disadvantages
VPNs require an in-depth understanding of public network security issues and proper deployment of precautions Availability and performance depends on factors largely outside of their control Immature standards VPNs need to accommodate protocols other than IP and existing internal network technology
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Applications: Site-to-Site VPNs Large-scale encryption between multiple fixed sites such as remote offices and central offices Network traffic is sent over the branch office Internet connection This saves the company hardware and management expenses
Site-to-Site VPNs
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90% 79% Percentages 63% 50% 20% 40% 60% 80% 100%
0%
% of Respondents
*Source: www.cisco.com
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VPNs are continually being enhanced. Example: Equant NV As the VPN market becomes larger, more applications will be created along with more VPN providers and new VPN types. Networks are expected to converge to create an integrated VPN Improved protocols are expected, which will also improve VPNs.
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