E Commerce 10
E Commerce 10
Lecture 8
JIT
E-Security
Just-In-Time Manufacturing:
A Definition
Just-In-Time Manufacturing:
A Definition
• Uses a systems approach to develop and operate a
manufacturing system
• Organizes the production process so that parts are
available when they are needed
• A method for optimizing processes that involves
continual reduction of waste
E-Security
Information System Security
As shown in Figure 5.2, the data sent from the source ought to reach in
destination without any tampering as shown in Figure 5.2(a). But the above
criteria shown in Figure 5.2(a) may be violated by the following:
•Intercept the data with the intent of spying on it as shown in Figure 5.2(c).
•Interrupt the data and modify it and send a different data to the receiver as
shows in Figure 5.2(d).
•Obstruct the data and fabricate new data and send it to the receiver as shown
in Figure 5.2(e).
Encryption
Physical Controls
Many Internet users perceive that there is a large risk to their privacy and
security when they buy products and services or submit personal information online.
Although the perception of risk may be greater than the actual risk, it is still a
cause for concern. An e-business must address customers' perceived shown risks just as
much as any actual risks.
An e-business cannot expect to achieve perfect security for its network
and website. own in The important issue for an e-business is to have adequate
security to protect its assets, revenue stream, customer privacy, and its own
reputation.
Network administrators have increasing concerns about the security of their networks
when they expose their organization's private data and networking infrastructure to Internet
crackers.
The fundamental problem may be that the Internet was not designed to be very
secure, i.e. open access 1for the purposes of research was the prime consideration at
the time the Internet was implemented.
•Lack of policy. Many sites are configured unintentionally for wide-open Internet
access, without regard for the potential for abuse from the Internet; many sites permit
more TCP/IP services than they require for their operations, and do not attempt to limit
access to information about their computers that could prove valuable to intruders.
Today, hacker is a slang term used to refer to someone who deliberately gains
unauthorized access to individual computers or computer networks.
Ethical hackers use their skills to find weaknesses in computer systems and make them
known, without regard for personal gain.
An e-business must protect itself against unauthorized access to its computer network,
denial-of-service traffic overloads, and the intrusion of destructive viruses.
Denial-of-Service Attacks
While a DoS attack does not do any technical damage, it can do substantial financial
damage to an e-business, because every second an e-business's network or a website is down,
it may result in lost revenues.
The attacker first breaks into hundreds or thousands of random, insecure computers on
the Internet and installs an attack program.
Then he coordinates them all to attack the target simultaneously. Thereafter, the target is
attacked from many places at once; the traditional defences just do not work, and the system
crashes.
Viruses
Viruses are the most common security risk faced by e-businesses today. A virus is a small
program that inserts itself into other program files that then become "infected", just as a
virus in nature embeds itself in normal human cells.
The virus is spread when an infected program is executed, and this further infects other
programs. Examples of virus effects include inability to boot, deletion of files or entire hard
drives, inability to create or save files, and thousands of other possibilities.
A logic bomb is a virus whose attack is triggered by some event such as the date on
a computer's system clock. A logic bomb may simply release a virus or it may be a
virus itself. Viruses are generally introduced into a computer system via e-mail or by
unauthorized network access.
Trojan horse
Worm.
This is a special type of virus that does not directly alter program files.
Instead, a worm replaces a document or an application with its own code
and then uses that code to position itself.
Worms are often not noticed until their uncontrolled replication consumes
system resources and slows down or stops the system
How Vulnerable Are The Internet Sites?
The Internet, while being a useful and a vital network, is at the same time
vulnerable to attacks. Sites that are connected to the Internet face significant risk in
some form by intruders. The following factors would influence the level of risk:
The more the number of systems that are connected, obviously the harder it is
to control their security.
At the same time, though, how well prepared a site is, and the degree to which
the site relies on the Internet, can increase, or decrease the risk.
Website Defacement
It is a major risk and a big dollar issue that most companies are reluctant
to discuss openlyelectronic industrial espionage.
Often, e-businesses that have been hacked and had business secrets
stolen are too embarrassed to admit the break-in.
Credit Card Fraud and Theft of Customer Data
A hacker can break into a database server and steal thousands of credit
card numbers and other information in a matter of moments, and an e-
business might not even recognize that the hacker was there.
Security and E-mail
E-mail is typically encrypted for the reason that all network correspondence is
open for eavesdropping.
Privacy Enhanced Mail Standard
PEM is the Internet Privacy Enhanced Mail standard, designed, proposed, but
not yet officially adopted by the Internet Activities Board, to provide secure
electronic mail over the Internet.
The system supports multiple cryptographic tools: for each mail message, the
specific encryption algorithm, digital signature algorithm, hash function and so
on, are specified in the header.
PEM also provides support for non-repudiation, which allows the third-party
recipient of a forwarded message to verify the identity of the message originator
(not just the message forwarder) and to verify whether any of the original text has
been altered.
Pretty Good Privacy (PGP)
The process is so simple that anyone with a PC can do it with almost no effort.
For authentication, PGP employs the RSA public-key encryption scheme and the
MD5 (Message Digest version 5) developed by Rivest, a one-way hash function
to form a digital signature that assures the receiver that an incoming message is
authentic (that it comes from the alleged sender and that it has not been altered).
Network and Website Security
Passwords are only effective when used properly. Often a computer user
chooses a bad password, such as a short, common word-a name, or birthday-so that
the user can remember the password easily.
An intrusion detection system can defend a website against DoS attacks
by adding more servers to increase the traffic the website can handle, by
using filters and routers to manage traffic, and by having a backup plan to
reroute legitimate traffic during an attack.
•Using a predefined key to encrypt and decrypt the data during transmission;
•Using the Secure Sockets Layer (SSL) protocol to protect data transmitted over
the Internet. SSL provides encryption of data between the browser on the
customer's computer and the software on the Web server, allowing data such as
credit cardinformation to be transmitted securely. SSL uses digital certificates so
that a Web browser can authenticate the server it is connected to, making sure that
credit card data is going to the appropriate server;
•Removing all files and data from storage devices, including disk drives and
tapes, before getting rid of the devices; and
An e-business should manage its e-business risks as a business issue, not just as a
technology issue. An e-business must consider the direct financial impact of immediate
loss of revenue, compensatory payments, and future revenue loss from e-business risks
such as:
An e-business should put in place an effective risk management program that
includes the following:
The firewall determines which inside services may be accessed from the outside,
which outsiders are permitted access to the permitted inside services, and which
outside services may be accessed by insiders.
For a firewall to be effective, all traffic to and from the Internet must pass
through the firewall, where it can be inspected.
The firewall must permit only authorized traffic to pass, and the firewall itself must
be immune to penetration. Unfortunately, a firewall system cannot offer any protection
once an attacker has got through or around the firewall.
It is important to note that an Internet firewall is not just a router, a bastion host,
or a combination of devices that provides security for a network.
The firewall is part of an overall security policy that creates a perimeter defense
designed to protect the information resources of the organization.
This security policy must include published security guidelines to inform
users of their responsibilities; corporate policies defining network access,
service access, local and remote user authentication, dial-in and dial-out,
disk and data encryption, and virus protection measures and employee
training.
All potential points of network attack must be protected with the same
level of network security. Setting up an Internet firewall without a
comprehensive security policy is like placing a steel door on a tent.
A firewall can greatly improve network security and reduce risks to hosts on
the subnet by filtering inherently insecure services.
As a result, the subnet network environment is exposed to fewer risks, since
only selected protocols will be able to pass through the firewall.
This provides the benefit of preventing the services from being exploited by
outside attackers, but at the same time permits the use of these services with
greatly reduced risk of exploitation.
A firewall also provides the ability to control access to site systems. For
example, some hosts can be made reachable from outside networks,
whereas others can be effectively sealed off from unwanted access.
A site could prevent outside access to its hosts except for special cases
such as mail servers or information servers.
This brings to the fore an access policy that firewalls are particularly
adept at enforcing: do not provide access to hosts or services that do not
require access. If, for example, a user requires little or no network' access
to her desktop workstation, then a firewall can enforce this policy.
Concentrated Security
A firewall can actually be less expensive for an organization in that all or most
modified software and additional security software could be located on the firewall
systems as opposed to being distributed on many hosts.
Enhanced Privacy
Using a firewall, some sites wish to block services such as finger and Domain
Name Service. Finger displays information about users, such as their last login time,
whether they have read mail, and other items.
But, finger could leak information to attackers about how often a system is
used, whether the system has active users connected, and whether the system
could be attacked without drawing attention.
Firewalls can also be used to block DNS information about site systems;
thus, the names and IP addresses of site systems would not be available to
Internet hosts.
Some sites feel that by blocking this information, they are hiding
information that would otherwise be useful to attackers.
Lastly, but perhaps most importantly, a firewall provides the means for
implementing and enforcing a network access policy. In effect, a firewall
provides access control to users and services.
A site may be able to depend on its own users for their cooperation.
However, it cannot or it should not depend on the Internet users in general.
Firewall Components
Network policy
Advanced authentication mechanisms
Packet filtering
Application gateways.
The following sections describe each of these components in detail.
Firewall design policy.
The firewall design policy is specific to the firewall. It defines the rules used to
implement the service access policy.
One cannot design this policy in a vacuum isolated from understanding issues
such as firewall capabilities and limitations, and threats and vulnerabilities
associated with TCP/IP. Firewalls generally implement one of the following two
basic design policies:
A firewall that implements the first policy allows all services to pass into the site
by default, with the exception of those services that the service access policy has
identified as disallowed.
A firewall that implements the second policy denies all services by default,
but passes those services 'that have been identified as allowed.
This second policy follows the classic access model used in all areas of
information security.
TABLE 5.3
E-RISK INSURANCE
Extortion and Reward Responds to Internet extortion demands and/or pays rewards to
help capture saboteurs.
Unauthorized Access/ Covers failure to protect against third-party access to data and
transactions.
Unauthorized Use
Security
Computer Server and Services Errors & Protects e-businesses against liability for errors and omissions
Omissions when their professional advice causes a client's financial loss.
Advanced Authentication
Security lapses on the identity of Internet users have occurred in part due to
the weaknesses associated with traditional passwords. For years, users have
been advised to choose passwords that would be difficult to guess, or not to
reveal their passwords.
However, even if users follow this advice (and, many do not), the fact that
intruders can and do monitor the Internet
for passwords that are transmitted in the clear has rendered traditional
passwords obsolete.
While the authentication techniques vary, they are indeed similar in one
aspect. The passwords generated by advanced authentication devices cannot
be reused by an attacker who has monitored a connection.
Since firewalls can centralize and control site access, the firewall is the
logical place for the advanced authentication software or hardware to be
located.
The figure also shows a site with a firewall using advanced authentication,
such that Telnet or FTP sessions originating from the Internet to site systems
must pass the advanced authentication before being permitted to the site
systems.
The site systems may still require static passwords before permitting
access. However, these passwords would be protected against exploitation,
even if the passwords are monitored, as long as the advanced authentication
measures and other firewall components prevent intruders from penetrating or
bypassing the firewall.
Packet Filtering
IP packet filtering is done, usually, using a packet filtering router designed
for filtering packets, as they pass between the router's interfaces. A packet
filtering router usually can filter IP packets based on some or all of the
following fields:
•Source IP address
•Destination IP address
•TCP/UDP source port
•TCP/UDP destination port.
Not -all packet filtering routers currently filter the source TCP/UDP port, though
vendors have now started incorporating this capability. Some routers examine
the router's network interfaces in which a packet arrives, and then use this as an
additional filtering criterion.
Some UNIX hosts provide packet filtering capability, although most do not.
Filtering can be used in a variety of ways to block connections from or to specific
hosts or networks, and to block connections to specific ports.
A site might wish to block connections from certain addresses, such as from
hosts or sites that it considers to be hostile or untrustworthy. Alternatively, a site
may wish to block connections from all addresses external to the site (with
certain exceptions, such as SMTP for receiving e-mail) (see Figure 5.4).
Application Gateways
To counter some of the weaknesses associated with packet filtering routers,
firewalls need to use software applications to forward and filter connections for
services such as Telnet and FTP.
Such an application is referred to as a proxy service, while the host running the
proxy service is referred to as an application gateway.
Application gateways and packet filtering routers can be combined to provide higher
levels of security and flexibility than if either were used alone.
As an example of packet filtering, consider a policy to allow only certain
connections to a network of address 123.4.*.*.
Telnet connections will be allowed to only one host, 123.4.5.6, which may be the
site's Telnet application gateway, and SMTP connections will be allowed to two
hosts, 123.4.5.7. and '123.4.5.8, which may be the site's two electronic mail
gateways.
NNTP (Network News Transfer Protocol) is allowed only from the site's NNTP
feed system, 129.6.48.254, and only to the site's NNTP server, 123.4.5.9, and NTP
(Network Time Protocol) is allowed to all hosts. All other services and packets are to
be blocked. An example of the rule-set is in Table 5.4.
TABLE 5.4
PACKET FILTERING TABLE
* * * * * deny
The first rule allows TCP packets from any source address and port greater
than 1023 on the Internet to the destination address of 123.4.5.6 and port of 23
at the site.
Port 23 is the port associated with the Telnet server, and all Telnet clients
should have unprivileged source ports of 1024 or higher. The second and third
rules work in a similar fashion, except packets to destination addresses 123.4.5.7
and 123.4.5.8, and port 25 for SMTP, are permitted.
The fourth rule permits packets to the site's NNTP server, but only from
source address 129.6.48.254 to destination address 123.4.5.9 and port 119
(129.6.48.254 is the only NNTP server that the site should receive news from,
thus access to the site for NNTP is restricted to only that system).
The fifth rule permits NTP traffic, which uses UDP as opposed to TCP, from
any source to any destination address at the site.
Finally, the sixth rule denies all other packets-if this rule is not present, the
router may or may not deny all subsequent packets. This is a very basic example
of packet filtering. Actual rules permit more complex filtering and greater
flexibility.
While some of these services such as Telnet or FTP are inherently
risky, blocking access to these services completely may be too drastic a step
for many sites.
Not all systems generally require access to all services. For example,
restricting Telnet or FTP access from the Internet to only those systems that
require the access can improve the security of users at no cost.
Services such as NNTP may seem to pose little threat, but restricting
these services to only those systems that need them helps to create a
cleaner network environment and reduces the likelihood of exploitation from
yet-to-be-discovered vulnerabilities and threats.