E-Commerce Security and Fraud Prepared by: Dr.Resala AlAdraj What Is EC Security? Computer security • In general refers to the protection of data, networks, computer programs, computer power, and other elements of computerized information systems. •It is a very broad field due to the many methods of attack as well as the many modes of defense. •The attacks on and defenses for computers can affect individuals, organizations, countries, or the entire Web. Computer security aims to prevent, or at least minimize, the attacks. Cont.. We classify computer security into two categories: • generic topics, relating to any information system (e.g., encryption), and • EC-related issues , such as buyers’ protection. Attacks on EC websites, identify theft of both individuals and organizations, and a large variety of fraud schemes, such as phishing, are described in this chapter. Basic E-commerce Security Issues And Landscap • The Threats, Attacks, and Attackers Information systems, including EC, are vulnerable to both unintentional and intentional threats Unintentional Threats Unintentional threats fall into three major categories: human error, environmental hazards ,and malfunctions in the computer system: 1. Human Error •Human errors can occur in the design of the hardware, software, or information systems. •It can also occur in programming (e.g., forgetting to factor in leap year), testing, data collection, data entry, authorization, and instructions. •Errors can occur because of negligence, outdated security procedures or inadequate employee training, or because passwords are not changed or are shared with others. . 2. Environmental Hazards oThese include natural disasters and other environmental conditions outside of human control(e.g., Acts of God, large scale acts of nature and accidents such as earthquakes, severe storms, hurricanes, blizzards, or sand storms), floods, power failures or strong fluctuations, fires (the most common hazard), explosions, radio active fallout, and water-cooling system failures. oComputer resources also can be damaged by side effects such as smoke and water. Damages during wars or property vandalism are a special kind often Environmental hazards 3. Malfunctions in the Computer System •Defects can be the result of poor manufacturing, defective materials, memory leaks, and out dated or poorly maintained networks. •Unintentional malfunctions can also happen for other causes, ranging from lack of user experience to inadequate testing. • For example, in March 2012, a computer glitch (related to United Airlines switching over to the computer system used by Continental Airlines after their merger) over-loaded United Airlines’ phone lines and caused flight delays, causing frustration for customers, and the problem continutes. Intentional attacks are committed by cybercriminals. Types of intentional attacks include theft of data; inappropriate use of data (e.g., changing it or presenting it for fraudulent Intentional Attacks and Crimes purposes); theft of laptops and other devices and equipment and/or computer programs to steal data; vandalism or sabotage directed toward the computer or its information system; damaging computer resources; losses from malware attacks; creating and distributing viruses; and causing monetary losses due to Internet fraud. Cont… • The Criminals and Methods Intentional crimes carried out using computers and the Internet are called cybercrimes , which are done by: • cybercriminals (criminals for short) that includes hackers and crackers Cont.. • Hackers and crackers. A hacker describes someone who gains unauthorized access to a computer system. A cracker , (also known as a“black hat” hacker ), is a malicious hacker with extensive computer experience who may be more damaging. •Any part of an information system can be attacked. • PCs, tablets, smartphones easily be stolen The Targets oforthe Attacks incan Vulnerable Areasor attacked by viruses and/or malware. •Users can become victims of a variety of fraudulent actions. Databases can be attacked by unauthorized intruders, and data are very vulnerable in many places in a computerized system. •Vulnerability creates opportunities for attackers to damage information systems. EC Security Requirements 1-Authentication. Authentication is a process used to verify (assure) the real identity of an EC entity, which could be an individual, software agent, computer program, or EC website. Cont… 2-Authorization is the provision of permission to an authenticated person to access systems and perform certain operations in those specific systems. 3-Auditing. When a person or program accesses a website or queries a database, various pieces of information are recorded or logged into a file. Cont.. 4- Availability. Assuring that systems and information are available to the user when needed and that the site continues to function. Appropriate hardware, soft-ware, and procedures ensure availability. 5-Nonrepudiation Closely associated with authentication which is the assurance that online customers or trading partners will not be able to falsely deny (repudiate) their purchase, transaction, sale, or other obligation. Nonrepudiation involves several assurances, including providing proof of delivery from the sender and proof of sender and recipient identities and the identity of the delivery company. EC Defense Programs and Strategy • An EC security strategy consists of multiple layers of defense that includes several methods. • This defense aims to deter, prevent, and detect unauthorized entry into an organization’s computer and information systems Cont… • Deterrent methods are countermeasures that make criminals abandon their idea of attacking a specific system (e.g., a possible deterrent is a realistic expectation of being caught and punished) Security defense methods 1-Prevention measures Help stop unauthorized people from accessing the EC system (e.g., by using authentication devices and firewalls or by using: a. Intrusion prevention: which is, according to TechTarget “a preemptive approach to network security used to identify potential threats and respond to them swiftly”). Cont.. b. Detection measures •Help find security breaches in computer systems. •Usually this means to find out whether intruders are attempting (or have attempted) to break into the EC sys-tem, whether they were successful, whether they are still damaging the system, and what damage they may have done Security defense strategy 1-Information Assurance Making sure that a customer is safe and secure while shopping online is a crucial part of improving the online buyer’s experience. Information assurance is measures taken to protect information systems and their processes against all risks. In other words assure the systems’ availability when needed. The assurance includes all tools and defense methods Cont… 2-Possible Punishment •A part of the defense is to deter criminals by punishing them heavily if they are caught. • Judges now are giving more and harsher punishments than a decade ago. Defense Methods and Technologies 3- Recovery is especially critical in cases of a disaster or a major attack, and it must be speedy. •Organizations need to continue their business until the information systems are fully restored, and they need to restore them fast. •This is accomplished by activating business continuity and disaster recovery plans. E-commerce Security Strategy Reference Turban, E., King, D., Lee, J.K., Liang, T.-P., Turban, D.C (2015). Electronic Commerce: A Managerial Perspective. 8th edition. Springer International Publishing: Switzerland.
