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Chapter 10-E-Commerce Security

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0% found this document useful (0 votes)
20 views108 pages

Chapter 10-E-Commerce Security

Chapter 10-E-Commerce Security

Uploaded by

t3990530
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 108

Electronic Commerce

Tenth Edition

Chapter 10
Electronic Commerce Security
Learning Objectives

In this chapter, you will learn:


• What security risks arise in online business and how
to manage them
• How to create a security policy
• How to implement security on Web client computers
• How to implement security in the communication
channels between computers

Electronic Commerce, Tenth Edition 2


Learning Objectives (cont’d.)
• How to implement security on Web server
computers
• What organizations promote computer, network, and
Internet security

Electronic Commerce, Tenth Edition 3


Online Security Issues Overview
• Early Internet days
– Most popular use: electronic mail
• Today’s higher stakes
– Electronic mail, shopping, all types of financial
transactions
• Common worry of Web shoppers
– Stolen credit card as it transmits over the Internet
– More likely to be stolen from computer where stored
• Chapter topic: security in the context of electronic
commerce
Electronic Commerce, Tenth Edition 4
Origins of Security on Interconnected
Computer Systems
• Data security measures taken by Roman Empire
– Coded information to prevent enemies from reading
secret war and defense plans
• Modern electronic security techniques
– Defense Department wartime use
• “Orange Book”: rules for mandatory access control
• Business computers
– Initially adopted military’s security methods
• Today’s computing
– Requires comprehensive computer security plans

Electronic Commerce, Tenth Edition 5


Computer Security and Risk
Management
• Computer security
– Asset protection from unauthorized access, use,
alteration, and destruction
• Physical security
– Includes tangible protection devices
• Alarms, guards, fireproof doors, security fences, safes
or vaults, and bombproof buildings
• Logical security
– Asset protection using nonphysical means

Electronic Commerce, Tenth Edition 6


Computer Security and Risk
Management (cont’d.)
• Threat
– Any act or object posing danger to computer assets
• Countermeasure
– Procedure (physical or logical)
• Recognizes, reduces, and eliminates threat
– Extent and expense of countermeasures
• Vary depending on asset importance

Electronic Commerce, Tenth Edition 7


Computer Security and Risk
Management (cont’d.)
• Risk management model
– Four general organizational actions
• Impact (cost) and probability of physical threat
– Also applicable for protecting Internet and electronic
commerce assets from physical and electronic threats
• Electronic threat examples:
– Impostors, eavesdroppers, thieves
• Eavesdropper (person or device)
– Listen in on and copy Internet transmissions

Electronic Commerce, Tenth Edition 8


© Cengage Learning 2013
FIGURE 10-1 Risk management model

Electronic Commerce, Tenth Edition 9


Computer Security and Risk
Management (cont’d.)
• Crackers or hackers (people)
– Write programs; manipulate technologies
• Obtain unauthorized access to computers and networks
• White hat hacker and black hat hacker
– Distinction between good hackers and bad hackers
• Good security scheme implementation
– Identify risks
– Determine how to protect threatened assets
– Calculate costs to protect assets

Electronic Commerce, Tenth Edition 10


Elements of Computer Security
• Secrecy
– Protecting against unauthorized data disclosure
– Ensuring data source authenticity
• Integrity
– Preventing unauthorized data modification
– Man-in-the-middle exploit
• E-mail message intercepted; contents changed before
forwarded to original destination
• Necessity
– Preventing data delays or denials (removal)
– Delaying message or completely destroying it

Electronic Commerce, Tenth Edition 11


Establishing a Security Policy
• Security policy
– Assets to protect and why, protection responsibility,
acceptable and unacceptable behaviors
– Physical security, network security, access
authorizations, virus protection, disaster recovery
• Military policy: stresses separation of multiple levels
of security
• Corporate information classifications
– Public
– Company confidential

Electronic Commerce, Tenth Edition 12


Establishing a Security Policy (cont’d.)
• Steps to create security policy
– Determine assets to protect from threats
– Determine access to various system parts
– Identify resources to protect assets
– Develop written security policy
– Commit resources
• Comprehensive security plan goals
– Protect privacy, integrity, availability; authentication
– Selected to satisfy Figure 10-2 requirements

Electronic Commerce, Tenth Edition 13


© Cengage Learning 2013
FIGURE 10-2 Requirements for secure electronic commerce

Electronic Commerce, Tenth Edition 14


Establishing a Security Policy (cont’d.)
• Security policies information sources
– WindowSecurity.com site
– Information Security Policy World site
• Absolute security: difficult to achieve
– Create barriers deterring intentional violators
– Reduce impact of natural disasters and terrorist acts
• Integrated security
– Having all security measures work together
• Prevents unauthorized disclosure, destruction,
modification of assets

Electronic Commerce, Tenth Edition 15


Establishing a Security Policy (cont’d.)
• Security policy points
– Authentication: Who is trying to access site?
– Access control: Who is allowed to log on to and
access site?
– Secrecy: Who is permitted to view selected
information?
– Data integrity: Who is allowed to change data?
– Audit: Who or what causes specific events to occur,
and when?

Electronic Commerce, Tenth Edition 16


Security for Client Computers
• Client computers
– Must be protected from threats
• Threats
– Originate in software and downloaded data
– Malevolent server site masquerades as legitimate
Web site
• Chapter topics organized to follow the
transaction-processing flow
– Beginning with consumer
– Ending with Web server at electronic commerce site

Electronic Commerce, Tenth Edition 17


Cookies and Web Bugs
• Internet connection between Web clients and
servers
– Stateless connection
• Each information transmission is independent
• No continuous connection (open session) maintained
between any client and server
• Cookies
– Small text files Web servers place on Web client
– Identify returning visitors
– Allow continuing open session

Electronic Commerce, Tenth Edition 18


Cookies and Web Bugs (cont’d.)
• Time duration cookie categories
– Session cookies: exist until client connection ends
– Persistent cookies: remain indefinitely
– Electronic commerce sites use both
• Cookie sources
– First-party cookies
• Web server site places them on client computer
– Third-party cookies
• Different Web site places them on client computer

Electronic Commerce, Tenth Edition 19


Cookies and Web Bugs (cont’d.)
• Disable cookies entirely
– Complete cookie protection
– Problem
• Useful cookies blocked (along with others)
• Full site resources not available
• Web browser cookie management functions
– Refuse only third-party cookies
– Review each cookie before accepted
– Provided by most Web browsers

Electronic Commerce, Tenth Edition 20


FIGURE 10-3 Mozilla Firefox dialog box for managing stored cookies
Electronic Commerce, Tenth Edition 21
Cookies and Web Bugs (cont’d.)
• Web bug
– Tiny graphic that third-party Web site places on
another site’s Web page
– Purpose
• Provide a way for a third-party site to place cookie on
visitor’s computer
• Internet advertising community:
– Calls Web bugs “clear GIFs” or “1-by-1 GIFs”
• Graphics created in GIF format
• Color value of “transparent,” small as 1 pixel by 1 pixel

Electronic Commerce, Tenth Edition 22


Active Content
• Active content
– Programs embedded transparently in Web pages
– Cause action to occur
– E-commerce example
• Place items into shopping cart; compute tax and costs
• Advantages
– Extends HTML functionality
– Moves data processing chores to client computer
• Disadvantages
– Can damage client computer

Electronic Commerce, Tenth Edition 23


Active Content (cont’d.)
• Cookies, Java applets, JavaScript, VBScript,
ActiveX controls, graphics, Web browser plug-ins,
e-mail attachments
• Scripting languages: provide executable script
– Examples: JavaScript and VBScript
• Applet: small application program
– Typically runs within Web browser
• Some browsers include tools limiting applets’ actions
• Active content modules
– Embedded in Web pages (invisible)

Electronic Commerce, Tenth Edition 24


FIGURE 10-4 Advanced JavaScript settings in Mozilla Firefox
Electronic Commerce, Tenth Edition 25
Active Content (cont’d.)
• Crackers: embed malicious active content
• Trojan horse
– Program hidden inside another program or Web page
• Masking true purpose
– May result in secrecy and integrity violations
• Zombie (Trojan horse)
– Secretly takes over another computer
– Launches attacks on other computers
• Botnet (robotic network, zombie farm)
– All controlled computers act as an attacking unit

Electronic Commerce, Tenth Edition 26


Java Applets
• Java programming language
– Developed by Sun Microsystems
– Widespread use in Web pages: active content
• Java: platform-independent programming language
– Provides Web page active content
– Server sends applets with client-requested pages
– Most cases: operation visible to visitor
– Possibility: functions not noticed by visitor

Electronic Commerce, Tenth Edition 27


Java Applets (cont’d.)
• Advantages
– Adds functionality to business application’s
functionality; relieves server-side programs
• Disadvantage
– Possible security violations (Trojan horse, zombie)

Electronic Commerce, Tenth Edition 28


Java Applets (cont’d.)
• Java sandbox
– Confines Java applet actions to set of rules defined by
security model
– Rules apply to all untrusted Java applets
• Not established as secure
– Java applets running within sandbox constraint
• Does not allow full client system access
• Prevents secrecy (disclosure) and integrity (deletion or
modification) violations

Electronic Commerce, Tenth Edition 29


JavaScript
• JavaScript
– Scripting language developed by Netscape
– Enables Web page designers to build active content
– Based loosely on Sun’s Java programming language
– Can be used for attacks
• Cannot commence execution on its own
• User must start ill-intentioned JavaScript program

Electronic Commerce, Tenth Edition 30


ActiveX Controls
• ActiveX control
– Objects containing programs and properties Web
designers place on Web pages
• Component construction
– Many different programming languages
• Common: C++ and Visual Basic
• Run on Windows operating systems computers
• Executed on client computer like any other program

Electronic Commerce, Tenth Edition 31


ActiveX Controls (cont’d.)
• Comprehensive ActiveX controls list
– ActiveX page at Download.com
• Security danger
– Execute like other client computer programs
– Have access to full system resources
• Cause secrecy, integrity, and necessity violations
– Actions cannot be halted once started
• Web browsers
– Provide notice of Active-X download or install

Electronic Commerce, Tenth Edition 32


FIGURE 10-5 ActiveX control download warning dialog box in Internet Explorer

Electronic Commerce, Tenth Edition 33


Graphics and Plug-Ins
• Graphics, browser plug-ins, and e-mail attachments
can harbor executable content
• Graphic: embedded code can harm client computer
• Browser plug-ins (programs)
– Enhance browser capabilities
– Popular plug-ins: Adobe Flash Player, Apple’s
QuickTime Player, Microsoft Silverlight,
RealNetworks’ RealPlayer
– Can pose security threats
• 1999 RealPlayer plug-in
• Plug-ins executing commands buried within media
Electronic Commerce, Tenth Edition 34
Viruses, Worms, and Antivirus Software
• Programs display e-mail attachments by
automatically executing associated programs
– Macro viruses within attached files can cause damage
• Virus: software
– Attaches itself to another program
– Causes damage when host program activated
• Worm: virus
– Replicates itself on computers it infects
– Spreads quickly through the Internet
• Macro virus
– Small program (macro) embedded in file

Electronic Commerce, Tenth Edition 35


Viruses, Worms, and Antivirus Software
(cont’d.)
• ILOVEYOU virus (“love bug”)
– Spread with amazing speed
– Infected computers and clogged e-mail systems
– Replicated itself explosively through Outlook e-mail
– Caused other harm
• 2001 Code Red and Nimda: virus-worm
combinations
– Multivector virus: entered computer system in
several different ways (vectors)
• 2002 and 2003: new virus-worm combinations
– Example: Bugbear

Electronic Commerce, Tenth Edition 36


Viruses, Worms, and Antivirus Software
(cont’d.)
• Antivirus software
– Detects viruses and worms
– Either deletes or isolates them on client computer
• 2005 and 2006 Zotob
– New breed of Trojan horse-worm combination
• 2007: Storm virus
• 2008 and continuing into 2009: Conflicker
• 2009 and 2010: URLzone and Clampi
– New viruses designed specifically to hijack users’
online banking sessions
Electronic Commerce, Tenth Edition 37
Viruses, Worms, and Antivirus Software
(cont’d.)
• 2010: new Trojan horse-worm combination attack
– Spread through a computer operating system
– Designed to target industrial equipment
• German industrial giant Siemens’ control systems
• 2011: Zeus and SpyEye combined
– Targeted bank account information
– Not visible in Microsoft Windows Task Manager
– Intercept credit card or online banking data entered in
Web browser

Electronic Commerce, Tenth Edition 38


FIGURE 10-6 Major viruses, worms, and Trojan horses

Electronic Commerce, Tenth Edition 39


FIGURE 10-6 Major viruses, worms, and Trojan horses (continued)
Electronic Commerce, Tenth Edition 40
FIGURE 10-6 Major viruses, worms, and Trojan horses (continued)
Electronic Commerce, Tenth Edition 41
FIGURE 10-6 Major viruses, worms, and Trojan horses (continued)

Electronic Commerce, Tenth Edition 42


FIGURE 10-6 Major viruses, worms, and Trojan horses (continued)

Electronic Commerce, Tenth Edition 43


FIGURE 10-6 Major viruses, worms, and Trojan horses (continued)

Electronic Commerce, Tenth Edition 44


Viruses, Worms, and Antivirus Software
(cont’d.)
• Companies that track viruses, sell antivirus
software, provide virus descriptions on Web sites
– Symantec (Symantec Security Response)
– McAfee (McAfee Virus Information)
• Data files must be updated regularly
– Recognize and eliminate newest viruses
• Some Web e-mail systems:
– Provide and update antivirus software
• Used to scan attachments before downloading
– Example: Yahoo! Mail

Electronic Commerce, Tenth Edition 45


Digital Certificates
• Digital certificate (digital ID)
– E-mail message attachment or program embedded in
Web page
– Verifies sender or Web site
– Contains a means to send encrypted message
– Signed message or code
• Provides proof of holder identified by the certificate
– Used for online transactions
• Electronic commerce, electronic mail, and electronic
funds transfers

Electronic Commerce, Tenth Edition 46


© Cengage Learning 2013
FIGURE 10-7 Delmar Cengage Learning’s digital certificate information displayed
in Firefox browser
Electronic Commerce, Tenth Edition 47
Digital Certificates (cont’d.)
• Digital certificate for software:
– Assurance software was created by specific company
– Does not attest to quality of software
• Certification authority (CA)
– Issues digital certificates to organizations, individuals
• Digital certificates cannot be forged easily
• Six main elements: owner’s identifying information,
owner’s public key, dates certificate is valid, serial
number, issuer name, issuer digital signature

Electronic Commerce, Tenth Edition 48


Digital Certificates (cont’d.)
• Key
– Number: usually long binary number
• Used with encryption algorithm
• “Lock” message characters being protected
– Longer keys provide better protection
• Identification requirements vary
– Driver’s license, notarized form, fingerprints
• Companies offering CA services
– Thawte, VeriSign, Comodo, DigiCert, Entrust,
GeoTrust, RapidSSL.com

Electronic Commerce, Tenth Edition 49


Digital Certificates (cont’d.)
• Secure Sockets Layer-Extended Validation
(SSL-EV) digital certificate
– Issued after more extensive verification confirmed
• Annual fees
– $200 to more than $1500
• Digital certificates expire after period of time
– Provides protection (users and businesses)
– Must submit credentials for reevaluation periodically

Electronic Commerce, Tenth Edition 50


FIGURE 10-8 Internet Explorer address window display for an SSL-EV Web site

Electronic Commerce, Tenth Edition 51


Steganography
• Steganography
– Hiding information within another piece of information
• Can be used for malicious purposes
• Hiding encrypted file within another file
– Casual observer cannot detect anything of importance
in container file
– Two-step process
• Encrypting file protects it from being read
• Steganography makes it invisible
• Al Qaeda used steganography to hide attack orders

Electronic Commerce, Tenth Edition 52


Physical Security for Clients
• Client computers
– Control important business functions
– Same physical security as early systems
• New physical security technologies
– Fingerprint readers (less than $100)
• Stronger protection than password approaches
• Biometric security device
– Identification using element of person’s biological
makeup
• Writing pads, eye scanners, palm reading scanners,
reading back of hand vein pattern

Electronic Commerce, Tenth Edition 53


Client Security for Mobile Devices
• Security measures
– Access password
– Remote wipe: clears all personal data
• Can be added as an app
• Capability through corporate e-mail synchronization
– Antivirus software
• Rogue apps: contain malware or collect information
and forward to perpetrators
– Apple App Store tests apps before authorizing sales
– Android Market does less extensive testing
– Users should not rush to install latest app
Electronic Commerce, Tenth Edition 54
Communication Channel Security
• Internet
– Not designed to be secure
– Designed to provide redundancy
• Remains unchanged from original insecure state
– Message traveling on the Internet
• Subject to secrecy, integrity, and necessity threats

Electronic Commerce, Tenth Edition 55


Secrecy Threats
• Secrecy
– Prevention of unauthorized information disclosure
– Technical issue
• Requiring sophisticated physical and logical
mechanisms
• Privacy
– Protection of individual rights to nondisclosure
– Legal matter

Electronic Commerce, Tenth Edition 56


Secrecy Threats (cont’d.)
• E-mail message
– Secrecy violations protected using encryption
• Protects outgoing messages
– Privacy issues address whether supervisors are
permitted to read employees’ messages randomly
• Electronic commerce threat
– Sensitive or personal information theft
– Sniffer programs
• Record information passing through computer or router

Electronic Commerce, Tenth Edition 57


Secrecy Threats (cont’d.)
• Electronic commerce threat (cont’d.)
– Backdoor: electronic holes
• Left open accidentally or intentionally
• Content exposed to secrecy threats
• Example: Cart32 shopping cart program backdoor
– Stolen corporate information
• Eavesdropper example
• Web users continually reveal information
– Secrecy breach
– Possible solution: anonymous Web surfing

Electronic Commerce, Tenth Edition 58


Integrity Threats
• Also known as active wiretapping
– Unauthorized party alters message information
stream
• Integrity violation example
– Cybervandalism
• Electronic defacing of Web site
• Masquerading (spoofing)
– Pretending to be someone else
– Fake Web site representing itself as original

Electronic Commerce, Tenth Edition 59


Integrity Threats (cont’d.)
• Domain name servers (DNSs)
– Internet computers maintaining directories
• Linking domain names to IP addresses
– Perpetrators use software security hole
• Substitute their Web site address in place of real one
• Spoofs Web site visitors
• Phishing expeditions
– Capture confidential customer information
– Common victims
• Online banking, payment system users

Electronic Commerce, Tenth Edition 60


Necessity Threats
• Also known as delay, denial, denial-of-service
(DoS) attack
– Disrupt or deny normal computer processing
– Intolerably slow-speed computer processing
• Renders service unusable or unattractive
• Distributed denial-of-service (DDoS) attack
– Launch simultaneous attack on a Web site via botnets
• DoS attacks
– Remove information altogether
– Delete transmission or file information

Electronic Commerce, Tenth Edition 61


Necessity Threats (cont’d.)
• Denial attack examples:
– Quicken accounting program diverted money to
perpetrator’s bank account
– High-profile electronic commerce company received
flood of data packets
• Overwhelmed sites’ servers
• Choked off legitimate customers’ access

Electronic Commerce, Tenth Edition 62


Threats to the Physical Security of
Internet Communications Channels
• Internet’s packet-based network design:
– Precludes it from being shut down
• By attack on single communications link
• Individual user’s Internet service can be interrupted
– Destruction of user’s Internet link
• Larger companies, organizations
– Use more than one link to main Internet backbone

Electronic Commerce, Tenth Edition 63


Threats to Wireless Networks
• Wireless Encryption Protocol (WEP)
– Rule set for encrypting transmissions from the
wireless devices to the wireless access points (WAPs)
• Wardrivers
– Attackers drive around in cars
– Search for accessible networks
• Warchalking
– Place chalk mark on building
• Identifies easily entered wireless network nearby
– Web sites include wireless access locations maps

Electronic Commerce, Tenth Edition 64


Threats to Wireless Networks (cont’d.)
• Preventing attacks by wardrivers
– Turn on WEP
– Change default login and password settings
• Example
– Best Buy wireless point-of-sale (POS)
• Failed to enable WEP
• Customer launched sniffer program
• Intercepted data from POS terminals

Electronic Commerce, Tenth Edition 65


Encryption Solutions
• Encryption: coding information using
mathematically based program, secret key
• Cryptography: science studying encryption
– Science of creating messages only sender and
receiver can read
• Steganography
– Makes text undetectable to naked eye
• Cryptography converts text to other visible text
– With no apparent meaning

Electronic Commerce, Tenth Edition 66


Encryption Solutions (cont’d.)
• Encryption algorithms
– Encryption program
• Transforms normal text (plain text) into cipher text
(unintelligible characters string)
– Encryption algorithm
• Logic behind encryption program
• Includes mathematics to do transformation
– Decryption program
• Encryption-reversing procedure: message is decoded
or decrypted

Electronic Commerce, Tenth Edition 67


Encryption Solutions (cont’d.)
• Encryption algorithms (cont’d.)
– National Security Agency controls dissemination
– U.S. government banned publication of details
• Illegal for U.S. companies to export
– Encryption algorithm property
• May know algorithm details
• Unable to decipher encrypted message without
knowing key encrypting the message
– Key type subdivides encryption into three functions
• Hash coding, asymmetric encryption, symmetric
encryption
Electronic Commerce, Tenth Edition 68
Encryption Solutions (cont’d.)
• Hash coding
– Process uses Hash algorithm
– Calculates number (hash value) from any length
message
– Unique message fingerprint
– Good hash algorithm design
• Probability of collision is extremely small (two different
messages resulting in same hash value)
– Determining message alteration during transit
• Mismatch between original hash value and receiver
computed value

Electronic Commerce, Tenth Edition 69


Encryption Solutions (cont’d.)
• Asymmetric encryption (public-key encryption)
– Encodes messages using two mathematically related
numeric keys
– Public key: one key freely distributed to public
• Encrypt messages using encryption algorithm
– Private key: second key belongs to key owner
• Kept secret
• Decrypt all messages received

Electronic Commerce, Tenth Edition 70


Encryption Solutions (cont’d.)
– Pretty Good Privacy (PGP)
– Software tools using different encryption algorithms
• Perform public key encryption
– Individuals download free versions
• PGP Corporation site, PGP International site
• Encrypt e-mail messages
– Sells business site licenses

Electronic Commerce, Tenth Edition 71


Encryption Solutions (cont’d.)
• Symmetric encryption (private-key encryption)
– Encodes message with one of several available
algorithms
• Single numeric key to encode and decode data
– Message receiver must know the key
– Very fast and efficient encoding and decoding
– Key must be guarded

Electronic Commerce, Tenth Edition 72


Encryption Solutions (cont’d.)
– Problems
• Difficult to distribute new keys to authorized parties
while maintaining security, control over keys
• Private keys do not work well in large environments
– Data Encryption Standard (DES)
• Encryption algorithms adopted by U.S. government
• Most widely used private-key encryption system
• Fast computers break messages encoded with smaller
keys

Electronic Commerce, Tenth Edition 73


Encryption Solutions (cont’d.)
– Triple Data Encryption Standard (Triple DES,
3DES)
• Stronger version of Data Encryption Standard
– Advanced Encryption Standard (AES)
• Alternative encryption standard
• Most government agencies use today
– Longer bit lengths increase difficulty of cracking keys

Electronic Commerce, Tenth Edition 74


Encryption Solutions (cont’d.)
• Comparing asymmetric and symmetric encryption
systems
– Advantages of public-key (asymmetric) systems
• Small combination of keys required
• No problem in key distribution
• Implementation of digital signatures possible
– Disadvantages of public-key systems
• Significantly slower than private-key systems
– Public-key systems: complement rather than replace
private-key systems

Electronic Commerce, Tenth Edition 75


© Cengage Learning 2013
FIGURE 10-9 Comparison of
(a) hash coding, (b) private-key,

and (c) public-key encryption


Electronic Commerce, Tenth Edition 76
Encryption Solutions (cont’d.)
– Web servers accommodate encryption algorithms
• Must communicate with variety of Web browsers
– Secure Sockets Layer (SSL)
• Goal: secures connections between two computers
– Secure Hypertext Transfer Protocol (S-HTTP)
• Goal: send individual messages securely

Electronic Commerce, Tenth Edition 77


Encryption Solutions (cont’d.)
• Secure sockets layer (SSL) protocol
– Provides security “handshake”
– Client and server exchange brief burst of messages
– All communication encoded
• Eavesdropper receives unintelligible information
– Secures many different communication types
• HTTP, FTP, Telnet
– HTTPS: protocol implementing SSL
• Precede URL with protocol name HTTPS

Electronic Commerce, Tenth Edition 78


Encryption Solutions (cont’d.)
– Encrypted transaction generates private session key
• Bit lengths vary (40-bit, 56-bit, 128-bit, 168-bit)
– Session key
• Used by encryption algorithm
• Creates cipher text from plain text during single secure
session
– Secrecy implemented using public-key and private-
key encryption
• Private-key encryption for nearly all communications

Electronic Commerce, Tenth Edition 79


© Cengage Learning 2013
FIGURE 10-10 Establishing an SSL session

Electronic Commerce, Tenth Edition 80


Encryption Solutions (cont’d.)
– After secure session established:
• Public-key encryption no longer used
• Message transmission protected by private-key
encryption
• Session key (private key) discarded when session ends
– Each new connection between client and secure
server requires entire process:
• Beginning with handshake

Electronic Commerce, Tenth Edition 81


Encryption Solutions (cont’d.)
• Secure HTTP (S-HTTP)
– Extension to HTTP providing security features
• Client and server authentication, spontaneous
encryption, request/response nonrepudiation
– Symmetric encryption for secret communications
– Public-key encryption to establish client/server
authentication
– Session negotiation: process between client and
server of proposing and accepting (or rejecting)
various transmission conditions

Electronic Commerce, Tenth Edition 82


Encryption Solutions (cont’d.)
– Establishing secure session
• SSL carries out client-server handshake exchange to
set up secure communication
• S-HTTP sets up security details with special packet
headers exchanged in S-HTTP
– Headers define security technique type
– Header exchanges state:
• Which specific algorithms that each side supports
• Whether client or server (or both) supports algorithm
• Whether security technique required, optional, refused

Electronic Commerce, Tenth Edition 83


Encryption Solutions (cont’d.)
– Secure envelope (complete package)
• Encapsulates message
• Provides secrecy, integrity, and client/server
authentication
• SSL has become:
– More generally accepted standard over S-HTTP

Electronic Commerce, Tenth Edition 84


Using a Hash Function to Create a
Message Digest
• Integrity violation
– Message altered while in transit
• Difficult and expensive to prevent
• Security techniques to detect
• Harm: unauthorized message changes undetected
• Apply two algorithms to eliminate fraud and abuse
– Hash algorithm
– Message digest
• Number summarizing encrypted information

Electronic Commerce, Tenth Edition 85


Converting a Message Digest into a
Digital Signature
• Hash functions: potential for fraud
– Solution: sender encrypts message digest using
private key
• Digital signature
– Encrypted message digest (message hash value)
• Digital signature provides:
– Integrity, nonrepudiation, and authentication
• Provide transaction secrecy
– Encrypt entire string (digital signature, message)
• Digital signatures: same legal status as traditional
signatures
Electronic Commerce, Tenth Edition 86
© Cengage Learning 2013
FIGURE 10-11 Sending and receiving a digitally signed message

Electronic Commerce, Tenth Edition 87


Security for Server Computers
• Server vulnerabilities
– Exploited by anyone determined to cause destruction
or acquire information illegally
• Entry points
– Web server and its software
– Any back-end programs containing data
• No system is completely safe
• Web server administrator
– Ensures security policies documented; considered in
every electronic commerce operation

Electronic Commerce, Tenth Edition 88


Web Server Threats
• Compromise of secrecy
– By allowing automatic directory listings
– Solution: turn off folder name display feature
• Sensitive file on Web server
– Holds Web server username-password pairs
– Solution: store authentication information in encrypted
form

Electronic Commerce, Tenth Edition 89


Web Server Threats (cont’d.)
• Passwords that users select
– Easily guessable
• Dictionary attack programs cycle through electronic
dictionary, trying every word as password
– Solutions
• User password requirements
• Use password assignment software to check user
password against dictionary
• Help creating very strong passwords:
– Gibson Research Corporation’s Ultra High Security
Password Generator
Electronic Commerce, Tenth Edition 90
© Cengage Learning 2013
FIGURE 10-12 Examples of passwords, from very weak to very strong
Electronic Commerce, Tenth Edition 91
Database Threats
• Usernames and passwords
– Stored in unencrypted table
– Database fails to enforce security altogether
• Relies on Web server to enforce security
• Unauthorized users
– Masquerade as legitimate database users
• Trojan horse programs hide within database system
– Reveal information
– Remove all access controls within database

Electronic Commerce, Tenth Edition 92


Other Programming Threats
• Java or C++ programs executed by server
– Passed to Web servers by client
– Reside on server
– Use a buffer
• Memory area set aside holding data read from file or
database
– Buffer overrun (buffer overflow) error
• Programs filling buffers malfunction and overfill buffer
• Excess data spilled outside designated buffer memory
• Cause: error in program or intentional
• 1998 Internet worm

Electronic Commerce, Tenth Edition 93


Other Programming Threats (cont’d.)
• Insidious version of buffer overflow attack
– Writes instructions into critical memory locations
– Web server resumes execution by loading internal
registers with address of attacking program’s code
• Reducing potential buffer overflow damage
– Good programming practices
– Some hardware functionality
• Mail bomb attack
– Hundreds (thousands) send message to particular
address

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Threats to the Physical Security of Web
Servers
• Protecting Web servers
– Put computers in commerce service provider (CSP)
facility
• Very high-level physical security on CSP
– Maintain server content’s backup copies at remote
location
– Rely on service providers
• Offer managed services including Web server security
– Hire smaller, specialized security service providers

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Access Control and Authentication
• Controlling who and what has access to Web server
• Authentication
– Identity verification of entity requesting computer
access
• Server user authentication
– Server must successfully decrypt user’s digital
signature-contained certificate
– Server checks certificate timestamp
– Server uses callback system
• Certificates authenticate client computers and their
users
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Access Control and Authentication
(cont’d.)
• Usernames and passwords
– Provide some protection element
• Maintain usernames in plain text
– Encrypt passwords with one-way encryption algorithm
• Problem
– Site visitor may save username and password as a
cookie
• Might be stored in plain text
• Access control list (ACL)
– Restrict file access to selected users

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Firewalls
• Firewall
– Software, hardware-software combination
– Installed in a network to control packet traffic
• Placed at Internet entry point of network
– Defense between network and the Internet
• Between network and any other network
• Principles
– All traffic must pass through it
– Only authorized traffic allowed to pass
– Immune to penetration

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Firewalls (cont’d.)
• Trusted: networks inside firewall
• Untrusted: networks outside firewall
• Filter permits selected messages though network
• Separate corporate networks from one another
– Coarse need-to-know filter
• Firewalls segment corporate network into secure zones
• Large organizations with multiple sites
– Install firewall at each location
• All locations follow same security policy

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Firewalls (cont’d.)
• Should be stripped of unnecessary software
• Packet-filter firewalls
– Examine all data flowing back and forth between
trusted network (within firewall) and the Internet
• Gateway servers
– Filter traffic based on requested application
– Limit access to specific applications
• Telnet, FTP, HTTP
• Proxy server firewalls
– Communicate with the Internet on private network’s
behalf

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Firewalls (cont’d.)
• Perimeter expansion problem
– Computers outside traditional physical site boundary
• Servers under almost constant attack
– Install intrusion detection systems
• Monitor server login attempts
• Analyze for patterns indicating cracker attack
• Block further attempts originating from same IP address
• Cloud computing: firewall products lagging behind
• Personal firewalls
– Software-only firewalls on individual client computers
– Gibson Research Shields Up! Web site

Electronic Commerce, Tenth Edition 101


Organizations that Promote Computer
Security
• Following the Internet Worm of 1988
– Organizations formed to share information
• About threats to computer systems
• Principle followed
– Sharing information about attacks and defenses for
attacks
• Helps everyone create better computer security

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CERT
• Computer Emergency Response Team
• Housed at Carnegie Mellon University
– Software Engineering Institute
• Maintains effective, quick communications
infrastructure among security experts
– Security incidents avoided, handled quickly
• Provides security risk information
• Posts security event alerts
• Primary authoritative source for viruses, worms, and
other types of attack information
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Other Organizations
• 1989: System Administrator, Audit, Network and
Security (SANS) Institute
– Education and research efforts
• Research reports, security alerts, and white papers
– SANS Internet Storm Center Web site
• Current information on location, intensity of computer
attacks worldwide
• CERIAS (Center for Education and Research in
Information Assurance and Security)
– Multidisciplinary information security research and
education
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Other Organizations (cont’d.)
• Center for Internet Security
– Not-for-profit cooperative organization
– Helps electronic commerce companies
• CSO Online
– Articles from CSO Magazine
– Computer security-related news items
• Infosecurity.com
– Articles about all types of online security issues

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Computer Forensics and Ethical
Hacking
• Computer forensics experts (ethical hackers)
– Computer sleuths hired to probe PCs
– Locate information usable in legal proceedings
– Job of breaking into client computers
• Computer forensics field
– Responsible for collection, preservation, and
computer-related evidence analysis
• Companies hire ethical hackers to test computer
security safeguards

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Summary
• Physical and logical computer security important in
electronic commerce
– Security policy can identify risks and countermeasures
to reduce risks
• Key security provisions
– Secrecy, integrity, available service
• Client threats and solutions
– Virus threats, active content threats, cookies
• Communication channels’ threats and solutions
– Encryption provides secrecy

Electronic Commerce, Tenth Edition 107


Summary (cont’d.)
• Web Server threats and solutions
– Threats from programs, backdoors
• Security organizations
– Share information about threats, defenses
• Computer forensics
– “Break into” computers searching for legal use data
– Assist in identifying security weaknesses

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