Bd541Module VI E-Commerce Jan 2011

8/6/2019 Bd541Module VI E-Commerce Jan 2011

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Amity School of Business

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BBA, Semester IV

E-Commerce

Ms Kareena Bhatia


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MODULE-VI

Security Threats with E-Commerce


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Internet Security Internet security is about protecting information. The risks inherent in

e-commerce can be harnessed only through appropriate securitymeasures and business and legal procedures that ensure the integrity

and reliability of Internet transactions. The electronic system that support e-commerce is susceptible to abuse

and failure in many ways:

- Fraud, resulting in direct financial loss. Funds may betransferred from one account to another

- Theft of confidential, proprietary, technological, or marketinginformation belonging to the firm or to the customer

- Disruption of service, resulting in major losses to the businessor inconvenience to the customer

- Loss of customer confidence stemming from illegal interruptioninto customer files or company business


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E-Commerce Security issuesThe following points outline the security issues related to e-commerce.

Confidentially : Knowing who can read data and ensuring that

information in the network remain private.

Authentication : Making sure that message senders or principals are

who they say they are.

Access Control : Restricting the use of a resource to authorized

principals.

Integrity : Making sure that information is not accidentally or

maliciously altered or corrupted in transit.

Nonrepudiation : Ensuring that principals cannot deny that they sent

the message.


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Designing e-security involves five steps:

1. Assessing Web Security needs.2. Establishing a Good Policy.

3. Fulfilling Web security needs.

4. Structuring the Security Environment.

5. Monitoring the System.

Designing E-Security


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Assessing Web Security Needs A chief security officer is in charge of overseeing the entire security

setup of the firm. He or she should be well versed in the technology as

well as the nature of the business.

The person must also be able to pinpoint which security breaches

threaten the companys business and how well the company is in

compliance with various laws and regulations.


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Establishing A Good Policy Policies should cover the threats that attack confidentially, integrity

and privacy.

Security Polices should cover the entire e-commerce system includingthe merchants local area networks, hardware, software, firewalls,

protocols, standards, databases, and the staff directly involved in thee-commerce process.

The policies should spell out Internet security practices, the nature andlevel of risks, the level of protection, and the procedure to be followedin case of threats and recover from failure.


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Fulfilling Web Security Needs Design consideration for the company is to list top vulnerabilities and

take a close look at critical applications to decide risk levels. Theamount of security a Web merchant needs depends on the sensitivity

of its data and the demand for it. For example, if your site collectscredit card numbers for access, you want the highest security possiblefor the Web server, the network and the Web site.

Consult with your Web administrator or an outside security consultantto see what options are available and how to put them to good use.


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Structuring The Security Environment The design begins with sketching out the stepping stones- the

sequence and parameters in the security network based on the securitypolicy and requirements of the e-commerce system.

How much security goes into a system depends on how much risk thecompany is willing to take, the security policy it willing to adopt, andthe present state of security practices in the workplace.

A security perimeter generally includes firewalls, authentication,virtual private networks, and intrusion detection devices. Installingsuch software and devices is part of physical design. The challenge isto police the entire perimeter.


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Authorize and Monitoring TheSecurity system

Once the perimeter is secure and only authorized users are allowed

access to the e-commerce site, the next step is to install a system that

generates authorization to different users to handle different jobs.

These functions require that the security system be monitored via

feedback mechanisms to ensure that the entire system is working

properly.

Monitoring means capturing processing details for evidence, verifyingthat e-commerce is operating within the security policy, and verifying

that attacks have been unsuccessful.


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Kinds of Threats and Crimes1. Those that are physically related : For example, a hacker might

attempt to steal or damage inventory. Other example include stolencredit card records, stolen computer hardware or software. An

attacker, often by guessing passwords, might succeed in gainingaccess to another users account.

2. Those that are order related: For example, a customer mightattempt to use an invalid or a stolen credit card or claim no

merchandise was received on a good credit card. Children might usetheir parents credit card without permission. Insiders can do a lot toinfect an order because they have access to sensitive systems andinformation.


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Kinds of Threats and Crimes3. Those that are electronically related: A hacker might try to sniff

e-mail information or attempt to steal credit card numbers and use

them illegally at a later date. Sniffer (a person or a program thatuses the Internet to record information that transmits through a

router from its source to its destination). Another example of an

electronically related attack is damaging or destroying a Web site

and infecting the entire business-to-consumer interface with

malicious software called a virus.


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The Threats Posed to E-CommerceServers

E-Commerce is the transaction of goods and services and the payment

for those goods and services over the Internet. Therefore, the physical

place where all of these transactions occur is at the Server level. The

server can be viewed as the central repository for your E-Commerce

Place of Business which consists of the actual website which displaysyour products and services, the customer database, and the payment

mechanism.


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Threats to E-Commerce servers can be classified as either(1) Malicious Code Threats (2) Transmission Threats.

Malicious code is introduced into the server in order to gain

access to the system resources. Very often, the intent ofMalicious Code Attacks is to cause large scale damage to theE-Commerce server.

The threats and risks can be classified as either as active or

passive. With passive threats, the main goal is to listen totransmissions to the server. With active threats, the intent is toalter the flow of data transmission aimed directly at the E-Commerce server.


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Malicious Code ThreatsViruses and Worms

A virus needs a host of some sort in order to cause damage to thesystem. The exact definition is . . . a virus attaches itself to

executable code and is executed when the software program begins torun or an infected file is opened. So for example, a virus needs a filein which to attach itself to. Once that file is opened, the virus can thencause the damage. This damage can range from the deletion of somefiles to the total reformatting of the hard drive. The key to thing toremember about viruses is that they cannot by themselves spread-they

require a host file. However, worms are very much different. Aworm does not need a host to replicate. Rather, the worm replicatesitself through the Internet, and can literally infect millions ofcomputers on a global basis in just a matter of hours. However,worms can shut down parts of the Internet or E-Commerce servers,

because they can use up valuable resources of the Internet, as well asthe memory and processing power of servers and other computers.


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Malicious Code ThreatsTrojan Horses

A Trojan Horse is a piece of programming code that is layered behindanother program, and can perform covert, malicious functions. Forexample, your E-Commerce server can display a cool-lookingscreen saver, but behind that could be a piece of hidden code, causingdamage to your system. One way to get a Trojan Horse attack is bydownloading software from the Internet.

Logic Bombs A Logic Bomb is a version of a Trojan Horse, however, it is event or

time specific. For example, a logic bomb will release malicious or

rogue code in an E-Commerce server after some specific time has

elapsed or a particular event in application or processing has occurred.


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Transmission ThreatsDenial of Service Attacks

With a Denial of Service Attack, the main intention is to deny your

customers the services provided on your E-Commerce server. Thereis no actual intent to cause damage to files or to the system, but the

goal is to literally shut the server down. This happens when a massive

amount of invalid data is sent to the server. Because the server can

handle and process so much information at any given time, it is unable

to keep with the information and data overflow. As a result, the server

becomes confused, and subsequently shuts down.


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Transmission ThreatsPing of Death

When we surf the Web, or send E-Mail, the communications betweenour computer and the server takes place via the data packet. It is thedata packet that contains the information and the request forinformation that is sent from our computer to other computers over theInternet. The communication protocol which is used to govern theflow of data packets is called Transmission Control Protocol/InternetProtocol, or TCP/IP for short. The TCP/IP protocol allows for data

packets to be as large as 65,535 bytes. With a Ping of Death Attack, amassive data packet is sent i.e., > 65,535 bytes. As a result, thememory buffers of the E-Commerce Server are totally overloaded,thus causing it to crash.


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Phishing Attacks

Phishing can be defined as the act of sending an e-mail to a user

falsely claiming to be an established legitimate enterprise in an

attempt to con the user into surrendering private information that will

be used for identity theft. For example, fraudulent e-mail could be

sent to your customers claiming that their online account is about to

expire, or that there is a security upgrade that will take place

affecting their online account. After they are tricked into believing

the content of the Phishing e-mail, the customer then clicks on thelink, and submits all of their confidential information. All Phishing

e-mail contains a link, or a web address, in which the customer clicks

on thinking that they are using secure and legitimate site.

Customer Related Threats


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Transmission ThreatsData Packet Sniffing

This refers to the use of Data Packet Sniffers, also known simply as

sniffers. While it is an invaluable tool to the Network

Administrator for troubleshooting and diagnosis, an attacker can alsouse a sniffer to intercept the data packet flow and analyze the

individual data packets. Usernames, passwords, and other

confidential customer data can then be hijacked from the E-Commerce

server. This is a very serious problem, especially in wireless

networks, as the data packets literally leave the confines of thenetwork cabling and travel in the air. Ultimately, Data Packet

Sniffing can lead to hijacking sessions. This is when the attacker

eventually takes control over the network connection, kicks off

legitimate users (such as your customers) from the E-Commerce

server, and ultimately gains control of it.


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Security Protection and Recovery

Basic Internet Security Practices

Passwords

Firewalls

Biometrics


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FIREWALLS A firewall is a combination of hardware and software that sits between

the internet and internal network of an organization to protect thenetwork from outside attack (Fig. 1). It can examine the data enteringor leaving from the network and can filter the data according to

certain rules, thus, protects the network from an attack.

It uses a set of rules to determine whether outgoing or incoming datapackets are allowed to pass through the firewall. For example, we can,as a rule, specify IP addresses of sending devices such that packets

from these IP addresses are not allowed to enter the network. TheFirewall would stop them from entering.


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Cryptography Cryptography is the technique of converting a message intounintelligible or non-understandable form such that even if someunauthorized or unwanted person intercepts the message he/she wouldstill not be able to make any sense out of it. Cryptography isthousands of years old.

Techniques used for cryptography Substitution In substitution wereplace each letter in the message with another to make the messagenon-understandable. For example, each letter a in the message can

be replaced with letter d and letter b with letter e and so on.

Transposition It is based on scrambling the characters in a message.

A transposition system may first write a message into a table row byrow then the message can be read and rewritten column by column tomake it scrambled (see Fig 1)


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Cryptography Without cryptography, it is doubtful that banks, businesses and

individuals would feel safe doing business online.

Cryptography is a collection of mathematical techniques used toensure confidentiality of information. The process of scrambling amessage with the help of a key is called Encryption. The process ofunscrambling a message using an appropriate key is calledDecryption

There are two types of cryptography - Symmetric and Asymmetriccryptography.


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Symmetric Cryptography

In symmetric cryptography same keys are used for encryption

and decryption.

Asymmetric or Public Key Cryptography

In this type a pair of public and private keys is used for

encryption and decryption


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PrivateKey Cryptography(Symmetric Encryption)

In private-key cryptography, the sender and recipient agree

beforehand on a secret private key. The plaintext is somehow

combined with the key to create the cipher text. The method of

combination is such that, it is hoped, an adversary could not

determine the meaning of the message without decrypting the

message, for which he needs the keys.

The following diagram illustrates the Encryption Process .

The following diagram illustrates the Decryption Process


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Private-key methods are efficient and difficult to break.

However, one major drawback that the key must be

exchanged between the sender and recipient beforehand,

raising the issue of how to protect the secrecy of the key.


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Public-Key Cryptography (Asymmetric Encryption)

A encryption system that uses two keys -- a public key

known to everyone and a private or secret key known only to the

recipient of the message.

An important element to the public key system is that the

public and private keys are related in such a way that only the

public key can be used to encrypt messages and only thecorresponding private key can be used to decrypt them


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E-Commerce : Encryption contd

(Alices public key)

(Alices private key)

Bob Doug

Alices public key is known

to all


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HNFmsEm6Un

BejhhyCGKOK

JUxhiygSBCEiC

0QYIh/Hn3xgiK

BcyLK1UcYiY

lxx2lCFHDC/A

"Hey,Alice, howabout lunch at Taco

Bell. I hear they

have free refills!"Encrypt with

Alices public keyBob

(S)

HNFmsEm6Un

BejhhyCGKOKJUxhiygSBCEiC

0QYIh/Hn3xgiK

BcyLK1UcYiY

lxx2lCFHDC/ADecrypt with

Alices private key

"Hey,Alice, how

about lunch at TacoBell. I hear they

have free refills!"

Alice

(R)


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Digital/Electronic Signature An electronic signature means any letters, numbers,

symbols, images, characters or any combination thereof

in electronic form applied to an electronic document whichcan ensure authenticity, integrity and non-repudiation.

It uses public key cryptography Authenticity means that the

message is from a particular source/individual. Integrity

means that the message has not been altered duringtransmission. Non-repudiation means that the execution of

the digital signatures cannot be denied by the one who is

sending the message.


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Digital Certificates

These are the certificates in electronic form which establish whether

or not a public key belongs to the purported owner. A digital

certificate at least comprises a public key, certification information(name, ID etc.) and electronic signatures of a certification authority.


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Certification authority (CA) A certification authority is defined to be a trusted public/private body

that attests the association of a particular individual with his/hercorresponding public key. A CA signs digital certificates with its

private key.

There are many CAs working in the field but the pioneering or themost reputed CA is Verisign which is based in America.

Certification authorities work in a hierarchical fashion. There is the

CA at the top called root CA (the most reputed CA). It can issuecertificates to CAs working below it and those CAs can further issuecertificates to CAs working under them. In this fashion a hierarchy ofCAs is developed with each CA confirming the public key of the CA

below it through a digital certificate.


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Role of a Certification AuthorityThe role of a Certification Authority is analogous or similar to a passport

office. The issuance of passport by the passport office attaches credibility

that this particular person is entitled to travel. However, the passport is

not issued by the office until detailed enquiry/verification about theIdentity of the person is made.

Once a person holds the passport, that confirms that this particular

person whose, name, address etc. is appearing on the passport is entitled

to travel. Similarly, if a digital certificate is issued by a reputed CA thatwould confirm to other people that this particular public key certified by

the CA belongs to this individual only.


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Reason why we use the concept of CAs.We use it for the verification of identify of a person. This is probably thebest solution envisaged for such verification, though it may have certain

loopholes in it. You can realize that the best thing is that Mr. A

personally hands over his public key. On the other hand if I try to trace

his public key against his particulars (name, address, and identification

no.) on a key server

There is a possibility that I end up discovering that there are three, four,

five different public keys against the particulars of same Mr. A. Assume

that all of them have been certified by different CAs. Now, I amconfused that which of these is genuine so that I can use it. Indeed, only

one of them is genuine and the rest are fraudulent keys registered by

fraudulent people using particulars of Mr. A. In this situation I would use

and rely upon that public key of Mr. A that has been certified by the

most re uted CA amon all the CAs. I would treat others as fraudulent.


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The objective of getting fraudulent keys is to intercept/receive the

messages intended to be sent to a particular receiver. So, if someone

intends to receive the messages delivered for Mr. A, he may register

the key against his particulars and get a certificate in this behalf.

Note: That CAs are supposed to issue the certificate after proper

enquiry, otherwise they may also be held liable under different laws.

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