%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %% N.I.A. %% %% Network Information Access %% %% 03MAR90 %% %% Lord Kalkin %% %% File #4 %% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% :_Computers: Crime, Fraud, Waste Part 2 :_Written/Typed/Edited By: Lord Kalkin :_Information Security 2. INFORMATION SECURITY What was called computer security in the 1960s and data security in the 1970s is today more accurately called information security. Information security underscores the value of information in today's society -- the recongition that information is a valuable resource, that it is more than discrete data elements. Information security refers to the controls that protect information from unauthorized access, destruction, modification, disclosure, and delay. Information security addresses safeguards in the processes of data origination, input, processing, and output. The goal of information security is to safeguard the system's assets, to protect and ensure the accuracy and integrity of information, and to minimize the damage that does occur if the information is modified or destroyed. Information security requires accountability for all events that create, modify, provide access to, or disseminate information. Information security provides assurances that the following are achieved: - Confidentiality of sensitive information; - Integrity of information and the related process (origination, input, processing, and output); - Availability of information when needed; and - Accountability of the related information processes. Some techniques to protect the system and provide accountability can be built into the computer. Others can be built into the software. Still others are dependent upon management policies to define appropiate procedures to be followed. Deciding upon the level of sophistication of accountability techniques for a system requires identifying the sensitivity of the information and then determining the appropiate level of security. This document addresses sensitive data as defined in OMB Circular A-130, Management of Federal Information Resources: The Term "sensitive data" means data that require protection due to the risk and magnitude of loss or harm that could result from the inadvertant or deliberate disclosure, alteration, or destruction of the data. The term includes data whose improper use or disclosure could adversly affect the ability of an agency to accomplish its mission, proprietary data, records, about individuals requiring protection under the Privacy Act, and data not releasable under the Freedom of Information Act. CRIMES, ABUSES, AND WASTE A survey of goverment agancies identified techniques used in committing computer-related fraud and abuse. Few of these frauds and abuses involved destruction of computer equipment or data. Only 3 percent of the frauds and 8 percents of the abuses involved willful damage or destruction of equipment, software or data. Most of the fraud and abuses cases involved information -- manipulating it, creating it, and using it. THE FIVE MOST COMMON TECHNIQUES USED TO COMMIT COMPUTER-RELATED FRAUD AND ABUSE Computer-Related Fraud 1. Entering unauthorized information 2. Manipulating authorized input information 3. Manipulating or improperly using information files and records 4. Creating unauthorized files and records 5. Overriding internal controls Computer-Related Abuse 1. Stealing computer time, software, information, or equipment. 2. Entering unauthorized information 3. Creating unauthorized information fileas and records 4. Developing computer programs for nonwork purposes 5. Manipulating or improperly using computer processing These techniques are often used in combination and are identified in Computer-Related Fraud and Abuse in Goverment Agencies, Department of Health and Human Services, Office of Inspector General, 1983. Another way of looking at computer-related crime is to examine the types of crimes and abuses, and the methods used to commit them. These include: "Data Diddling" - Probably the most common method used to commit computer crime because it does not require sophisticated technical knowledge and is relatively safe. Information is changed at the time of input to the computer or during output. For example, at input, documents may be forged, valid disks exchanged, and data falsified. "Browsing" - Another common method of obtaining information which can lead to crime. Employees looking in others' files have discovered personal information about coworkers. Ways to gain access to computer files or alter them have been found in trash containers by persons looking for such information. Disks left on desks have been read, copied, and stolen. The very sophisticated browser may even be able to look for residual information left on the computer or on a storage media after the completion of a job. "Trojan Horse" - This method assumes that no one will notice that a computer program was altered to include another function before it was ever used. A computer program with a valid, useful function is written to contain additional hidden functions that exploit the security features of the system. "Trap Door" - This method relies on a hidden software or hardware mechanism that permits system protection methods to be circumvented. The mechanism is activated in some nonapperent manner. Sometimes the program is written so that a specific event, e.g., number of transactions processed or a certain calender date, will cause the unauthorized mechanism to function. "Salami Technique" - So named because this technique relies on taking slices so small that the whole is not obviously affected. This technique is usually accomplished by altering a computer program. For example, benefit payments may be rounded down a few cents and these funds, which can be considerable in the aggregate, diverted to a fraudulent acount. "Supperzapping" - Named after the program used in many computer centers which bypasses all system controls and is designed to be used in time of an emergency. Possession of this "master key" gives the holder opportunity to access, at any time, the computer and all of its information. Examples of Compuer-Related crimes, abuses, and waste include: - A payroll clerk, notified of a beneficiary's death, opened a bank account using the beneficiary's name and social security number. The beneficary was not removed from the computer eligibility lists, but a computer input form changed the address and the requested direct deposit of benefits to the payroll clerk's new bank acount. - A major loss occurred with the diversion of the goverment equipment. Fictitious requisitions were prepared for routine ordering at a major purchasing centor. The rquisitions directed shipment of communications equipment to legitimate private corporations holding goverment contracts. Just prior to the delivery date, one of the conspirators would call the corporation to alert them of their "error" and arrange "proper" delivery of the equipment to the conspirators. - Three data clerks, using a remote terminal, entered phony claims into the computer to recieve over $150,00 in benefits and then deleted records of these transactions to avoid being caught. - Thefts of information commonly involve selling either personnel information, contract negotiation information ( e.g., contract bids), and company proprietary information (e.g., product engineering information ) for outside commercial use, or copying or using software programs for personal or personal business use. CLUES The following clues can indicate information security vulnerabilities: 1. Security policies and practices are nonexistant or not followed. No one is assigned responsibility for information security. 2. Passwords are posted nest to computer terminals, written in obvoius places, shared with others, or appear on the computer screen when they are entered. 3. Remote terminals, microcomputers, and word processors are left on and unattended during work or nonwork hours. Data is displayed on unattended computer screens. 4. There are no restrictions on users of the information, or on the applications they can use. All users can access all information and use all trhe system functions. 5. There are no audit trails, and no logs are kept of who uses the computer for which operation. 6. Programming changes can be made without going through a review and approval process. 7. Documentation is nonexistant or inadequate to do any of the following: understand report definitions and calulations; modify programs; prepare data input; correct errors; evaluate system controls; and understand the data base itself -- its sources, records, layout, and data relationships. 8. Numerous attempts to log on are made with invalid passwords. In dialup systems -- those with telephone hookups -- hackers have programmed computers to do this "trial and error" guessing for them. 9. Input data is not subject to any verification or accuracy checks, or, when input data is checked: -- more data is rejected; -- more data adjustments are made to force reconciliation; or -- there is no record of rejected transactions. 10. There are excessive system crashes. 11. No reviews are made of computer information to determine the level of security needed. 12. Little attention is paid to information security. Even if an information policy exists, there is a prevailing view that it really is not needed. INFORMATION SECURITY CONTROLS 1. Control access to both computer information and computer applications. Ensure only authorized users have access. User Identification: Require users to log on to the computer as a means of initial identification. To effectively control a microcomputer, it may be most cost-effective to use it as a single user systems. Typically, a microcomputer has no log-on procedures; authority to use the system is granted by simply turning on the computer. User Authentication: Use nontransferable passwords, avoiding traceable personal data, to authenticate the identity of the users. Establish password management protection controls, and educate users to common problems. Other Controls: Passwords are one type of identification -- something users knows. Two other types of identification which are effective are somthing that a user has -- such as a magnetic coded card -- or distinguished user characteristic -- such as a voice print If the computer has a built in default password ( a password that comes built into the computer software and overrides access controls ) be sure it gets changed. Consider having the computer programmed so that when the user log on, they are told the last time of its use and the number of invalid log-on attempts since then. This makes the user an important part of the audit trail. Protect your Password - Don't share your password -- with anyone - Choose a password that is hard to guess - Hint: Mix letters and numbers, or select a famous saying and select every fourth letter. Better yet, let the computer generate your password. - Don't use a password that is your address, pet's name, nickname, spouse's name, telephone number or one that is obvious -- such as sequential numbers or letters. - Use longer passwords because they are more secure; six to eight characters are realistic - Be sure that your password is not visible on the computer screen when it is entered. - Be sure that your password does not appear on printouts - Do not tape passwords to desks, walls, or terminals. Commit yours to memory. <<---- Remember this!!! Manage Passwords Carefully - Change passwords periodically and on an irregular schedule - Encrypt or otherwise protect from unauthorized access the computer stored password file. - Assign password administration to the only most trusted officials. - Do not use a common password for everyone in an area. - Invalidate passwords when individuals leave the organization. - Have individuals sign for their passwords. - Establish and enforce password rules -- and be sure everyone knows them. Authorization Procedures: Develope authorization procedures that identify which users have access to which information and which applications -- and use appropriate controls. Establish procedures to require management approval to use computer resources, gain authorization to specific information and applications, and recieve a password. File Protection: In addition to user identification and authorization procedures, develope procedures to restrict access to data files: -- Use external file and internal file labels to identify the type of information contained and the required security levle; -- Restrict access to related areas that contain data files such as off-site backup facilities, on-site libraries, and off-line files; and -- Use software, hardware, and procedural controls to restrict access to on-line files to authorized users. System Precaution: -- Turn off idle terminals; -- Lock rooms where terminals are located; -- Position computer screens away from doorways, windows, and heavily tracked areas; -- Install security equipment, such as devices that limit the number of unsuccessful log-on attempts or dial-back would be users who use telephones to access the computer; -- Program the terminal to shut down after a specific time of non-use; and, -- If feasible, shut down the system during nonbusiness hours. ------ 2. Protect the integrity of information. Input information should be authorized, complete, accurate, and subject to error checks. Information Integrity: Verify information accuracy by using procedures that compare what was processed against what was supposed to have been processed. For example, controls can compare totals or check sequence numbers. Check input accuracy by installing checks on data validation and verification, such as: - Character checks that compare input characters against the expected type of character (e.g., numeric or alpha ); - Range checks that compare input data against predetermined upper and lower limits; - Relationship checks that compare input data to datat on a master record file; - Reasonableness checks that compare input data to an expected standard; and, - Transaction Limits that check input data against administratively set ceilings on specific transactions. Trace transactions through the system using transaction lines. Cross-check the contents of files by doing a record count, or by controlling the total. ----- 3. Protect System software. If software is shared, protect it from undetected modification by ensuring that policies, developemental controls and life cycle controls are in place, and that users are educated to security policies. Software developemental controls and policies should include procedures for changing, accepting and testing software prior to implementation. Policies should require management approval for software changes, limit who can make software changes, and address maintaining documentation. An inventory of software applications should be developed and maintained. Controls should be installed that prevent unauthorized persons from obtaining, altering, or adding, programs via remote terminals. ----- 4. Enhance the adequacy of security controls by involving ADP auditors in evaluating applications program controls and consulting them to determine needed tests and checks in handling sensitive data. Audit trails built into computer programs can both deter and detect computer fraud and abuse. Security audit trails should be available to track the identity of users who update sensitive information files. If the sensitivity of information stored on microcomputers requires audit trails, then both physical and access controls are essential. In a computer network, the host computer, not the terminal, is where the audit trails should be located. Audit trails should not be switched off to improve processing speed. Audit trail printouts should be reviewed regularly and frequently. ------ 5. Consder the need for communication security. Data transimitted over unprotected lines can be intercepted or passive eavesdropping can occur. N.I.A. - Ignorance, There's No Excuse. Founded By: Guardian Of Time/Judge Dredd. [OTHER WORLD BBS]