Prelim Handout COMPUTER WASTE AND MISTAKES - major causes of computer problems.

Computer Waste - involves inappropriate use of computer technology and resources Computer-Related Mistakes - refer to errors, failures and other computer problems that make computer output incorrect or not useful Types of Computer-Related Mistakes - Data-entry errors - Errors in computer programs - Mishandling of computer output - Inadequate planning for and control of equipment malfunctions - Inadequate planning for and control for electrical problems, humidity problems and other environmental difficulties Preventing Computer-Related Waste and Mistakes Ways to prevent computer-related waste - establish procedures regarding efficient disposal of systems and devices that are obsolete or no longer needed - establish policies for system acquisition and use - develop preventive policies such as follow: a) training programs for individuals and workgroups b) manuals and documents on how computer systems are to be used c) approval of certain systems and applications before they are implemented and used d) a requirement that documentation and description of certain applications be filed or submitted to a central office, including all cell formulas for spreadsheets and a description of all data elements and relationships in a database system COMPUTER CRIME - can be committed in the privacy of ones home with the right equipment and know-how - often difficult to detect, the amount stolen or diverted can be substantial, and the crime is clean and nonviolent - part of what makes computer crime so unique and hard to combat is its dual nature it can be both the tool used to commit crime and the object of that crime The Computer as the Tool to Commit Crime Two capabilities required to commit most computer crimes a) the criminal needs to know how to gain access to the computer system sometimes, this requires a knowledge of an identification number and a password, or the ability to generate fake or authentic codes

b) the criminal must know how to manipulate the system to produce the desired result

The Computer as the Object of the Crime - Illegal Access and Use Data Alteration and Deduction Data and Information Theft Equipment Theft Software Piracy International Computer Crime Illegal Access and Use Hacker - a person who enjoys computer technology and spends time learning and using computer systems Criminal Hacker - a computer-savvy person who attempts to gain unauthorized or illegal access to other computer systems - people who are looking for fun and excitement the challenge of beating the system Major Problems: - unauthorized access to computer systems and networks - tapping into and disabling communications systems - tapping voice and fax networks - gaining remote access to PBX - perpetrating voice-mail fraud Solutions: - creating network passwords - creating a network audit trail and auditing procedures - limiting physical access to networks - security training - a variety of data encryption devices for fax, private phone lines and other network and communications systems Data Alteration and Destruction Virus - a program that attaches itself to other programs Two kinds: a) Application Viruses b) System Virus Application Viruses - infect executable application files, including .EXE and .COM files and often add themselves to such applications as word-processing programs and spreadsheet packages System Virus - typically infects operating systems programs or other system files - usually infect the system as soon as the computer is started or booted

Worm - does not attach itself to other programs but acts as a free agent, placing copies of itself into other systems, destroying programs and interrupting the operation of networks and computer systems Logic Bomb - a program designed to explode or execute at a specified time and date - often disguised by Trojan horses Trojan Horses - a program that appears to be useful but actually masks the destructive program Data and Information Theft - data and information represent assets or goods that can also be stolen - done by individuals from outside organizations who illegally access systems or more often by insiders with the knowledge to locate, retrieve and take the right data Equipment Theft - happens with inadequate hardware acquisition policies, improper management, and blatant politics Software Piracy - the act of illegally duplicating software Pirates - illegal duplicators; people who have no qualms about using and copying software programs they have not paid for International Computer Crime Prevention: - require computer equipment and software registration appropriate authorities before if can be brought into a country Preventing Computer-Related Crime Three reasons why computer crime bills are not overly effective: a) companies do always actively try to detect computer crime b) security is inadequate c) convicted criminals are not seriously punished THE ETHICAL DIMENSION ETHICAL FOUNDATION Ethical Philosophies - people use them as guide in ethical decision-making Four Basic Ethical Philosophies a. Egoism - considers what is best for a given individual is right with

b. Natural Law - Humans should promote their own health and life, propagate, pursue knowledge of the world and God, pursue close relationships with other people and submit to legitimate authority. c. Utilitarianism - Those actions are right that produce the greatest good for the greatest number of people.

d. Respect for Persons - People should be treated as an end and not as a means to an end; and actions are right if everyone adopts the moral rule presupposed by the action. Ethical Values - more specific ethical concepts that people hold, and are heavily influenced by ones cultural background. Common Values a. Respect for human dignity b. Respect for basic rights c. Good citizenship Business Ethics Two separate areas: a. Concerns on the illegal, unethical or questionable practices of managers or organizations, their causes, and their possible remedies. b. Concerns with the numerous ethical questions that managers must confront as part of their daily business decision making. Theories on Corporate Social Responsibility a. Stockholder Theory - holds that managers are agents of the stockholders and their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices. b. Social Contract Theory - states that companies have ethical responsibilities to all members of society, which allow corporations to exist based on a social contract. - first condition of the contract: companies to enhance the economic satisfaction of consumers and employees - second condition: companies to avoid fraudulent practices, show respect for their employees as human beings, and avoid practices that systematically worsen the position of any group in society. c. Stakeholder Theory - maintains that managers have an ethical responsibility to manage a firm for the benefit of all of its stakeholders, which are all individuals and groups that have a stake in or claim on a company.

Four Ethical Issues (according to Mason) Privacy

Accuracy

information about ones self or ones associations that a person must reveal to others, under certain conditions, with certain safeguards things people keep to themselves and not be forced to reveal to others responsibility for the authenticity, fidelity and accuracy of information

Property Accessibility a person or an organizations right or privilege to obtain information, under certain conditions and safeguards owners of information just and fair prices for exchange of information

ETHICAL AND SOCIETAL DIMENSIONS OF IT IT and Employment - directly related to the use of computers to achieve automation - use of IT has created new jobs and increased productivity while also causing reduction in some types of job opportunities IT and Individuality - computer-based systems are criticized as impersonal systems that dehumanize and depersonalize activities that have been computerized, since they eliminate the human relationships present in non-computer systems IT and Working Conditions - IT has eliminated monotonous or obnoxious tasks in the office and the factory that formerly had to be performed by people - IT upgrades the quality of work because it can upgrade the quality of working conditions and the content of work activities