Learning Objectives
1. Identify several ethical issues in how the use of information technologies in business affects: employment, individuality, working conditions, privacy, crime, health, and solutions to societal problems 2. Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology 3. Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of information technology
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Case 1: Ethics, Moral Dilemmas, and Tough Decisions
The pervasive use of IT in organizations and society present individuals with new ethical challenges and dilemmas. If companies don¶t set ethical policies and guidelines, or don¶t make sure that employees know what they are and understand them, companies cannot hold workers accountable for their unethical behavior.
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Case Study Questions
1. Companies are developing ethical policies and guidelines for legal reasons, but also to clarify what is acceptable and what is not. Do you think any of the issues raised in the case required clarification? Would you take exception to any of them being classified as inappropriate behavior? Why do you think these things happen anyway? 2. In the first example (Bryan¶s), it is apparent that he did not believe justice had been ultimately served by the decision his company made. Should he have taken the issue to the authorities? Or, was it enough that he reported the problem through the proper channels and let the organization handle it, as was the recommendation of Linn Hynds? Provide a rationale for the position you are willing to take on this matter.
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Case Study Questions
3. In the case, Gary chose not to stop his boss from installing unlicensed software, although he refused to do it himself. If installing unlicensed software is wrong, is there any difference between refusing to do it versus not stopping somebody else? Do you buy his argument that it was not really going to hurt anybody? Why or why not?
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IT Security, Ethics, and Society
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IT Security, Ethics, and Society
Information technology has both beneficial and detrimental effects on society and people
± Manage work activities to minimize the detrimental effects of information technology ± Optimize the beneficial effects
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Business Ethics
Ethics questions that managers confront as part of their daily business decision making include
± Equity ± Rights ± Honesty ± Exercise of corporate power
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Categories of Ethical Business Issues
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Corporate Social Responsibility Theories
Stockholder Theory ± Managers are agents of the stockholders ± Their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices Social Contract Theory ± Companies have ethical responsibilities to all members of society, who allow corporations to exist Stakeholder Theory ± Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders ± Stakeholders are all individuals and groups that have a stake in, or claim on, a company
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Principles of Technology Ethics
Proportionality - The good achieved by the technology must outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk Informed Consent - Those affected by the technology should understand and accept the risks Justice ± The benefits and burdens of the technology should be distributed fairly ± Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk Minimized Risk - Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk 13-11
AITP Standards of Professional Conduct
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Responsible Professional Guidelines
A responsible professional
± Acts with integrity ± Increases personal competence ± Sets high standards of personal performance ± Accepts responsibility for his/her work ± Advances the health, privacy, and general welfare of the public
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Computer Crime
Computer crime includes
± Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources ± The unauthorized release of information ± The unauthorized copying of software ± Denying an end user access to his/her own hardware, software, data, or network resources ± Using or conspiring to use computer or network resources illegally to obtain information or tangible property
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Hacking
Hacking is
± The obsessive use of computers ± The unauthorized access and use of networked computer systems
Electronic Breaking and Entering
± Hacking into a computer system and reading files, but neither stealing nor damaging anything
Cracker
± A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage
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Common Hacking Tactics
Denial of Service
± Hammering a website¶s equipment with too many requests for information ± Clogging the system, slowing performance, or crashing the site
Scans
± Widespread probes of the Internet to determine types of computers, services, and connections ± Looking for weaknesses
Sniffer
± Programs that search individual packets of data as they pass through the Internet ± Capturing passwords or entire contents
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Common Hacking Tactics
Spoofing - Faking an e-mail address or Web page to trick
users into passing along critical information like passwords or credit card numbers Trojan House - A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software Back Doors - A hidden point of entry to be used in case the original entry point is detected or blocked Malicious Applets - Tiny Java programs that misuse your computer¶s resources, modify files on the hard disk, send fake email, or steal passwords
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Common Hacking Tactics
War Dialing - Programs that automatically dial thousands of
telephone numbers in search of a way in through a modem connection Logic Bombs - An instruction in a computer program that triggers a malicious act Buffer Overflow - Crashing or gaining control of a computer by sending too much data to buffer memory Password Crackers - Software that can guess passwords Social Engineering - Gaining access to computer systems by talking unsuspecting company employees out of valuable information, such as passwords Dumpster Diving - Sifting through a company¶s garbage to find information to help break into their computers
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Cyber Theft
Many computer crimes involve the theft of money The majority are ³inside jobs´ that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved Many attacks occur through the Internet Most companies don¶t reveal that they have been targets or victims of cybercrime
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Unauthorized Use at Work
Unauthorized use of computer systems and networks is time and resource theft
± Doing private consulting ± Doing personal finances ± Playing video games ± Unauthorized use of the Internet or company networks
Sniffers
± Used to monitor network traffic or capacity ± Find evidence of improper use
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Internet Abuses in the Workplace
± ± ± ± ± ± ± ± ± ± ± General email abuses Unauthorized usage and access Copyright infringement/plagiarism Newsgroup postings Transmission of confidential data Pornography Hacking Non-work-related download/upload Leisure use of the Internet Use of external ISPs Moonlighting
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Licensing
± Purchasing software is really a payment for a license for fair use ± Site license allows a certain number of copies
A third of the software industry¶s revenues are lost to piracy
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Theft of Intellectual Property
Intellectual Property
± Copyrighted material ± Includes such things as music, videos, images, articles, books, and software
Copyright Infringement is Illegal
± Peer-to-peer networking techniques have made it easy to trade pirated intellectual property
Publishers Offer Inexpensive Online Music
± Illegal downloading of music and video is down and continues to drop
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Viruses and Worms
A virus is a program that cannot work without being inserted into another program
± A worm can run unaided
These programs copy annoying or destructive routines into networked computers
± Copy routines spread the virus
Commonly transmitted through
± ± ± ± The Internet and online services Email and file attachments Disks from contaminated computers Shareware
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Top Five Virus Families of all Time
My Doom, 2004
± Spread via email and over Kazaa file-sharing network ± Installs a back door on infected computers ± Infected email poses as returned message or one that can¶t be opened correctly, urging recipient to click on attachment ± Opens up TCP ports that stay open even after termination of the worm ± Upon execution, a copy of Notepad is opened, filled with nonsense characters
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Top Five Virus Families of all Time
Netsky, 2004
± Mass-mailing worm that spreads by emailing itself to all email addresses found on infected computers ± Tries to spread via peer-to-peer file sharing by copying itself into the shared folder ± It renames itself to pose as one of 26 other common files along the way
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Top Five Virus Families of all Time
SoBig, 2004
± Mass-mailing email worm that arrives as an attachment
Examples: Movie_0074.mpg.pif, Document003.pif
± Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking for email addresses to which it can send itself ± Also attempts to download updates for itself
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Top Five Virus Families of all Time
Klez, 2002
± A mass-mailing email worm that arrives with a randomly named attachment ± Exploits a known vulnerability in MS Outlook to auto-execute on unpatched clients ± Tries to disable virus scanners and then copy itself to all local and networked drives with a random file name ± Deletes all files on the infected machine and any mapped network drives on the 13th of all even-numbered months
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Top Five Virus Families of all Time
Sasser, 2004
± Exploits a Microsoft vulnerability to spread from computer to computer with no user intervention ± Spawns multiple threads that scan local subnets for vulnerabilities
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The Cost of Viruses, Trojans, Worms
Cost of the top five virus families
± Nearly 115 million computers in 200 countries were infected in 2004 ± Up to 11 million computers are believed to be permanently infected ± In 2004, total economic damage from virus proliferation was $166 to $202 billion ± Average damage per computer is between $277 and $366
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Adware and Spyware
Adware
± Software that purports to serve a useful purpose, and often does ± Allows advertisers to display pop-up and banner ads without the consent of the computer users
Spyware
± Adware that uses an Internet connection in the background, without the user¶s permission or knowledge ± Captures information about the user and sends it over the Internet
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Spyware Problems
Spyware can steal private information and also
± ± ± ± Add advertising links to Web pages Redirect affiliate payments Change a users home page and search settings Make a modem randomly call premium-rate phone numbers ± Leave security holes that let Trojans in ± Degrade system performance
Removal programs are often not completely successful in eliminating spyware
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Privacy Issues
The power of information technology to store and retrieve information can have a negative effect on every individual¶s right to privacy
± Personal information is collected with every visit to a Web site ± Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused
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Opt-in Versus Opt-out
Opt-In
± You explicitly consent to allow data to be compiled about you ± This is the default in Europe
Opt-Out
± Data can be compiled about you unless you specifically request it not be ± This is the default in the U.S.
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Privacy Issues
Violation of Privacy
± Accessing individuals¶ private email conversations and computer records ± Collecting and sharing information about individuals gained from their visits to Internet websites
Computer Monitoring
± Always knowing where a person is Mobile and paging services are becoming more closely associated with people than with places
Computer Matching
± Using customer information gained from many sources to market additional business services
Unauthorized Access of Personal Files
± Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles
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Protecting Your Privacy on the Internet
There are multiple ways to protect your privacy
± Encrypt e-mail ± Send newsgroup postings through anonymous remailers ± Ask your ISP not to sell your name and information to mailing list providers and other marketers ± Don¶t reveal personal data and interests on online service and website user profiles
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Privacy Laws
Electronic Communications Privacy Act and Computer Fraud and Abuse Act
± Prohibit intercepting data communications messages, stealing or destroying data, or trespassing in federal-related computer systems
U.S. Computer Matching and Privacy Act
± Regulates the matching of data held in federal agency files to verify eligibility for federal programs
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Privacy Laws (cont¶d)
Other laws impacting privacy and how much a company spends on compliance
± Sarbanes-Oxley ± Health Insurance Portability and Accountability Act (HIPAA) ± Gramm-Leach-Bliley ± USA Patriot Act ± California Security Breach Law ± Securities and Exchange Commission rule 17a-4
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Computer Libel and Censorship
The opposite side of the privacy debate«
± Freedom of information, speech, and press
Biggest battlegrounds
± Bulletin boards ± Email boxes ± Online files of Internet and public networks
Weapons used in this battle
± ± ± ± Spamming Flame mail Libel laws Censorship
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Computer Libel and Censorship
Spamming
± Indiscriminate sending of unsolicited email messages to many Internet users
Flaming
± Sending extremely critical, derogatory, and often vulgar email messages or newsgroup posting to other users on the Internet or online services ± Especially prevalent on special-interest newsgroups
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Cyberlaw
Laws intended to regulate activities over the Internet or via electronic communication devices
± Encompasses a wide variety of legal and political issues ± Includes intellectual property, privacy, freedom of expression, and jurisdiction
The intersection of technology and the law is controversial
± Some feel the Internet should not be regulated ± Encryption and cryptography make traditional form of regulation difficult ± The Internet treats censorship as damage and simply routes around it
Cyberlaw only began to emerge in 1996
± Debate continues regarding the applicability of legal principles derived from issues that had nothing to do with cyberspace
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Other Challenges
Employment
± IT creates new jobs and increases productivity ± It can also cause significant reductions in job opportunities, as well as requiring new job skills
Computer Monitoring
± Using computers to monitor the productivity and behavior of employees as they work ± Criticized as unethical because it monitors individuals, not just work, and is done constantly ± Criticized as invasion of privacy because many employees do not know they are being monitored
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Other Challenges
Working Conditions
± IT has eliminated monotonous or obnoxious tasks ± However, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles
Individuality Dehumanizes and depersonalizes activities because computers eliminate human relationships
± Inflexible systems
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Health Issues
Cumulative Trauma Disorders (CTDs)
± Disorders suffered by people who sit at a PC or terminal and do fast-paced repetitive keystroke jobs
Carpal Tunnel Syndrome
± Painful, crippling ailment of the hand and wrist ± Typically requires surgery to cure
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Ergonomics
Designing healthy work environments
± Safe, comfortable, and pleasant for people to work in ± Increases employee morale and productivity ± Also called human factors engineering
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Ergonomics Factors
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Societal Solutions
Using information technologies to solve human and social problems
± Medical diagnosis ± Computer-assisted instruction ± Governmental program planning ± Environmental quality control ± Law enforcement ± Job placement
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Societal Solutions
The detrimental effects of information technology
± Often caused by individuals or organizations not accepting ethical responsibility for their actions
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Security Management of IT
The Internet was developed for interoperability, not impenetrability
± Business managers and professionals alike are responsible for the security, quality, and performance of business information systems ± Hardware, software, networks, and data resources must be protected by a variety of security measures
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Case 2: Raymond James Financial, BCD Travel, Houston Texans, and Others
For companies like Raymond James, leakage of sensitive customer data or proprietary information is a new priority. Companies are starting to focus on keeping sensitive information within their boundaries. Companies are deploying Outbound content management tools to monitor outgoing information. Companies not only have to monitor e-mail messages, but also the explosion of alternative communication mechanisms that employees are using, including instant messaging, blogs, FTP transfers, Web mail, and message boards.
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Case Study Questions
1. Barring illegal activities, why do you think that employees in the organizations featured in the case do not realize themselves the dangers of loosely managing proprietary and sensitive information? Would you have thought of these issues? 2. How should organizations strike the right balance between monitoring and invading their employees¶ privacy, even if it would be legal for them to do so? Why is it important that companies achieve this balance? What would be the consequences of being too biased to one side? 3. The IT executives in the case all note that outbound monitoring and management technologies are only part of an overall strategy, and not their primary defense. What should be the other components of this strategy? Which weight would you give to human and technological factors? Why?
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Security Management
The goal of security management is the accuracy, integrity, and safety of all information system processes and resources
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Internetworked Security Defenses
Encryption
± Data is transmitted in scrambled form ± It is unscrambled by computer systems for authorized users only ± The most widely used method uses a pair of public and private keys unique to each individual
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Public/Private Key Encryption
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Internetworked Security Defenses
Firewalls
± A gatekeeper system that protects a company¶s intranets and other computer networks from intrusion ± Provides a filter and safe transfer point for access to/from the Internet and other networks ± Important for individuals who connect to the Internet with DSL or cable modems ± Can deter hacking, but cannot prevent it
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Internet and Intranet Firewalls
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Denial of Service Attacks
Denial of service attacks depend on three layers of networked computer systems
± The victim¶s website ± The victim¶s Internet service provider ± Zombie or slave computers that have been commandeered by the cybercriminals
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Defending Against Denial of Service
At Zombie Machines
± Set and enforce security policies ± Scan for vulnerabilities
At the ISP
± Monitor and block traffic spikes
At the Victim¶s Website
± Create backup servers and network connections
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Internetworked Security Defenses
Email Monitoring
± Use of content monitoring software that scans for troublesome words that might compromise corporate security
Virus Defenses
± Centralize the updating and distribution of antivirus software ± Use a security suite that integrates virus protection with firewalls, Web security, and content blocking features
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Other Security Measures
Security Codes
± Multilevel password system ± Encrypted passwords ± Smart cards with microprocessors
Backup Files
± Duplicate files of data or programs
Security Monitors
± Monitor the use of computers and networks ± Protects them from unauthorized use, fraud, and destruction
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Other Security Measures
Biometrics
± Computer devices measure physical traits that make each individual unique
Voice recognition, fingerprints, retina scan
Computer Failure Controls
± Prevents computer failures or minimizes its effects ± Preventive maintenance ± Arrange backups with a disaster recovery organization
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Other Security Measures
In the event of a system failure, faulttolerant systems have redundant processors, peripherals, and software that provide
± Fail-over capability: shifts to back up components ± Fail-save capability: the system continues to operate at the same level ± Fail-soft capability: the system continues to operate at a reduced but acceptable level
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Other Security Measures
A disaster recovery plan contains formalized procedures to follow in the event of a disaster
± Which employees will participate ± What their duties will be ± What hardware, software, and facilities will be used ± Priority of applications that will be processed ± Use of alternative facilities ± Offsite storage of databases
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Information System Controls
Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities
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Auditing IT Security
IT Security Audits
± Performed by internal or external auditors ± Review and evaluation of security measures and management policies ± Goal is to ensure that that proper and adequate measures and policies are in place
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Protecting Yourself from Cybercrime
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Case 3: Cyberscams and Cybercriminals
Cyberscams are today¶s fastest-growing criminal niche
± 87 percent of companies surveyed reported a security incident ± The U.S. Federal Trade Commission says identity theft is its top complaint ± eBay has 60 people combating fraud; Microsoft has 65 ± Stolen credit card account numbers are regularly sold online
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Case Study Questions
1. List several reasons ³cyber scams are today¶s fastest growing criminal niche.´ Explain why the reasons you give contribute to the growth of cyber scams. 2. What are several security measures that could be implemented to combat the spread of cyber scams? Explain why your suggestions would be effective. 3. Which of the four top cyber criminals described in this case poses the biggest threat to businesses? To consumers? Explain the reasons for your choices, and describe how businesses and consumers can protect themselves from these cyber scammers.
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Case 4: Lowe¶s, TCI, Bank of America, ChoicePoint, and Others
Security Breach Headlines
± Identity thieves stole information on 145,000 people from ChoicePoint ± Bank of America lost backup tapes that held data on over 1 million credit card holders ± DSW had its stores¶ credit card data breached; over 1 million had been accessed
Corporate America is finally owning up to a long-held secret
± It can¶t safeguard its most valuable data
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Case Study Questions
1. Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies? 2. What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources like the incident at Lowe¶s? 3. What security safeguards would have deterred the loss of customer data at TCI, Bank of America, and ChoicePoint? Defend your proposed security measures to avoid the incidents that occurred at each company.
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