[iwar] [fc:Who's.hacked.off?]

From: Fred Cohen (fc@all.net)
Date: 2001-10-16 15:29:41


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Date: Tue, 16 Oct 2001 15:29:41 -0700 (PDT)
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Subject: [iwar] [fc:Who's.hacked.off?]
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Who's hacked off? 
By Michael Chissick,; Viv Nissanka, Internet Magazine, 10/16/2001
www.internetmag.com

Anyone can get hold of hacking tools these days. Michael Chissick and
Viv Nissanka assess the dangers for targeted companies. 
Hacking can not only cause chaos in the workplace but also be costly in
terms of liability for its victims. Direct losses might include the
costs of clearing up the computer system loss of business caused by
downtime consequences to consider too such as the damage to your
corporate reputation if say customer security is breached downstream
trading is affected or a highly destructive email virus is passed on to
customers. 
An employer might be liable if one of its staff sends someone an email
containing a virus. However it might be arguable that an employer is not
liable if this has been done in breach of its internet policy,
particularly if the message was personal. In this case the employee
might be held directly liable or be disciplined by the employer. 
At present there is no UK case law directly related to the transmission
of computer virus to third parties. Yet it's likely a Court would
consider failure to implement standard security measures, such as using
the latest software as negligent. The use of up to date virus scanning
software would at least demonstrate in a company's defence that care had
been taken to try to prevent such a situation. 
Where there is intentional infection of an internal or external computer
system caused by either a compute r virus or hacking a prosecution might
be feasible under the Computer Misuse Act 1998. 
Failure to implement security prevention measures could also violate
terms and conditions of existing insurance policies policyholders have
continuing obligations under the duty of at most good faith to disclose
any potential liability to it s insurer. An insurer is likely to refuse
to pay any potential negligence claims in the event of non-disclosure. 
Although compliance with the British Standard Code of practice for
information Security Management is not a statutory requirement, it is a
business-led approach that has been designed to tackle the issue of
information security and management. The Code outlines a set of best
practice controls for businesses to implement. But it has been argued
that the Code is Code is cumbersome. This could explain why, as yet only
40 businesses have successfully implemented it in full. 
Whether or not a company chooses to follow the code, it might be worth
considering implementing some of the following preventive measures to
minimise the risk of liability. 
* Implement an Internet and email security policy 
* Provide staff with the necessary training about security 
* Carry out effective security checks 
* Minimise potential routes of infection internally and externally (such
as prevent employees from downloading malicious attachments) 
* Scan all attachment and computer disks using the latest anti-virus
software before use 
* Ensure the regular backup of date. 
Businesses that haven't already done so should implement damage
limitation measures for themselves and for clients and contacts too. 
Michael Chissick is head of the IT and e-commerce group at City law firm
Field Fisher Waterhouse.

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