Computer Security in Malaysia

Dr. Wayne C. Summers

Associate Professor - Computer Science

ITM-Pusat Pendidikan Persediaan / MUCIA - Indiana University

Section 17, 40200, Shah Alam, Selangor, Malaysia

phone/fax: (03) 541-5846

INTERNET: wayne@cs.itm.my

Abstract: The use of computer systems has improved our lives today. They have increased our efficiency of doing work. We are now more productive, but at a cost. We have become dependent on these same computer systems in our daily lives and for doing business. Coupled with this is a lack of awareness of how vulnerable our data, software and hardware are. This paper discusses the problems associated with maintaining a secure computer system as well as proposing some solutions to overcoming these problems. This paper also summarizes the results of a series of surveys conducted in Malaysia by the author. The surveys were used to determine the status of computer security in Malaysia and provide a foundation for suggesting some solutions to problems that are existent in Malaysian computer security.

Introduction

"17,712 bank fraud cases since 1986" [8]

"Police warn of 'computer hackers' infiltrating CDS" [5]

"Computer virus to hit next month - it will wipe out all hard disks every day of March" [4]

"Many users still ignore rampant virus threat" [6]

"Blackout creates havoc for IT users" [1]

"Subang Airport fire: A lesson for IT users" [3]

These are some headlines from recent Malaysian newspapers. Has your company taken precautions to keep out hackers? Are you ready for the next big virus attack? Can your business survive a lengthy power outage? Could your company recover from a major fire? These are some questions that you may be facing in the future.

Information is the lifeblood of every company. We have become increasingly dependent on our computer systems for processing this information. Not only must we protect this information but we must also protect the computer systems that process this information. There is a myriad of threats to the security of our information and computer systems. Most computer users take the computer system and the information it holds for granted. They turn off their computers without giving any thought to the security of the information.

Is there a security problem in computing?

Computer Crime

One serious problem facing computer users today is the rise in computer crime, i.e. crime committed with a computer. Computer fraud in the U.S. alone exceeds $3 billion each year. Computer fraud in the U.K. exceeds 2.5 billion pounds each year. There was a total of 17,712 cases of bank fraud involving 124.13 million ringgit in Malaysia between 1986 and 1992[8]. The total estimated losses due to computer crime worldwide range from $300 million to $500 billion per year. The reason for such a wide range is that less than 1% of all computer crime fraud cases are detected and of those detected, over 90% are unreported. Is it any wonder that computer-related crime has been escalating at a dramatic rate? Computer crime is almost inevitable in any organization unless adequate protections are put in place.

Figure 1

In recent surveys conducted in Malaysia by the author [Appendix A], less than 8% of those surveyed had been victims of a computer crime [Figure 1]. Unfortunately these 8% may be among the 1% detected. How many others "got away with it?" Of those nine instances of a computer crime, over 50% went unreported to the authorities and only one individual was reported to have lost their job.

Crimes using computers are easy to commit, hard to detect and even harder to prove. If someone steals your computer, you know it and may even have evidence. If someone steals your data, how do you know it and where's your proof. As will be discussed throughout this paper, one major problem is a lack of awareness. Few individuals and companies are aware of the extent of computer crime committed today.

Figure 2

Computer Viruses

Computer viruses are a leading threat to secure computing. There are over 3000 computer viruses and strains with several new ones developed every day. Over eight million PCs have been hit by viruses by 1992 with 90% of those infected being reinfected within a short period. Over 90% of those surveyed in Malaysia have experienced a computer virus infection [Figure 2]. Almost 74% of those had at least five infections [Figure 3]. It's also possible that some of those who claim to have not been infected by viruses, may have not known how to recognize an infection.

Figure 3

Fortunately in Malaysia, the number of virulent viruses is probably less than 100. Most of these are relatively harmless. One reasons for so many occurrences of viruses both here and elsewhere is the widespread copying of software. Stop the illegal copying and use of illegal software and the spread of viruses would diminish greatly.

Natural Disasters

Malaysia has the fortune to not suffer from many natural disasters, but there are some. For example, within seven months last year the Subang International Airport suffered two fires. The fire in April at Subang International Airport knocked out the computers controlling the flight display system. A post office near the DCA computer room was also affected by the soot that decommissioned the post office counter terminals. The computers were not burnt but crashed because soot entered the hard disks. The fire in October damaged newly installed computer equipment worth 400,000 ringgit as well as 7 million ringgit worth of equipment in the air traffic control tower[3].

Power outages are a regular occurrence here culminating in the major blackout in September 1992. The blackout crippled port operations when the Port Klang Authority's computer network went blank[1]. Almost 25% of those surveyed reported downtime due to a "natural disaster." [Figure 4] Most of these were a result of power outages and hard disk crashes.

Figure 4

"Unplanned computer downtime" costs Corporate America US$4 billion a year. An average U.S. company suffers nine four-hour computer crashes a year, which each cost US$330,000.

Negligence

Over 85% of the destruction of valuable computer data involves inadvertent acts. This includes accidents, errors and omissions by employees. This would typically include accidental erasure of files or entire disks. Often employees may inadvertently alter files beyond recovery.

HOW MUCH SECURITY IS ENOUGH?

Computer Security

What is computer security? It can be thought of as the protection of the computer and its resources against accidental or intentional disclosure of confidential data, unlawful modification of data or programs, the destruction of data, software or hardware. It includes the denial of use of one's computer facilities for criminal activities including computer related fraud and blackmail. Computer security involves the elimination of weaknesses or vulnerabilities that might be exploited to cause loss or harm. How can we minimize the vulnerabilities in our computer system?

A computerized system for processing information is composed of five major components: hardware, software, data, people and procedures. We need effective controls for all five components that will reduce the system's vulnerabilities.

Data

Data is the most important of the five components. It is the life-blood of the company. The easiest way to protect the data is to hide it from prying eyes. One way of doing this is by encryption. Encryption uses an algorithm that hides the meaning of the text[Fig. 5].

plaintext ______ ciphertext ________ original

----------------> |_______| -------------->|________| ----------->

plaintext

Figure 5

A good cryptographic algorithm should be simple to use by authorized users but difficult and time consuming for non-authorized users to decrypt. The security of the data should not depend on the secrecy of the algorithm. The efficiency and security of the algorithm should not be data dependent. More programs are appearing that include and support encryption. Less than 40% of those surveyed [Appendix A - Question 17] use encryption to hide their data.

Software

Software can be easily corrupted by computer viruses. Computer viruses typically infect executable programs, boot sectors and partition tables of hard disks. Two major approaches can be used to minimize the danger of infection.

One approach is to scan for viruses. this won't stop the infection, but it will notify you if an infection has occurred so that you can remove it. To be effective, scanning must be done any time new software is introduced into a computer system. The scanner must also be able to identify all known viruses as well as viruses that were not released when the scanner was designed. Most of those individuals surveyed are using some type of scanner [Appendix A - Question 8] but nearly a third seldom use it.

Another approach is to use a TSR (Terminate and Stay Resident) program that will monitor for attempts by viruses to infect your system. The disadvantage of a TSR is that it might give a false alarm if a legitimate program tries to do something similar in characteristic to a virus's action. Malaysia is fortunate that there are three excellent local products (V-buster, PC-Medic and Armour) which have both scanners and TSR programs. The advantage of a local product is that the development team should have access to viruses that are creating the most havoc locally and design the anti-virus program for that. There are also many imported scanners and TSR programs. Many users are using more than one product to combat viruses.

The next level of software protection are the Access Control Systems. ACS's lets you selectively restrict access to files, directories, floppy disk drives, and even external ports. Many systems can also track program use through logging and audit trails. ACS's should also include encryption facilities. Some ACS's can also make the hard disk drive "inaccessible" on a boot from a floppy. Some examples of Access Control Systems include Watchdog, PC-FORT( which is a well written program by a team of Malaysians), DiskLock, and PC/DACS.

ACS's won't prevent an experienced programmer from looking at the raw disk sectors. Most ACS's also won't prevent a user from doing a low-level format from a floppy disk drive.

Access Control Systems usually include some type of password protection to control access to different parts of the computer system. These provide a very important line of defense. Passwords are easy to use but also easy to misuse. Many computer users either select passwords that are not only easy to remember but also easy to guess by an intruder. Other users select a password that is so hard to remember that they have to write it down where the intruder can find it.

Some rules of thumb for passwords include selecting a password that is over five characters long containing upper and lowercase letters, digits and punctuation characters if possible. Pick a password that can be easily memorized but not easily guessed. Don't share it with everyone. Passwords can accidently be divulged over time, so they should be changed periodically. Many application packages also have password protection options for the data files, but few individuals are using them.

Hardware

How valuable is your computer, your printer, your monitor, etc.? You could bolt it to the desks like a quarter of those surveyed [Appendix A - Question 23]. You could put in a limited access room like 60% of those surveyed [Appendix A - Question 25]. Computers are very sensitive electrical devices and need to be protected from electrical surges. Surprisingly, 28% of those surveyed [Appendix A - Question 26] do not use voltage regulators or surge protectors. With the frequent fluctuations of current in Malaysia, which is a gamble you're sure to lose on.

If you cannot afford to have your computers or network going down unexpectedly, then you should invest in a UPS (Uninterruptible Power Supply). 60% of those surveyed [Appendix A - Question 27] use UPSs.

People and Procedures

Computers do not commit crimes and computers do not write computer viruses. Most of the problems associated with computer security are people problems. These problems can generally be solved with appropriate procedures. Establish a computer security policy and educate the users about the procedures they are expected to follow. A good computer security program involves everyone in the organization from senior management down. Over 50% of those surveyed [Appendix A - Question 14] state that their company has no computer security policy. It is important that computer users understand the issues of computer security, computer ethics as well as the legal issues involved in using a computer.

5 Figure 6

Procedures must be developed for using secure computing systems. Users must not leave PCs unattended without securing both the PC and any storage media. Printers should not be left unattended when printing confidential information. Secure all software and hardware with passwords and if possible lock and key. It is ironic that 75% of those surveyed [Figure 6] lock up their office supplies while over 50% [Figure 7 & 8] leave their software and data unsecured at night. Are paper clips and pencils more important than our data?

6 Figure 7

7 Figure 8

Do not allow eating, drinking and smoking near the computers. Computer personnel in mainframe and minicomputer environments recognized early the importance and necessity of placing the computer and storage media in a clean environment. Unfortunately, this concern is lost when we move to PCs and networks.

8 Figure 9

Backup

One most important procedure to establish is the one of backup. Data and software can be lost due to a virus attack, sabotage or by negligence. It is necessary to have current backups to recover from the loss. Where should those backups be kept? Although most of those surveyed [Figure 9] made regular backups, over 40% keep the backups on site with the computer. If a disaster were to suddenly strike the computing facility, not only is the computer and original data lost, but so is the backup. Mainframe computer personnel have procedures for keeping two generations of backups. The first is kept on site while the second generation of backups is kept in another building preferably far away.

9 Figure 10

Contingency Planning

How long can you survive without your computers? Studies have shown that over 90% of the companies that suffered a "catastrophic loss" in their computer systems never recover. You must plan for the unlikely. Unfortunately, of those surveyed [Figure 10], less than 40% have a disaster recovery plan.

Malaysia is very fortunate in having two facilities available for disaster recovery. One is the Computer Recovery Facility in Kelana Jaya while the other is the Computer Recovery Center in Petaling Jaya. Both companies provide security facility for storing off-site backups. In addition both companies provide both "cold site" (Shell) and "hot site" facilities. The cold site provides power/cooling and should be up and running within a week. The hot site is a complete hardware facility and only requires that the software and backups be installed before you can start operating.

An alternative to these facilities is to have your own hot or cold site where all processing is mirrored so that you can recover immediately from a disaster. Some companies will even share facilities. Of course the disadvantage is cost. But then, how dependent are you on your computer systems? Computer security does not come cheap.

RECOMMENDATIONS

Here are some final recommendations. Keep the hardware, software and data in a secure place. Don't leave your PC unattended. If you are in a network environment, log off before leaving your computer or terminal. Protect your software with some type of anti-virus software. Invest in an access control system. This will provide you with password protection for your files and devices. Access control systems can also keep track of who is doing what on your computer system. Protect your data using encryption. That way if some one does break into your system, your data is still secure.

Design a security plan and define policies to be followed by all computer users. Educate employees about legal and ethical issues involving the use of computers. Do not allow anyone to use their own software on the company computers, especially pirated software. Do not allow any one to remove software or data from the workplace. Educate all computer users about the importance of computer security.

Create a security planning team with 5-9 members. These should include members from the computer hardware group, data entry personnel, systems programmers, application programmers, physical security personnel and representative users. Make sure that senior management is involved in setting this up and are supportive of this group's efforts. If senior level management does not see the importance of computer security, all may be lost.

When designing a security plan, consider the following:

- specify goals regarding security

- specify where responsibility for security lies

- specify the organization's commitment to security

- identify current security status

- make recommendations

- identify responsibilities for implementation

- draw up a timetable

- provide continuing attention to security

- involve senior level management.

FUTURE OF COMPUTER SECURITY IN MALAYSIA

Computers are becoming more secure in Malaysia. Through conferences and seminars like NCIT, there is an increased awareness that computer security is important. Both the private sector and the government frequently offer programs on computer security. There is currently an organization, MITSA - Malaysian Information Technology Security Association being registered which has as one of its goals to educate computer users and industry about the issues involving computer security.

New laws are being established to combat computer crime. In August, the Malaysian Law Minister, Datuk Syed Hamid Albar tabled a Penal Code Amendment Bill that increases the penalties for white-collar crime including computer crime. Most importantly is that the Bill expands the definition of the word "document" to include data stored magnetically. This will now make stealing data easier to prosecute.

More companies are taking advantage of disaster recovery facilities. Some are setting up their own while other companies are making use of the two in existence. Bank Negara is insisting that all financial institutions make use of disaster recovery facilities. They also require that the disaster recovery plan and facility be tested frequently. This is important. Each company needs to educate its employees on what to do in an emergency.

These developments and new ones on the horizon will hopefully make our computing more productive and safer. Keep your computer system secure and practice safe computing.

References

1. CompuTimes, New Straits Times newspaper, "Blackout creates havoc for IT users," Malaysia, October 5, 1992, pg. 1.

2. Fites, Philip E., Kratz, Martin P.J. and Brebner, Alan F., Control and Security of Computer Information Systems, Computer Science Press, Rockville (MD), 1989.

3. IT Asia, "Subang Airport fire: A lesson for IT users," November, 1992.

4. Malay Mail newspaper, "Computer virus to hit next month - it will wipe out all hard disks every day of March," Malaysia, February 24, 1993.

5. New Straits Times newspaper, "Police warn of 'computer hackers' infiltrating CDS," Malaysia, May 26, 1993, pg. 4.

6. PC Week Asia, "Many users still ignore rampant virus threat," May 8-21.

7. Pfeeger, Charles P., Security in Computing, Prentice- Hall, Englewood Cliffs (NJ), 1989.

8. Star newspaper, "17,712 bank fraud cases since 1986," Malaysia, September 8, 1992.

9. Stoll, Cliff, The Cuckoo's Egg: Tracing a Spy Through the Maze of Computer Espionage, Doubleday, New York (NY), 1989.

10. Summers, Wayne C. seminar notes for "Computer Security, Computer Crime and Combatting Computer Viruses," April 1993.

11. Summers, Wayne, Zaidah Ibrahim and Naimah Mohd. Hussin, COMPUTER VIRUSES: What They Are and How to Prevent Them, Federal Publications, Malaysia, 1993.

Appendix A

COMPUTER SECURITY IN MALAYSIA

Location: INTAN EXCELL EXCELL MCCE MCCE PC‑Fort Totals

K.L. K.L. Penang K.L. Sabah Launch

Date: 8/1992 4/ 1993 4/1993 4/ 1993 8/ 1993 5/1993

# of respondees: 55 11 8 6 23 26 129

1. Type of Company:

Gov't/Semi‑Gov't 43 1 2 1 6 53 41.09%

Education 9 3 22 5 39 30.23%

Banking 1 2 8 11 8.53%

Computer Related 1 2 1 1 5 3.88%

Oil 1 1 0.78%

Manufacturing 5 7 12 9.30%

Trading 3 3 2.33%

Services 1 4 5 3.88%

2. Number of Employees:

1‑10 3 2 5 3.40%

11‑99 12 3 2 12 10 39 26.53%

100‑999 22 7 6 3 9 7 54 36.73%

>1000 18 1 22 8 49 33.33%

3. Number of Computers:

1‑10 7 1 2 12 2 24 19.35%

11‑99 27 3 8 3 9 14 64 51.61%

100‑999 15 5 6 26 20.97%

>1000 4 2 4 10 8.06%

4. Type of Computers:

PCs 55 11 7 6 23 25 127 98.45%

minicomputer 24 10 2 1 13 50 38.76%

mainframe 33 4 1 10 48 37.21%

network 19 8 6 18 51 39.53%

5. Have you experienced a computer virus infection?

yes 45 11 8 6 19 23 112 90.32%

no 10 0 0 0 2 0 12 9.68%

5a. If yes how many times?

once 2 1 4 3 10 8.77%

2‑5 times 5 3 2 4 6 20 17.54%

>5 times 38 8 7 4 13 14 84 73.68%

6. Is there an individual to contact in case of a computer infection?

yes 35 9 6 1 8 20 79 61.24%

no 16 2 2 5 13 6 44 34.11%

7. Do you use a TSR to monitor for computer virus infections?

yes 19 6 4 3 4 15 51 39.53%

no 24 4 4 2 12 11 57 44.19%

8. What type of antivirus program are you using?

Vbuster 11 1 6 2 20 15.50%

Scan 36 4 5 4 14 16 79 61.24%

CPAV 23 4 2 2 2 14 47 36.43%

NAV 8 4 1 1 2 3 19 14.73%

Dr. Solomon 6 1 1 8 6.20%

TNT 11 2 1 3 1 18 13.95%

UTipac 1 2 4 7 5.43%

Pc‑cillin 17 5 2 2 10 36 27.91%

PC‑Medic 5 5 3.88%

Armour 1 5 6 4.65%

Serum 1 1 0.78%

Lan Protect 1 1 0.78%

None 3 3 2.33%

9. How often do you scan for viruses?

daily 24 5 4 2 15 50 38.76%

weekly 13 3 4 3 5 3 31 24.03%

monthly 2 3 1 6 4.65%

seldom 14 4 1 10 6 35 27.13%

never 1 1 3 5 3.88%

10. Has your computer system suffered downtime due to a natural disaster?

yes 11 3 1 2 4 6 27 24.55%

no 31 8 7 4 16 17 83 75.45%

11. How often do you make backups?

daily 16 7 7 2 1 12 45 34.88%

weekly 25 7 2 1 4 8 47 36.43%

monthly 6 4 1 1 5 2 19 14.73%

quarterly 2 2 1 1 6 4.65%

yearly 1 1 2 1 3 8 6.20%

seldom 3 4 7 5.43%

never 5 5 10 7.75%

11a. Are these backups kept off site?

yes 28 7 3 4 10 18 70 59.32%

no 20 4 8 2 6 8 48 40.68%

12. Does your company have a disaster recovery plan?

yes 19 7 1 0 2 17 46 37.40%

no 31 4 7 6 21 8 77 62.60%

13. Does your company have a security evaluation team?

yes 18 6 1 1 2 16 44 35.20%

no 34 5 7 5 21 9 81 64.80%

14. Does your company have a computer security policy?

yes 20 10 2 2 2 19 55 45.83%

no 28 1 6 4 20 6 65 54.17%

15. Does your company educate your employees about the importance of

computer security?

yes 32 10 6 2 2 22 74 59.20%

no 21 1 2 4 20 3 51 40.80%

computer ethics?

yes 23 9 3 2 0 23 60 50.85%

no 27 1 5 3 20 2 58 49.15%

computer viruses?

yes 31 8 5 3 8 24 79 64.23%

no 22 3 3 2 13 1 44 35.77%

16 Are your computers protected with passwords?

yes 27 9 8 2 6 18 70 55.12%

no 28 1 0 5 16 7 57 44.88%

16a. How often are they changed?

weekly 2 1 3 6 11.54%

monthly 6 4 1 6 17 32.69%

quarterly 2 1 3 5.77%

seldom 4 2 2 8 15.38%

never 6 2 3 1 2 4 18 34.62%

17. Are your sensitive data files encrypted?

yes 17 6 2 1 3 14 43 38.05%

no 28 4 6 5 18 9 70 61.95%

18. Do you keep a log of computer usage?

yes 14 6 4 4 7 9 44 36.36%

no 36 5 4 2 15 15 77 63.64%

19. Are employees allowed to take software/data home with them?

yes 26 2 2 3 15 4 52 40.31%

no 27 9 6 7 8 20 77 59.69%

20. Are employees allowed to use their own software in the workplace?

yes 32 1 2 3 18 7 63 49.61%

no 22 10 6 3 4 19 64 50.39%

21. Is your software locked up at night?

yes 27 6 3 3 7 12 58 46.40%

no 26 5 5 3 16 12 67 53.60%

22. Is your data locked up at night?

yes 28 7 2 2 7 13 59 47.58%

no 25 4 6 4 15 11 65 52.42%

23. Is your hardware bolted down?

yes 9 3 1 0 8 2 23 22.33%

no 30 8 6 5 11 20 80 77.67%

24. Are your office supplies locked up?

yes 40 10 7 5 14 17 93 76.86%

no 12 1 1 0 6 8 28 23.14%

25. Are your computing facilities in a limited access room?

yes 29 8 6 3 15 12 73 60.33%

no 21 3 2 3 7 12 48 39.67%

26. Do you use voltage regulators/surge protectors?

yes 32 9 8 4 14 16 83 71.55%

no 14 2 0 2 6 9 33 28.45%

27. Do you use uninterruptable power supplies(UPS)?

yes 31 10 8 2 5 16 72 59.50%

no 23 1 0 3 13 9 49 40.50%

28. Have you been a victim of computer crime?

yes 2 1 0 2 2 2 9 7.76%

no 46 10 8 2 18 23 107 92.24%

28a. If yes was it reported to the authorities?

yes 0 1 2 0 1 4 44.44%

no 2 0 0 2 1 5 55.56%

28b. What happened to the suspect?

fired 1 1

arrested 0

convicted 0

warning 1 1 2

29. Do you have procedures for reporting and handling computer crime?

yes 10 5 1 0 1 7 24 19.67%

no 42 6 7 6 19 18 98 80.33%