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Vol 1, 8th EditionE-Business News & IssuesEditorialAs part of the joint CICA/AICPA efforts to develop frame- IN THIS ISSUEworks to evaluate such matters as privacy, confidentiality,security, processing integrity and availability, we are seeing an• Predictions for 2004 2increased interest by organizations in these topics. In particular,management is interested in having a basis for evaluating theirvarious systems. While this has been coming primarily from larger • Privacy 2organizations, we are starting to see an increased interest from mid-sized firms who are realizing the necessity of having appropriate and • Security 3effective systems to ensure privacy and security. We encourage you to goto www.cica.ca/trustservices and to www.cica.ca/privacy and to have a• Wireless 3look at the frameworks. They can be a useful tool for your organization oryour clients.• Web Links 4In this issue, we have climbed on the prognostication bandwagon. We look atwhat some authors are predicting in the area of technology in the coming year.We have also added our own personal view as well.Bryan Walker, CA (bryan.walker@cica.ca)EditorCICA Member ServicesInnovations for a changing world 1Predictions for 2004 Technologies to watch for (Business2.0)Among technologies forecasted to receive greater attention in the coming year are:Supply chains and Radio Frequency identification (RFID) tags - the introduction of RFID tags is underway. Forexample, all Wal-Mart’s suppliers ...
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Editorial
As part of the joint CICA/AICPA efforts to develop frame-
works to evaluate such matters as privacy, confidentiality,
security, processing integrity and availability, we are seeing an
increased interest by organizations in these topics. In particular,
management is interested in having a basis for evaluating their
various systems. While this has been coming primarily from larger
organizations, we are starting to see an increased interest from mid-
sized firms who are realizing the necessity of having appropriate and
effective systems to ensure privacy and security. We encourage you to go
to
www.cica.ca/trustservices
and to
www.cica.ca/privacy
and to have a
look at the frameworks. They can be a useful tool for your organization or
your clients.
In this issue, we have climbed on the prognostication bandwagon. We look at
what some authors are predicting in the area of technology in the coming year.
We have also added our own personal view as well.
Bryan Walker,
CA
(bryan.walker@cica.ca)
Editor
CICA Member Services
IN THIS ISSUE
• Predictions for 2004
2
• Privacy
2
• Security
3
• Wireless
3
• Web Links
4
E-Business News & Issues
Vol 1, 8th Edition
Innovations for a changing world
1
Predictions for 2004
Technologies to watch for (Business2.0)
Among technologies forecasted to receive greater attention in the coming year are:
Supply chains and Radio Frequency identification (RFID) tags
- the introduction of RFID tags is underway. For
example, all Wal-Mart’s suppliers must use RFID tags for pallets and cases of merchandise by 2005.
Wireless broadband - 802.16
, or ‘Wi-Max’, enables wireless networks to extend as far as to 30 miles and transfer data,
voice, and video at speeds faster than cable or DSL.
Software – Anti-spam software
- “Challenge/response” technology may be the answer in dealing with spam; it requires
senders to manually verify their identity before emails are passed along to intended recipients.
– Business2.0 - November 30, 2003
In store for 2004 (ZDNet’s Tech Update)
Offshore outsourcing
- the trend continues as enterprises continue to look for lower cost IT services.
Utility computing
- the move towards on-demand computing will be incremental but it will dominate the high-level
conversations about strategic directions for IT and business. The benefit of utility computing is integration of loosely
coupled components into composite applications, resulting in more flexibility and, hopefully, improved total cost of
ownership.
Wi-Fi
- the majority of notebooks will come with built-in Wi-Fi connectivity. Concerns about security may be addressed
by new standards, such as 802.11i for security. Faster 802.11a and 802.11g will become prevalent as the current standard
802.11b fades away.
VoIP
- wireless local area networks will begin to carry more voice traffic as VoIP adoption starts to increase.
– ZDNet, December 21, 2003
Canadian law in 2004 (Toronto Star)
Privacy
– the new federal privacy commissioner, Jennifer Stoddart, will be working to restore public confidence in her
office. Following BC and Alberta’s achievements in 2003, Ontario will introduce its own provincial privacy law in 2004.
Copyright
- Copyright took center stage in 2003 for both courts and policymakers, the coming year looks no different.
Internet marketing
- the United States, Europe, and Australia all passed anti-spam legislation last year. Canada may be
next. Another Internet marketing practice receiving more attention is the use of pop-up and pop-under ads. Search
engines will also face increasing legal challenges as they move to paid search results.
– Toronto Star, January 5th, 2004
Editorial comment:
What is our view? Privacy will increase in focus as more organizations look beyond establishing policy.
Organizations will be constantly reviewing their systems as new technologies are incorporated into their everyday operations, resulting
in continuing concerns about security and systems reliability.
Privacy
Privacy well underway … or is it?
Less than a month after PIPEDA came into full effect, many firms had yet to appoint a chief privacy officer,
audit their business practices or rewrite their privacy policies. This lack of momentum is compounded by
clauses in the Act around personal information which are still widely open to interpretation or
misinterpretation. For example, some organizations don’t even realize that they may be sharing personal
information when using an outside company to host their websites.
– ITBusiness.ca, January 20th, 2004
2
Innovations for
Security
Security Trends for 2004
A survey conducted by the Yankee Group revealed that four out of five businesses were infected by a virus or worm
in 2003; denial-of-service attacks were the second most common security incident. These statistics are expected to
increase in 2004.
2004 will see a sharp increase in the use of spyware which can expose a user’s Web-surfing habits, collect every
keystroke and collect sensitive information such as passwords, credit card numbers and financial information.
Security will consume substantial amounts of companies’ IT budgets in the coming year.
- InternetWeek.com, January 5, 2004
Lost in Cyberspace
In an effort to remove spam, Internet service providers have installed increasingly complex filtering systems
that can cause legitimate emails to go missing. Not all spam filters notify senders if their messages have
been blocked. Unless recipients complain, there is no way of knowing whether messages have arrived or not.
- TechNewsWorld, February 18, 2004
MyDoom Worm
A new variant of the MyDoom worm, named ‘Doomjuice’ seeks out computers infected with the original
MyDoom.A or MyDoom.B. On arrival, it launches a distributed denial-of-service (DDoS) attack against targeted
Web Sites. The DDoS attacks generated by MyDoom and its variants have caused noticeable traffic slowdowns
across the Internet.
There is also a new and disturbing characteristic of this latest worm. Doomjuice distributes the source code of
the original MyDoom.A, making it available to anyone wishing to recompile and copy it.
Many machines had been cleared of the original MyDoom worm when Doomjuice surfaced, thus lessening its
immediate impact. However, the latest development has provided proof-of-concept and opened the door for
other virus authors.
- EcommerceTimes, February 10, 2004
Editorial comment:
Spam, viruses, hacks are the most common security risks. As the articles indicate, there is no
expectation that these risks will be significantly reduced in the near future. Organizations should be undertaking regular
“security reviews” to ensure their defences are current and effective.
Wireless
Security is still the weakest link for wireless
“Portability and wireless access [has] opened the door to risks including device theft, interception of information, and
unauthorized access,” according to Amry Junaideen, a principal in the Deloitte and Touche Security Services division.
“Wireless devices shouldn’t be set to use the defaults that come with the equipment,” added Sydney Fisher, director of
product marketing for McAfee Sniffer Technologies. “Wireless infrastructure is in a growth curve, so the technology is not
necessarily there to make it reliable yet.”
– TechNewsWorld - February 17th, 2004
Before Wi-FI can go mainstream
Corporations see security as a huge obstacle to Wi-Fi despite the attraction of speed and lower costs. However, the big
risk is that, without good protection, every laptop could provide a back door into the corporate network.
Despite security concerns, sales of Wi-Fi networking equipment increased by 40% in 2003 to $2.5 billion and half the
laptops sold in 2003 were Wi-Fi enabled; nearly all laptops will be Wi-Fi enabled in 2004. However, ‘seamless roaming’ is
still all but impossible and the relatively small number of “hot spots” does not cover locations where consumers may want
to use Wi-Fi.
continued on page 4
3
a changing world
Before Wi-FI can go mainstream
– continued
A recent Goldman Sachs survey of CIOs put Wi-Fi among the top three priorities for
technology purchases. Nevertheless, the corporate Wi-Fi market still has to deal with ease
of management. Wi-Fi means adding yet more new security responsibilities, since the lack
of physical barriers to intruders requires extra scrutiny of network traffic.
– Business Week — February 18th, 2004
Quebec hospital explores use of wireless and healthcare
The Centre hopitalier universitaire de Quebec (CHUQ) is testing a wireless system that will eventually
enable the facility’s 9,000 staff to work from mobile handhelds and tablet PCs.
Many hospitals currently ban wireless usage due to concerns about electromagnetic interference (EMI) and
wireless security. In Quebec, it is currently illegal to make a wireless connection to the Quebec-hospital RTSS
intranet due to security concerns. However, the hospital’s advisory committee is focusing on how wireless devices
can function in a hospital setting, while addressing the security and interference issues.
– ITBusiness.ca - February 24, 2004
BC restaurant chain offers Wi-Fi with power lunch
Vancouver-based Earls Restaurants, with more than 50 locations in British Columbia, Alberta and Saskatchewan, has
completed a Wi-Fi project with FatPort Inc. also in Vancouver. Earls offers wireless Internet access to corporate
customers, who regularly book business lunches.
Other Canadian restaurant chains have also started to offer Wi-Fi Internet access over the last year, including Lone Star
Texas Grill and Big Daddy’s Crab Shack and Oyster Bar in Ottawa.
– ITBusiness.ca - February 10, 2004
Truckstop.net puts drivers on the road to connectivity
“About 25% of all truckers in North America, currently used laptops to conduct business and stay in touch with family
and their companies while on the road,” said Alan Meiusi, vice president and COO of Truckstop.net. “They use the
Internet and their laptops, not only as a point of connectivity to the rest of the world, but also as a communication tool
with family and to do things like online banking.”
- ITBusiness.ca - February 27, 2004
RFID and security
A major obstacle threatening the widespread adoption of RFID is the concern about privacy risks for consumers. The
chips could allow collection of personal information without permission.
Computer security software maker RSA Security has introduced a new technology to cloak the data collected from RFID
tags. The system is intended to guard proprietary data.
RSA claims that by placing an RFID-loaded product into parcels bearing one of the blocker tags, the system would cause
RFID readers to miss any information carried by the product in the bag, thereby protecting consumers. (Once the product
is taken out of the bag armed with the blocking system, readers will again be able to scan the RFID tag accurately.)
- CNet.com — February 24, 2004
Editorial comment:
This collection of articles illustrate that the key issues of privacy and security are woven into the introduction of
new technologies. These issues are integral to the successful use and acceptance of these technologies and, if not resolved, will limit
the ability of organizations to reap the benefits of increased productivity.
Web Links
Top 10 Risks of Offshore Outsourcing –
http://techupdate.zdnet.com/techupdate/stories/main/Top_10_Risks_Offshore_Outsourcing.html
Sophisticated credit card scammers –
http://www.snopes.com/crime/warnings/creditcard.asp
Innovations for a changing world
4
