CISA Certified Information Systems Auditor – Question1333

In RFID technology which of the following risk could represent a threat to non-RFID networked or collocated systems, assets, and people?

A.
Business Process Risk
B. Business Intelligence Risk
C. Privacy Risk
D. Externality Risk

Correct Answer: D

Explanation:

Explanation:
RFID technology potentially could represent a threat to non-RFID networked or collocated systems, assets, and people.
RFID systems typically are not isolated from other systems and assets in the enterprise. Every connection point between the RFID system and something outside the RFID system represents a potential vulnerability for the entity on the other side of the connection, whether that is an application process, a valued asset, or a person.
Externality risks are present for both the RF and enterprise subsystems of an RFID system.
The main externality risk for the RF subsystem is hazards resulting from electromagnetic radiation, which could possibly range from adverse human health effects to ignition of combustible material, such as fuel or ordnance.
The main externality risk for the enterprise subsystem is successful computer network attacks on networked devices and applications. Computer network attacks can involve malware (e.g., worms and viruses) or attack tools that exploit software vulnerabilities and configuration weaknesses to gain access to systems, perform a denial of service, or cause other damage.
The impact of computer network attacks can range from performance degradation to complete compromise of a mission-critical application. Because the externality risk by definition involves risks outside of the RFID system, it is distinct from both the business process and business intelligence risks; externality risks can be realized without having any effect on RFID-supported business processes or without revealing any information to adversaries.
For your exam you should know the information below:
Radio-frequency identification (RFID) is the wireless non-contact use of radio-frequency electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. The tags contain electronically stored information.
Some tags are powered by and read at short ranges (a few meters) via magnetic fields (electromagnetic induction). Others use a local power source such as a battery, or else have no battery but collect energy from the interrogating EM field, and then act as a passive transponder to emit microwaves or UHF radio waves (i.e., electromagnetic radiation at high frequencies). Battery powered tags may operate at hundreds of meters. Unlike a barcode, the tag does not necessarily need to be within line of sight of the reader, and may be embedded in the tracked object.
RFID tags are used in many industries. An RFID tag attached to an automobile during production can be used to track its progress through the assembly line. Pharmaceuticals can be tracked through warehouses. Livestock and pets may have tags injected, allowing positive identification of the animal.
RFID RISKS
RFID technology enables an organization to significantly change its business processes to:
Increase its efficiency, which results in lower costs, Increase its effectiveness, which improves mission performance and makes the implementing organization more resilient and better able to assign accountability, and Respond to customer requirements to use
RFID technology to support supply chains and other applications.
The RFID technology itself is complex, combining a number of different computing and communications technologies to achieve the desired objectives. Unfortunately, both change and complexity generate risk.
For RFID implementations to be successful, organizations need to effectively manage that risk, which requires an understanding of its sources and its potential characteristics. This section reviews the major high-level business risks associated with RFID systems so that organizations planning or operating these systems can better identify, characterize, and manage the risk in their environments.
The risks are as follows:
Business Process Risk -Direct attacks on RFID system components potentially could undermine the business processes the RFID system was designed to enable.
Business Intelligence Risk- An adversary or competitor potentially could gain unauthorized access to RFID-generated information and use it to harm the interests of the organization implementing the RFID system.
Privacy Risk – Personal privacy rights or expectations may be compromised if an RFID system uses what is considered personally identifiable information for a purpose other than originally intended or understood. The personal possession of functioning tags also is a privacy risk because it could enable tracking of those holding tagged items.
Externality Risk -RFID technology potentially could represent a threat to non-RFID networked or collocated systems, assets, and people. An important characteristic of RFID that impacts all of these risks is that RF communication is invisible to operators and users.
The following answers are incorrect:
Business Process Risk -Direct attacks on RFID system components potentially could undermine the business processes the RFID system was designed to enable.
Business Intelligence Risk- An adversary or competitor potentially could gain unauthorized access to RFID-generated information and use it to harm the interests of the organization implementing the RFID system.
Privacy Risk – Personal privacy rights or expectations may be compromised if an RFID system uses what is considered personally identifiable information for a purpose other than originally intended or understood. The personal possession of functioning tags also is a privacy risk because it could enable tracking of those holding tagged items.
Reference:
CISA review manual 2014 page number 248