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Things to remember:

Be smart while you are online. For instance, never open a file from an unknown source. This concept is very important and can protect you computer from many types of outside intrusions. This is easier said than done. To play it safe, always be wary of files coming via Usenet, ICQ, AIM, IRC, etc.

Another thing to understand are the risks involved in running any type of server. This includes sharing files over Network Neighborhood, ftp servers, and http servers. Although these things are all allowed, they should only be done by experience users. One becomes more vulnerable to outside attacks as soon as they expose themselves, i.e. run servers. A poorly configured or insecure server can be an invitation to hackers who will either corrupt resident files or set up their own services on your computer. Remember that a poorly configured server can but the security of the whole network at risk. This is why one should have a full understanding of what they are doing before allowing any outside access to their PC.

It is imperative to know who has access to your computer and what it is used for. You are responsible for the activities of the people who use your computer. So if your room mate or your friend down the hall is using your computer, make sure that you know what they are using your computer for. Their actions could land you in trouble is your computer is used to violate University policies or for any illegal activity.

North Carolina State University's computer use policy:

Users of the on campus network should be aware that the University has a right to examine information passing over the network for specific purposes. The computer use policy states:

The University may examine electronic information stored on or passing over University equipment or networks, for the following purposes:

1. To insure the security and operating performance of its systems and networks.

2. To enforce University policies or compliance with state or federal law where:

(a) Examination is approved in advance by a dean, vice chancellor, or vice provost, and either

(b) there is a reasonable suspicion that a law or University policy has been violated and examination is appropriate to investigate the apparent violation, or

(c) examination is necessary to comply with a state or federal law.

Computer Users should have no expectation of privacy in the material sent, received, or stored by them on or over the University computing systems or networks when the conditions of subparagraph 1, or 2(a) and 2(b), or 2(a) and 2(c) above have been satisfied.

Other sources:

Privacy & Security - University of New York at Albany

Electronic Privacy Information Center

Cookie Central

ANONYMIZER.COM - Privacy is Your Right

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