Computer Hacking: Making the Case for a National Reporting Requirement

Abstract:     
The incidences of computer hacking have increased dramatically over the years. Indeed, the current federal laws, including the Computer Fraud and Abuse Act, have done very little to deter potential computer hackers. This article finds that only a small percentage of computer hackers are ever caught and prosecuted. The biggest problem is that most victimized companies regrettably choose to hide the problem from the public due in part to negative publicity concerns. As a result, this article proposes that a mandatory reporting requirement imposed by Congress, which forces companies to disclose intrusions, will be salient to the problem of computer hacking in several regards. First, individuals who are affected by the intrusions will receive advance warning that their personal information was stolen by hackers. This will allow these affected individuals to take precautions in securing their identities. Secondly, the mandatory reportings will assist law enforcement in investigating and prosecuting a greater percentage of computer hackers. As more prosecutions of computer hackers are publicized, this should reduce the future incidences of computer hackings. Moreover, on July 1, 2003, California became the first state to enact a reporting requirement for computer hackings. This could provoke other states to pass similar reporting requirements. Because computer hacking is a national (and international) problem, Congress needs to consider enacting a reporting requirement before an untenable piecemeal state-by-state solution occurs.

Keywords: Computer, hacking, hacker, intrusion, software security, cybercrime, identity theft

JEL Classifications: K20, K42, O33, O38

Working Paper Series