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File name: SSRN-id881421. ; Size: 392K
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The Simple Economics of Cybercrimes
Nir Kshetri
University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics
IEEE Security and Privacy, Vol. 4, No. 1, January/February 2006
Abstract:
Cybercrimes are becoming increasingly pervasive and sophisticated and have more severe economic impacts than most conventional crimes. Technology and skill intensiveness; a higher degree of globalization than conventional crimes; and the newness make cybercrimes structurally different. In this paper, we examine how characteristics of cyber criminals, cybercrime victims and law enforcement agencies have reinforced each other and formed the vicious circle. Next, we build on key elements of the vicious circle and some additional characteristics of cybercrimes to assess the cost-benefit calculus of a hacker. We then propose some mechanisms to break the vicious circle of cybercrimes and to alter a hacker's cost-benefit structure of committing such crimes.
Number of Pages in PDF File: 19
Keywords: Cybercrimes, vicious circle, hacker, online extortions, psychological costs and benefits
JEL Classification: O33
Accepted Paper Series
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Date posted: February 8, 2006
Suggested CitationKshetri, Nir, The Simple Economics of Cybercrimes. IEEE Security and Privacy, Vol. 4, No. 1, January/February 2006. Available at SSRN: http://ssrn.com/abstract=881421
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