Countering Malicious Cyber Activity: Targeted Financial Sanctions

Abstract

Since 2012 policymakers in the United States and Europe have imposed targeted financial sanctions against malicious cyber operators with the stated goal of deterring such activity. This draft paper provides an overview of the legal frameworks for sanctioning malicious cyber actors and the set of relevant sanctions imposed to date. Despite an emphasis on the goal of deterrence, both policymakers and academics have difficulty determining whether sanctions deter malicious cyber activity. Considering the continued use of cyber sanctions, this draft paper highlights key considerations for policymakers to evaluate whether sanctions can deter wrongful behavior in cyberspace.

Keywords: sanctions, economic statecraft, cyber, deterrence, descriptive studies, policy evaluation

JEL Classification: F50, F51