The Simple Economics of Cybercrimes

IEEE Security and Privacy, Vol. 4, No. 1, January/February 2006

19 Pages Posted: 8 Feb 2006  

Nir Kshetri

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

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.

Keywords: Cybercrimes, vicious circle, hacker, online extortions, psychological costs and benefits

JEL Classification: O33

Suggested Citation

Kshetri, Nir, The Simple Economics of Cybercrimes. IEEE Security and Privacy, Vol. 4, No. 1, January/February 2006. Available at SSRN: https://ssrn.com/abstract=881421

Nir Kshetri (Contact Author)

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States
336-334-4530 (Phone)
336-334-4141 (Fax)

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