The Simple Economics of Cybercrimes

  • Authors:
  • Nir Kshetri

  • Affiliations:
  • University of North Carolina

  • Venue:
  • IEEE Security and Privacy
  • Year:
  • 2006

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Abstract

Cybercrimes are becoming increasingly pervasive and sophisticated, and can have more severe economic impact than many conventional crimes. Technology and skill intensiveness, a high degree of globalization, and their newness make cybercrimes structurally different. The characteristics of cybercriminals, cybercrime victims, and law enforcement agencies have a reinforcing effect on each other, leading to a vicious circle of cybercrime. The author builds on key elements of this circle to assess a hacker's cost-benefit calculus, and suggests possible mechanisms for combating cybercrime.