The Deterrent and Displacement Effects of Information Security Enforcement: International Evidence

Publication Type

Journal Article

Publication Date

9-2008

Abstract

We adapt the event study methodology from research in financial economics to study the impact of government enforcement and economic opportunities on information security attacks. We found limited evidence that domestic enforcement deters attacks within the country. However, we found compelling evidence of a displacement effect: U.S. enforcement substantially increases attacks originating from other countries. We also found strong evidence that attackers are economically motivated in that the number of attacks is increasing in the U.S. unemployment rate. Our findings were robust to differences in the effective time window of enforcement and the measurement of vulnerabilities.

Keywords

economics, information security, security attacks, security enforcement, unemployment rate

Discipline

Computer Sciences | Information Security

Research Areas

Information Systems and Management

Publication

Journal of Management Information Systems

Volume

25

Issue

2

First Page

125

Last Page

144

ISSN

0742-1222

Identifier

10.2753/MIS0742-1222250206

Publisher

Taylor & Francis (Routledge): SSH Titles

Additional URL

http://dx.doi.org/10.2753/MIS0742-1222250206

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