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

Author List: Png, Ivan P. L.; Wang, Chen-Yu; Wang, Qiu-Hong;
Journal of Management Information Systems, 2008, Volume 25, Issue 2, Page 125-144.
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; unemployment rate
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#56 0.359 information security interview threats attacks theory fear vulnerability visibility president vulnerabilities pmt behaviors enforcement appeals protection insiders attackers precautions vice
#164 0.134 countries global developing technology international country developed national economic policy domestic study foreign globalization world government nations innovative technological especially
#186 0.125 security information compliance policy organizations breach disclosure policies deterrence breaches incidents results study abuse managed isp violations based comply protection
#176 0.084 e-commerce value returns initiatives market study announcements stock event abnormal companies significant growth positive using methodology investments period time initiative
#173 0.076 effect impact affect results positive effects direct findings influence important positively model data suggest test factors negative affects significant relationship
#285 0.059 effects effect research data studies empirical information literature different interaction analysis implications findings results important set large provide using paper