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Author Kshetri, Nir
Source ACM Digital Library
Content type Text
Publisher Association for Computing Machinery (ACM)
File Format PDF
Language English
Abstract Introduction The meteoric rise in cybercrime has been an issue of pressing concern to our society. According to Federal Bureau of Investigation (FBI), nine out of 10 U.S. companies experienced computer security incidents in 2005 which led to a loss of \$67.2 billion. A survey conducted by IBM found that U.S. businesses worry more about cybercrimes than about physical crimes. Internet-related frauds accounted for 46% of consumer complaints made to the Federal Trade Commission (FTC) in 2005. Total losses of Internet fraud victims reporting to FTC increased from \$205 million in 2003 to \$336 million in 2005. In a July 2007 interview with USA Today, McAfee CEO reported that his company received 3,000--5,000 threat submissions per day from customers and 10% of them were new. This paper offers an economic analysis to explain cybercrimes' escalation. We define cybercrimes as criminal activities in which computers or computer networks are the principal means of committing an offense. Examples include cyber-theft, cyber-trespass, cyber-obscenity, critical infrastructure attacks and $cyber-extortions.^{6}$ The most notable features of the cybercrime environment include newness, technology and skill-intensiveness, and a high degree of globalization. Factors such as a wide online availability of hacking tools, information sharing in the cyber-criminal community, availability of experienced hackers' help to less skillful criminals and congestion in law enforcement systems produce externality effects within the cyber-criminal community as well as across society and businesses. We focus on three positive or self-reinforcing feedback systems to examine increasing returns in cybercrime related activities. In this article, we first provide an overview of the positive feedback loops that reinforce cyber-criminals' behavior. Then, we describe mechanisms associated with externality in cybercrime related activities.
Description Affiliation: University of North Carolina-Greensboro, NC (Kshetri, Nir)
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG
Learning Resource Type Article
Publisher Date 2005-08-01
Publisher Place New York
Journal Communications of the ACM (CACM)
Volume Number 52
Issue Number 12
Page Count 4
Starting Page 141
Ending Page 144

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Source: ACM Digital Library