Cybercrime and Insecurity in International Perspective: Economic and Political Disincentives to Effective Regulation and Compliance

• In Event: White-Collar Crime at 75: Regulation and Compliance

Abstract

Global corporate cybercrime is on the rise and, while businesses are the targets, the ultimate victims are individual consumers whose information is stolen. The U.S. government does not regulate informational security, and private companies face a variety of disincentives that reduce the likelihood of going public during data breaches. Likewise, government contractors and public power and water systems remain vulnerable amid political pressures to operate with low costs. This study draws upon Congressional testimony, public security reports, and private analysis from security firms to better understand the confluence of factors that negatively affect regulatory proposals and the use of effective cyber security mechanisms in international context.. Our findings indicate that economic disincentives, political pressure and conflicting ideologies, and legal lags at both the federal and local levels account for an insecure private and public informational structure in which individuals are routinely victimized. We conclude that enforcement proposals aimed at “target hardening” will not be effective until stronger regulation and a concerted effort at compliance are first realized.

Authors

• Adam Ghazi-Tehrani, University of California, Irvine

• Henry N. Pontell, University of California, Irvine