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The Global Cybercrime Industry

Economic, Institutional and Strategic Perspectives

verfasst von: Nir Kshetri

Verlag: Springer Berlin Heidelberg

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

The Internet’s rapid diffusion and digitization of economic activities have led to the emergence of a new breed of criminals. Economic, political, and social impacts impacts of these cyber-criminals’ activities have received considerable attention in recent years. Individuals, businesses, and governments rightfully worry about the security of their systems, networks, and IT infrastructures. Looking at the patterns of cybercrimes, it is apparent that many underlying assumptions about crimes are ?awed, unrealistic, and implausible to explain this new form of criminality. The empirical records regarding crime patterns and stra- gies to avoid and ?ght crimes run counter to the functioning of the cyberworld. The ?elds of hacking and cybercrime have also undergone political, social, and psychological metamorphosis. The cybercrime industry is a comparatively young area of inquiry. While there has been an agreement that the global cybercrime industry is tremendously huge, little is known about its exact size and structure. Very few published studies have examined economic and institutional factors that in?uence strategies and behaviors of various actors associated with the cybercrime industry. Theorists are also debating as to the best way to comprehend the actions of cyber criminals and hackers and the symbiotic relationships they have with various players.

Inhaltsverzeichnis

Frontmatter

Chapter 1. The Global Cybercrime Industry and Its Structure: Relevant Actors, Motivations, Threats, and Countermeasures

Abstract

The meteoric rise in cybercrime has been an issue of pressing concern to our society. Cybercrime is global and organized. This chapter deals with definitional issues; analyses economic, social, and political impacts; and discusses methodological, conceptual, logical, and statistical problems in estimating the size of the cybercrime industry. The chapter also sheds light into different types of cybercrimes and relevant actors associated with the cybercrime industry.

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Chapter 2. Simple Economics of Cybercrime and the Vicious Circle

Abstract

Cybercrimes are becoming increasingly pervasive and sophisticated and have more severe economic impacts than most conventional crimes. Technology and skill-intensiveness; a higher degree of globalization than conventional crimes; and the newness make cybercrimes structurally different. In this chapter, we examine how characteristics of cyber-criminals, cybercrime-victims, and law-enforcement agencies have reinforced each other and formed the vicious circle. Next, we build on key elements of the vicious circle and some additional characteristics of cybercrimes to assess the cost–benefit calculus of a hacker.

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Chapter 3. An Institutional Perspective on Cybercrimes

Abstract

There are persuasive arguments for thinking that institutional processes have enormous power to explain cyberattacks. This chapter examines how macro- and micro-level institutions provide regulative, normative, and cognitive legitimacy to hackers’, organizations’, and governments’ actions that facilitate or hinder cyberattacks. More specifically, we analyze institutions at supra-national, national, professional, industry, organizational, informal network, and intra-organizational levels in terms of their impacts on cyberinfrastructure, network, and computer attacks.

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Chapter 4. Increasing Returns and Externality in Cybercrimes

Abstract

This chapter employs increasing returns and externality approaches to explain cybercrimes’ escalation. We focus on three positive or self-reinforcing feedback systems to examine increasing returns in cybercrime-related activities. They are related to economic, sociopolitical, and cognitive systems. We also examine three mechanisms that may give positive feedback to cyber-criminals: inefficiency and congestion in the law-enforcement system, acceleration of the diffusion of cybercrime know-how and technology, and increase in potential criminals’ predisposition toward cybercrimes.

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Chapter 5. Institutional Field Evolved Around Cybercrimes

Abstract

The growth of criminal enterprises in the cyberworld has been an issue of pressing concern to our society. Concepts and theory building are lacking on institutions from the standpoint of criminal entrepreneurship in the digital world. In an attempt to fill this void, this chapter proposes a framework for identifying clear contexts and attendant mechanisms associated with how institutions have interacted with cybercrimes. The underlying notion in this chapter is that the rules of the game offered by formal and informal institutions have favored cybercrimes more than most conventional crimes. The degree of institutional favor, which cybercrime-related entrepreneurs enjoyed before, however, is decreasing.

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Chapter 6. Information and Communications Technologies, Cyberattacks, and Strategic Asymmetry

Abstract

In the history of warfare, there are a number of examples of strategic uses of asymmetric technologies. Consistent with history and theory, individuals, organizations, and nations have spotted opportunities to employ information and communications technologies to gain and exploit asymmetric advantages and to counter asymmetric weaknesses. This chapter discusses various asymmetries associated with institutions, nations, and organizations that influence the ICT-security nexus. Regulative, normative, and cognitive institutions in a country provide various mechanisms that affect the nature of positive and negative asymmetries. Nations and organizations also differ in terms of their capability to assimilate ICT tools to gain positive asymmetries and deal with vulnerabilities of negative asymmetries.

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Chapter 7. Global Heterogeneity in the Pattern of the Cybercrime Industry

Abstract

This chapter draws upon literatures on psychology, economics, international relation, and warfare to propose a framework to explain international heterogeneity in cybercrimes. We found that countries across the world differ in terms of regulative, normative, and cognitive legitimacy to different types of web attacks. Cyber-wars and crimes are also functions of the stocks of hacking skills relative to the availability of economic opportunities. An attacking unit’s selection criteria for the target network include symbolic significance and criticalness, degree of digitization of values, and weakness in defense mechanisms.

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Chapter 8. Structure of Cybercrime in Developing Economies

Abstract

Cybercrime’s footprints across the developing world are getting bigger. In this chapter, we examine the structure of cybercrimes in developing economies. Specifically, we analyze economic and institutional factors facing cyber-criminals and potential victims in the developing world. The findings indicate that formal institutions related to cybercrimes are thin and dysfunctional in a developing economy; a cyber-criminal is less likely to be stigmatized in a developing economy than in a developed economy; and organizations’ and individuals’ technological and behavioral defense mechanisms are likely to be weaker in a developing economy than in a developed economy.

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Chapter 9. Institutional and Economic Foundations of Cybercrime Business Models

Abstract

Cybercrime business models are rapidly evolving. It is argued that cyber-criminals closely imitate business models of legitimate corporations. Cybercrime firms and legitimate businesses, however, differ in terms of the important sources of core competence. Legitimate businesses’ core processes are centered around creating the most value for customers. Most cyber-criminals’ core processes, however, involve extorting and defrauding prospective victims and minimizing the odds of getting caught. Cyber-criminals and legitimate businesses also differ in terms of the legitimacy related to regulative institutions and inter-organizational arrangements. This chapter disentangles the mechanisms behind the cybercrime business models and examines the contexts and processes associated with such models.

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Chapter 10. The Global Click Fraud Industry

Abstract

Click fraud is arguably the cyberworld’s biggest scam. How do click fraudsters frame their actions? What are the characteristics of click fraud victims? How do formal and informal institutions affect click fraudsters’ actions? We address these questions by examining the contexts, mechanisms, and processes associated with the click fraudsters’ profitability and performance. We also discuss some attempts to criminalize and stigmatize click fraudsters.

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Chapter 11. Concluding Remarks and Implications

Abstract

This concluding chapter provides insights into some possible forces and mechanisms that are likely to influence the trajectory of the future cybercrime landscape. It also discusses possible measures that can be taken at various levels to combat this new form of criminality. Implications for businesses, consumers, and policy makers are discussed and directions for future research are pointed out. Integrative approaches that combine policy and technological measures at various levels are likely to make the cyberworld more secure.

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Titel: The Global Cybercrime Industry
verfasst von: Nir Kshetri
Verlag: Springer Berlin Heidelberg
Electronic ISBN: 978-3-642-11522-6
Print ISBN: 978-3-642-11521-9
DOI: https://doi.org/10.1007/978-3-642-11522-6