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The smuggling theory approach to organized digital crime | IEEE Conference Publication | IEEE Xplore

The smuggling theory approach to organized digital crime


Abstract:

Governments and inter-governmental organizations are developing cross-jurisdictional mechanisms to decrease global digital crime. The underlying assumption is that the lo...Show More

Abstract:

Governments and inter-governmental organizations are developing cross-jurisdictional mechanisms to decrease global digital crime. The underlying assumption is that the loss incurred from ODC decreases social welfare in every jurisdiction. In this paper we test this assumption by using a framework from economic theory that addresses smuggling in the physical world. Using botnets as a case study we argue that ODC is analogous to smuggling. We then enumerate the conditions under which a model of ODC as smuggling leads to an increase in social welfare using a classic economic model of smuggling. Thus, we show that to the extent ODC is comparable to smuggling, there are situations where ODC increases social welfare. This implies that there will always be some jurisdictions or locales where ODC could rationally be supported. One possible policy implication is that jurisdictions should invest in domestic network reliance and securing the machines within their own jurisdictions.
Date of Conference: 07-09 November 2011
Date Added to IEEE Xplore: 16 February 2012
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Conference Location: San Diego, CA, USA

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