Economic Impacts of Alternative Regulations for Data Breach
- Resource Type
- Academic Journal
- Authors
- Wooje Cho
- Source
- 정보사회와 미디어. 2015-12 16(3):17-30
- Subject
- Information Security
Regulatory Framework
Analytical Modeling
Customer Data
Data Breach
- Language
- Korean
- ISSN
- 2508-7800
2734-052X
A considerable amount of customer data has been collected by firms for their business activities. Though customers’ personal information should be secured by the firms, the customer data is often stolen and misused for various crimes. We develop an analytic model for the data breach of firms, and investigate alternative legal frameworks that affect firm’s decision on securing customer data. Our findings show that the laws imposing the liability for customer’s loss caused by data breach on the firm may give greater incentive for firms to invest in security to protect customer data than the laws imposing the liability on customers, and the conditions are identified in this study.