For decades, we have prized efficiency in our economy. We strive for it. We reward it. In normal times, that’s a good thing. Running just at the margins is efficient. A single just-in-time global supply chain is efficient. Consolidation is efficient. And that’s all profitable. Inefficiency, on the other hand, is waste. Extra inventory is … Read More “The Security Value of Inefficiency” »
Category: economicsofsecurity
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Today is the second day of the thirteenth Workshop on Security and Human Behavior. It’s being hosted by the University of Cambridge, which in today’s world means we’re all meeting on Zoom. SHB is a small, annual, invitational workshop of people studying various aspects of the human side of security, organized each year by Alessandro … Read More “Security and Human Behavior (SHB) 2020” »
Interesting article discussing cyber-warranties, and whether they are an effective way to transfer risk (as envisioned by Ackerlof’s “market for lemons”) or a marketing trick. The conclusion: Warranties must transfer non-negligible amounts of liability to vendors in order to meaningfully overcome the market for lemons. Our preliminary analysis suggests the majority of cyber warranties cover … Read More “On Cyber Warranties” »
New research from Science: “Civic honesty around the globe“: Abstract: Civic honesty is essential to social capital and economic development, but is often in conflict with material self-interest. We examine the trade-off between honesty and self-interest using field experiments in 355 cities spanning 40 countries around the globe. We turned in over 17,000 lost wallets … Read More “Research on Human Honesty” »
Last week, I hosted the eighteenth Workshop on the Economics of Information Security at Harvard. Ross Anderson liveblogged the talks. Powered by WPeMatico
Today is the second day of the twelfth Workshop on Security and Human Behavior, which I am hosting at Harvard University. SHB is a small, annual, invitational workshop of people studying various aspects of the human side of security, organized each year by Alessandro Acquisti, Ross Anderson, and myself. The 50 or so people in … Read More “Security and Human Behavior (SHB) 2019” »
Really interesting paper calculating the worldwide cost of cybercrime: Abstract: In 2012 we presented the first systematic study of the costs of cybercrime. In this paper,we report what has changed in the seven years since. The period has seen major platform evolution, with the mobile phone replacing the PC and laptop as the consumer terminal … Read More “The Cost of Cybercrime” »
This law review article by Noam Kolt, titled “Return on Data,” proposes an interesting new way of thinking of privacy law. Abstract: Consumers routinely supply personal data to technology companies in exchange for services. Yet, the relationship between the utility (U) consumers gain and the data (D) they supply — “return on data” (ROD) — … Read More “The Concept of “Return on Data”” »
Companies are willing to pay ever-increasing amounts for good zero-day exploits against hard-to-break computers and applications: On Monday, market-leading exploit broker Zerodium said it would pay up to $2 million for zero-click jailbreaks of Apple’s iOS, $1.5 million for one-click iOS jailbreaks, and $1 million for exploits that take over secure messaging apps WhatsApp and … Read More “Prices for Zero-Day Exploits Are Rising” »
Good essay on the inherent vulnerabilities in the cell phone standards and the market barriers to fixing them. So far, industry and policymakers have largely dragged their feet when it comes to blocking cell-site simulators and SS7 attacks. Senator Ron Wyden, one of the few lawmakers vocal about this issue, sent a letter in August … Read More “Security Vulnerabilities in Cell Phone Systems” »