Skip to main content

Becoming Cybercriminals: Incentives in Networks with Interdependent Security

Incentives in Networks with Interdependent Security

  • Conference paper
  • First Online:
Decision and Game Theory for Security (GameSec 2016)

Part of the book series: Lecture Notes in Computer Science ((LNSC,volume 9996))

Included in the following conference series:

Abstract

We study users’ incentives to become cybercriminals when network security is interdependent. We present a game-theoretic model in which each player (i.e., network user) decides his type, honest or malicious. Honest users represent law-abiding network users, while malicious users represent cybercriminals. After deciding on their types, the users make their security choices. We will follow [29], where breach probabilities for large-scale networks are obtained from a standard interdependent security (IDS) setup. In large-scale IDS networks, the breach probability of each player becomes a function of two variables: the player’s own security action and network security, which is an aggregate characteristic of the network; network security is computed from the security actions of the individual nodes that comprise the network. This allows us to quantify user security choices in networks with IDS even when users have only very limited, aggregate information about security choices of other users of the network.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    For example in [4, 18, 22], cybercrime is approached from value-chain perspective.

  2. 2.

    In other words, the Inada conditions hold.

  3. 3.

    If (52) holds for all \(M\in [1,N-1]\), we let \(\tilde{M}=0\).

References

  1. Acemoglu, D., Malekian, A., Ozdaglar, A.: Network security and contagion. Working Paper 19174, National Bureau of Economic Research. http://www.nber.org/papers/w19174

  2. Anderson, R., Moore, T.: The economics of information security. Science 314(5799), 610–613 (2006)

    Article  Google Scholar 

  3. Anderson, R., Barton, C., Böhme, R., Clayton, R., Van Eeten, M.J., Levi, M., Moore, T., Savage, S.: Measuring the cost of cybercrime. In: Böhme, R. (ed.) The Economics of Information Security and Privacy, pp. 265–300. Springer, Heidelberg (2013)

    Chapter  Google Scholar 

  4. Asghari, H., Van Eeten, M., Arnbak, A., Van Eijk, N.: Security economics in the HTTPS value chain. In: 12th Workshop on the Economics of Information Security (WEIS) (2013)

    Google Scholar 

  5. Aspnes, J., Chang, K., Yampolskiy, A.: Inoculation strategies for victims of viruses and the sum-of-squares partition problem. In: Proceedings of the 16th Annual ACM-SIAM Symposium on Discrete Algorithms (SODA), pp. 43–52. SIAM (2005)

    Google Scholar 

  6. Aspnes, J., Chang, K., Yampolskiy, A.: Inoculation strategies for victims of viruses and the sum-of-squares partition problem. J. Comput. Syst. Sci. 72(6), 1077–1093 (2006)

    Article  MathSciNet  MATH  Google Scholar 

  7. Fultz, N., Grossklags, J.: Blue versus red: towards a model of distributed security attacks. In: Dingledine, R., Golle, P. (eds.) FC 2009. LNCS, vol. 5628, pp. 167–183. Springer, Heidelberg (2009). doi:10.1007/978-3-642-03549-4_10

    Chapter  Google Scholar 

  8. Grossklags, J., Christin, N., Chuang, J.: Secure or insure?: a game-theoretic analysis of information security games. In: Proceedings of the 17th International Conference on World Wide Web (WWW), pp. 209–218. ACM (2008)

    Google Scholar 

  9. Hausken, K.: Income, interdependence, and substitution effects affecting incentives for security investment. J. Account. Public Policy 25(6), 629–665 (2006)

    Article  Google Scholar 

  10. Heal, G., Kunreuther, H.: Interdependent security: a general model. Technical report, Working Paper 10706, National Bureau of Economic Research (2004)

    Google Scholar 

  11. Heal, G., Kunreuther, H.: Modeling interdependent risks. Risk Anal. 27(3), 621–634 (2007)

    Article  Google Scholar 

  12. Honeyman, P., Schwartz, G., Assche, A.V.: Interdependence of reliability and security. In: 6th Workshop on the Economics of Information Security (WEIS) (2007)

    Google Scholar 

  13. Johnson, B., Grossklags, J., Christin, N., Chuang, J.: Uncertainty in interdependent security games. In: Alpcan, T., Buttyán, L., Baras, J.S. (eds.) GameSec 2010. LNCS, vol. 6442, pp. 234–244. Springer, Heidelberg (2010). doi:10.1007/978-3-642-17197-0_16

    Chapter  Google Scholar 

  14. Johnson, B., Laszka, A., Grossklags, J.: The complexity of estimating systematic risk in networks. In: Proceedings of the 27th IEEE Computer Security Foundations Symposium (CSF), pp. 325–336 (2014)

    Google Scholar 

  15. Khouzani, M.R., Sen, S., Shroff, N.B.: An economic analysis of regulating security investments in the internet. In: Proceedings of the 32nd IEEE International Conference on Computer Communications (INFOCOM), pp. 818–826. IEEE (2013)

    Google Scholar 

  16. Knowles, W., Prince, D., Hutchison, D., Disso, J.F.P., Jones, K.: A survey of cyber security management in industrial control systems. Int. J. Crit. Infrastruct. Prot. 9, 52–80 (2015)

    Article  Google Scholar 

  17. Konradt, C., Schilling, A., Werners, B.: Phishing: an economic analysis of cybercrime perpetrators. Comput. Secur. 58, 39–46 (2016). http://www.sciencedirect.com/science/article/pii/s0167404815001844

    Article  Google Scholar 

  18. Kraemer-Mbula, E., Tang, P., Rush, H.: The cybercrime ecosystem: online innovation in the shadows? Technol. Forecast. Soc. Change 80(3), 541–555 (2013). Future-Oriented Technology Analysis. http://www.sciencedirect.com/science/article/pii/S0040162512001710

    Article  Google Scholar 

  19. Kunreuther, H., Heal, G.: Interdependent security. J. Risk Uncertain. 26(2–3), 231–249 (2003)

    Article  MATH  Google Scholar 

  20. Laszka, A., Felegyhazi, M., Buttyan, L.: A survey of interdependent information security games. ACM Comput. Surv. 47(2), 1–38 (2014)

    Article  Google Scholar 

  21. Laszka, A., Johnson, B., Grossklags, J., Felegyhazi, M.: Estimating systematic risk in real-world networks. In: Proceedings of the 18th International Conference on Financial Cryptography and Data Security (FC), pp. 417–435 (2014)

    Google Scholar 

  22. Levchenko, K., Pitsillidis, A., Chachra, N., Enright, B., Félegyházi, M., Grier, C., Halvorson, T., Kanich, C., Kreibich, C., Liu, H., et al.: Click trajectories: end-to-end analysis of the spam value chain. In: Proceedings of the 32nd IEEE Symposium on Security and Privacy (S&P), pp. 431–446. IEEE (2011)

    Google Scholar 

  23. Moscibroda, T., Schmid, S., Wattenhofer, R.: When selfish meets evil: Byzantine players in a virus inoculation game. In: Proceedings of the 25th Annual ACM Symposium on Principles of Distributed Computing (PODC), pp. 35–44. ACM (2006)

    Google Scholar 

  24. Öğüt, H., Menon, N., Raghunathan, S.: Cyber insurance and IT security investment: impact of interdependence risk. In: 4th Workshop on the Economics of Information Security (WEIS) (2005)

    Google Scholar 

  25. Öğüt, H., Raghunathan, S., Menon, N.: Cyber security risk management: public policy implications of correlated risk, imperfect ability to prove loss, and observability of self-protection. Risk Anal. 31(3), 497–512 (2011)

    Article  Google Scholar 

  26. Olson, M.: The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. Yale University Press, New Haven (2008)

    Google Scholar 

  27. Olson, M.: The logic of Collective Action, vol. 124. Harvard University Press, Cambridge (2009)

    Google Scholar 

  28. PricewaterhouseCoopers: Insurance 2020 & beyond: reaping the dividends of cyber resilience (2015). http://www.pwc.com/insurance. Accessed 16 June 2016

  29. Schwartz, G.A., Sastry, S.S.: Cyber-insurance framework for large scale interdependent networks. In: Proceedings of the 3rd International Conference on High Confidence Networked Systems (HiCoNS), pp. 145–154. ACM (2014)

    Google Scholar 

  30. Symantec: Emerging threat: Dragonfly/Energetic Bear - APT group. Symantec Connect. http://www.symantec.com/connect/blogs/emerging-threat-dragonfly-energetic-bear-apt-group. Accessed 16 Feb 2016

  31. Tullock, G.: The welfare costs of tariffs, monopolies, and theft. Econ. Inq. 5(3), 224–232 (1967)

    Article  Google Scholar 

  32. Varian, H.: System reliability and free riding. In: Camp, L.J., Lewis, S. (eds.) Economics of Information Security, pp. 1–15. Springer, New York (2004)

    Chapter  Google Scholar 

Download references

Acknowledgment

This work was supported in part by FORCES (Foundations Of Resilient CybEr-Physical Systems), which receives support from the National Science Foundation (NSF award numbers CNS-1238959, CNS-1238962, CNS-1239054, CNS-1239166).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Aron Laszka .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing AG

About this paper

Cite this paper

Laszka, A., Schwartz, G. (2016). Becoming Cybercriminals: Incentives in Networks with Interdependent Security. In: Zhu, Q., Alpcan, T., Panaousis, E., Tambe, M., Casey, W. (eds) Decision and Game Theory for Security. GameSec 2016. Lecture Notes in Computer Science(), vol 9996. Springer, Cham. https://doi.org/10.1007/978-3-319-47413-7_20

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-47413-7_20

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-47412-0

  • Online ISBN: 978-3-319-47413-7

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics