Data breaches and identity theft
AbstractThis paper presents a monetary-theoretic model to study the implications of networks' collection of personal identifying data and data security on each other's incidence and costs of identity theft. To facilitate trade, agents join clubs (networks) that compile and secure data. Too much data collection and too little security arise in equilibrium with noncooperative networks compared with the efficient allocation. A number of potential remedies are analyzed: mandated limits on the amount of data collected, mandated security levels, reallocations of data-breach costs, and data sharing through a merger of the networks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 2008-22.
Date of creation: 2008
Date of revision:
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kahn, Charles M. & Roberds, William, 2008.
"Credit and identity theft,"
Journal of Monetary Economics,
Elsevier, vol. 55(2), pages 251-264, March.
- Antoine Martin & Michael Orlando & David Skeie, 2006.
"Payment networks in a search model of money,"
263, Federal Reserve Bank of New York.
- Edward J. Green & Warren Weber, 1996.
"Will the New $100 Bill Decrease Counterfeiting?,"
9609003, EconWPA, revised 11 Sep 1996.
- Gabriele Camera & Yiting Li, 2008. "Another Example of a Credit System that Co-Exists with Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(6), pages 1295-1308, 09.
- Julia S. Cheney, 2005. "Identity theft: do definitions still matter?," Payment Cards Center Discussion Paper 05-10, Federal Reserve Bank of Philadelphia.
- Philip Keitel, 2008. "Legislative responses to data breaches and information security failures," Payment Cards Center Discussion Paper 08-09, Federal Reserve Bank of Philadelphia.
- Charles M. Kahn & James McAndrews & William Roberds, 2004.
"Money is privacy,"
2004-18, Federal Reserve Bank of Atlanta.
- Narayana R. Kocherlakota, 1996.
"Money is memory,"
218, Federal Reserve Bank of Minneapolis.
- Ricardo Cavalcanti & Ed Nosal, 2007.
"Counterfeiting as private money in mechanism design,"
0716, Federal Reserve Bank of Cleveland.
- Ricardo Cavalcanti & Ed Nosal, 2011. "Counterfeiting as Private Money in Mechanism Design," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43, pages 625-636, October.
- Ed Nosal & Ricardo Cavalcanti, 2007. "Counterfeiting as Private Money in Mechanism Design," 2007 Meeting Papers 371, Society for Economic Dynamics.
- Klaus Kultti, 1996. "A monetary economy with counterfeiting," Journal of Economics, Springer, vol. 63(2), pages 175-186, June.
- Julia S. Cheney, 2004. "Identity theft: where do we go from here?," Payment Cards Center Discussion Paper 04-03, Federal Reserve Bank of Philadelphia.
- Mark N. Greene, 2009. "Divided we fall: Fighting payments fraud together," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 37-42.
- Stacey L. Schreft, 2007. "Risks of identity theft: Can the market protect the payment system?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 5-40.
- Keith B. Anderson & Erik Durbin & Michael A. Salinger, 2008. "Identity Theft," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 171-192, Spring.
- Monnet, Cyril, 2005. "Counterfeiting and inflation," Working Paper Series 0512, European Central Bank.
- Prescott, Edward C & Boyd, John H, 1987. "Dynamic Coalitions: Engines of Growth," American Economic Review, American Economic Association, vol. 77(2), pages 63-67, May.
- Kiyotaki, Nobuhiro & Wright, Randall, 1989. "On Money as a Medium of Exchange," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 927-54, August.
- William Roberds & Stacey L. Schreft, 2009. "Data security, privacy, and identity theft: The economics behind the policy debates," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 22-30.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger).
If references are entirely missing, you can add them using this form.