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Cybercrime and Punishment

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  • Ye Hong
  • William Neilson

Abstract

This paper models cybercrime by adding an active victim to the seminal Becker model of crime. The victim invests in security that may protect her from a cybercrime and, if the cybercrime is thwarted, generate evidence that can be used for prosecution. Successful crimes leave insufficient evidence for apprehension and conviction and, thus, cannot be punished. Results show that increased penalties for cybercriminals lead them to exert more effort and make cybercrimes more likely to succeed. Above a threshold they also lead victims to invest less in security. It may be impossible to deter cybercriminals by punishing them. Deterrence is possible, but not necessarily optimal, through punishing victims, such as data controllers or processors that fail to protect their networks.

Suggested Citation

  • Ye Hong & William Neilson, 2020. "Cybercrime and Punishment," The Journal of Legal Studies, University of Chicago Press, vol. 49(2), pages 431-466.
    • Handle: RePEc:ucp:jlstud:doi:10.1086/711715
    DOI: 10.1086/711715
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