Data breaches and identity theft
This 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.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: 1000 Peachtree St., N.E., Atlanta, Georgia 30309|
Web page: http://www.frbatlanta.org/
More information through EDIRC
|Order Information:|| Email: |
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.:
- 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.
- Charles M. Kahn & James McAndrews & William Roberds, 2005.
"Money Is Privacy,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(2), pages 377-399, 05.
- Charles M. Kahn & William Roberds, 2005.
"Credit and identity theft,"
Conference Series ; [Proceedings],
Federal Reserve Bank of Boston.
- 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.
- Nosal, Ed & Wallace, Neil, 2007.
"A model of (the threat of) counterfeiting,"
Journal of Monetary Economics,
Elsevier, vol. 54(4), pages 994-1001, May.
- 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.
- 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.
- Ricardo de O. Cavalcanti & Ed Nosal, 2007. "Counterfeiting as private money in mechanism design," Working Paper 0716, Federal Reserve Bank of Cleveland.
- Ed Nosal & Ricardo Cavalcanti, 2007. "Counterfeiting as Private Money in Mechanism Design," 2007 Meeting Papers 371, Society for Economic Dynamics.
- 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.
- Edward J. Green & Warren Weber, 1996.
"Will the New $100 Bill Decrease Counterfeiting?,"
9609003, EconWPA, revised 11 Sep 1996.
- Mark N. Greene, 2009. "Divided we fall: Fighting payments fraud together," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 37-42.
- Julia S. Cheney, 2005. "Identity theft: do definitions still matter?," Payment Cards Center Discussion Paper 05-10, Federal Reserve Bank of Philadelphia.
- Julia S. Cheney, 2004. "Identity theft: where do we go from here?," Payment Cards Center Discussion Paper 04-03, Federal Reserve Bank of Philadelphia.
- Kocherlakota, Narayana R., 1998.
"Money Is Memory,"
Journal of Economic Theory,
Elsevier, vol. 81(2), pages 232-251, August.
- Klaus Kultti, 1996. "A monetary economy with counterfeiting," Journal of Economics, Springer, vol. 63(2), pages 175-186, June.
- Philip Keitel, 2008. "Legislative responses to data breaches and information security failures," Payment Cards Center Discussion Paper 08-09, Federal Reserve Bank of Philadelphia.
- Monnet, Cyril, 2005. "Counterfeiting and inflation," Working Paper Series 0512, European Central Bank.
- Antoine Martin & Michael Orlando & David Skeie, 2006.
"Payments network in a search model of money,"
2006 Meeting Papers
580, Society for Economic Dynamics.
- 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 & Roberds, William, 2008. "Optimal pricing of payment services," Journal of Monetary Economics, Elsevier, vol. 55(8), pages 1428-1440, November.
When requesting a correction, please mention this item's handle: RePEc:fip:fedawp:2008-22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elaine Clokey)
If references are entirely missing, you can add them using this form.