Financial Analysis Of Information Security Breaches*

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Faramarz Damanpour
M. Hossain Heydari

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Abstract

Each year, due to hacker attacks and virus infections billions of dollars are wasted. The impacts are globally felt and are not restricted to a single industry or agency, but it includes academia, individual, industry, and government agencies. In fact, hackers and viruses are becoming more and more sophisticated and are increasingly harder to detect. In this paper an attempt has been made to present Internet security and vulnerability, security policies, financial impacts, remedies, and a model to evaluate the opportunity costs of variables involve in security breaches.

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