Cyber assets at risk: monetary impact of U.S. personally identifiable information mega data breaches

Omer Ilker Poyraz (), Mustafa Canan, Michael McShane, C. Ariel Pinto and T. Steven Cotter
Additional contact information
Omer Ilker Poyraz: Old Dominion University
Mustafa Canan: Naval Postgraduate School
Michael McShane: Old Dominion University
C. Ariel Pinto: Old Dominion University
T. Steven Cotter: Old Dominion University

The Geneva Papers on Risk and Insurance - Issues and Practice, 2020, vol. 45, issue 4, No 4, 616-638

Abstract: Abstract This study investigates various factors that can affect the monetary impact of data breaches on companies. This paper introduces a model for the total cost of a mega data breach based on a data set created from multiple sources that categorises stolen data for U.S. residents as personally identifiable information (PII) and sensitive personally identifiable information (SPII). We use a rigorous stepwise regression analysis that includes polynomial and factorial multilevel effects of the independent variables. There are three significant findings. First, our model finds a significant relation between total data breach cost and revenue, the total amount of PII and SPII, and class action lawsuits. Second, the categorisation of personal information as sensitive and non-sensitive explains the cost better than previous work. Finally, all of the independent variables demonstrate multilevel factorial interactions.

Keywords: Data breach; Cyber risk; Economics of cybersecurity; Cyber insurance (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pal:gpprii:v:45:y:2020:i:4:d:10.1057_s41288-020-00185-4

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DOI: 10.1057/s41288-020-00185-4

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