Abstract
In this paper we present a cost model to analyze impacts of Internet malware in order to estimate the cost of incidents and risk caused by them. The model is useful in determining parameters needed to estimate recovery efficiency, probabilistic risk distributions, and cost of malware incidents. Many users tend to underestimate the cost of curiosity coming with stealth malware such as email-attachments, freeware/shareware, spyware (including keyloggers, password thieves, phishing-ware, network sniffers, stealth backdoors, and rootkits), popups, and peer-to-peer fileshares. We define two sets of functions to describe evolution of attacks and potential loss caused by malware, where the evolution functions analyze infection patterns, while the loss functions provide risk-impact analysis of failed systems. Due to a wide range of applications, such analyses have drawn the attention of many engineers and researchers. Analysis of malware propagation itself has little to contribute unless tied to analysis of system performance, economic loss, and risks.
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