Cybersecurity Breaches Research Articles

Insider trading ahead of cyber breach announcements

Stock market reactions to cybersecurity breach announcements are generally negative. We find significant evidence of opportunistic insider trading, with insiders saving an average of $35,009 due to timely selling in the three months before the announcement of a cybersecurity breach. Late filing violations by insiders are more likely to occur near the announcement of a cyber breach. The bulk of opportunistic trading tends to occur 55–72 days before the public announcement. The results lend support to the U.S. Security and Exchange Commission’s recently announced goal of tightening restrictions on insider trading ahead of cyber breach announcements.

Cybersecurity: Protecting Networks, Systems, and Data from Cyberattacks

The prevalence of cyber risks presents an ever-increasing threat to the security of networks, systems, and sensitive data in an era where digital connectivity rules. This study explores the complex field of cybersecurity with the goal of offering a thorough grasp of the tactics used to defend against cyberattacks.The first section of the study examines the historical background of cybersecurity, showing how it developed from simple computer security measures to the complex array of modern threats. The focus is on describing the wide range of cyberthreats, such as ransomware, phishing, and malware, and illustrating how they appear and what happens in the real world. A large amount of research is devoted to analyzing the vulnerabilities present in operating systems, networks, and data storage, providing insight into the complex interactions between technological flaws and human variables. The paper explores the role of human error as a crucial trigger for cybersecurity breaches in addition to clarifying the various attack surfaces.

Public Perception of the Influence of Digital Media on Cyber Security in Nigeria

The objective of this study was to examine public perception of the influence of digital media on cyber security. The survey research design was used for the study. A total of 384 respondents were selected from Enugu State to provide data for the study. In the sample, only people with background on issues related to cyber security were included. The questionnaire served as the instrument for data collection. Data were analyzed using both descriptive and inferential statistics. It was found that the sample studied reported that digital media are significantly and negatively affecting cyber security breaches, and promoting cyber crimes. The result of the hypotheses tested revealed a significant association between digital media and cyber security breaches and digital media and cybercrime. The practical, theoretical and scholarly implications of the results have been explored.

Cybersecurity Capacity: Does It Matter?

Abstract National cybersecurity capacity building involves the development of managerial, technical, social, legal, policy, and regulatory initiatives by a growing ecology of actors to enhance the resilience of nations to cybersecurity breaches, cybercrime, and terrorism. Capacity building is therefore resource intensive, requiring attention across sectors of society, ranging from governments to Internet users. However, it is difficult to justify commitments to capacity building when the benefits of building national cybersecurity capacity are largely based on logical reasoning, limited case studies, anecdotal evidence, and expert opinion rather than systematic empirical evidence. To explore the value of capacity building, this article reports on the early phase of a systematic effort to bring together cross-national data from multiple sources to examine whether indicators related to the cybersecurity capacity of a nation help explain the experiences of Internet users—one of the final payoffs of cybersecurity capacity building.

The Impact of Age, Gender, and Educational level on the Cybersecurity Behaviors of Tertiary Institution Students: An Empirical investigation on Malaysian Universities

A lot of cybersecurity breaches occur due to human errors. Tertiary institutions need to enhance students’ cybersecurity awareness and capabilities, hence promoting safe cybersecurity behaviors. Socio-psychological factors affects students’ cybersecurity behaviors. We explore to what extent age, gender and educational level, plays a role in mediating the factors affecting tertiary institution students’ cybersecurity behaviors. A cross-sectional survey was conducted among 340 students and Structural Equation Modelling was employed for evaluating impacts. Data analysis was conducted via SPSS (V.25). Results show that students cybersecurity behaviors varies based on Age for factors such as: Perceived Severity, Peer Behavior, Familiarity with Cyber Threats, Response Efficacy and Perceived Vulnerability. Gender effects existed in Security Self Efficacy, Computer Skills, Cybersecurity Behaviors, Perceived Severity, and little effects in Prior Experiences with Computer Security Practices. Educational level differences existed in Cues to Action and Familiarity with Cyber-Threats. Age, gender and educational level are important factors in mediating students’ cybersecurity behaviors. Practically, our findings can instigate the need for specific/focused cybersecurity training and interventions for students in the tertiary institutions. It can also help cybersecurity training units in the tertiary institutions to target very vital components of cybersecurity behavior model, hence improving the cybersecurity behaviors of the students.

Cybersecurity Capacity: Does It Matter?

Abstract National cybersecurity capacity building involves the development of managerial, technical, social, legal, policy, and regulatory initiatives by a growing ecology of actors to enhance the resilience of nations to cybersecurity breaches, cybercrime, and terrorism. Capacity building is therefore resource intensive, requiring attention across sectors of society, ranging from governments to Internet users. However, it is difficult to justify commitments to capacity building when the benefits of building national cybersecurity capacity are largely based on logical reasoning, limited case studies, anecdotal evidence, and expert opinion rather than systematic empirical evidence. To explore the value of capacity building, this article reports on the early phase of a systematic effort to bring together cross-national data from multiple sources to examine whether indicators related to the cybersecurity capacity of a nation help explain the experiences of Internet users—one of the final payoffs of cybersecurity capacity building.

Internal Motivators for the Protection of Organizational Data

ABSTRACTThe purpose of this paper is to investigate the effect of internal motivators (psychological ownership, perceived control, and self-efficacy) on employees' intention to protect organizational data. The threat of cybersecurity breaches is increasing, as are the realization of cybersecurity breaches and the subsequent loss of data. While information security policies increase employees' intentions to protect organizational data, they do not guarantee employee compliance. Results indicate that self-efficacy is associated with perceived control, which, in turn, is associated with perceived psychological ownership of organizational data. Furthermore, self-efficacy and psychological ownership are both associated with an increase in intention to protect organizational data.

The Impact of Reported Cybersecurity Breaches on Firm Innovation

ABSTRACTMany firms cite cyber risk as a primary risk factor due to the increase in cybersecurity breach (CSB) incidents. Existing research focuses on the negative, short-term impacts from CSBs, but the longer-term impact is still unknown. Our study investigates firms' levels of innovation following a CSB as an important determinant of firm growth and profitability. Examining reported breaches from 2005–2014, we find a 10 percent decline in research and development spending in the year following a CSB. Further investigation indicates that firms for which R&D is not the primary business model drive the results. We also provide evidence of a decrease in patents two years after a breach, an increase in cash holdings in the year after the breach, and a decrease in investment efficiency four years following the breach. Our aggregate results suggest that CSBs are associated with future strategic decisions involving firm-level innovation and investment decisions.Data Availability: Data are available from the public sources cited in the text.

Do Voluntary Disclosures Mitigate the Cybersecurity Breach Contagion Effect?

ABSTRACTIn this study, we investigate the negative impact of a cybersecurity breach on a bystander (i.e., non-breached) firm in the same industry, referred to as investment contagion effects, and whether voluntary cybersecurity disclosures mitigate these effects. Using an experiment with nonprofessional investors, we provide strong evidence of investment contagion effects. However, we also find a portion of investor participants perceive the breach as positive news for the bystander firm, a phenomenon known as competition effects. Our evidence suggests contagion effects are dominant over competition effects, and cybersecurity disclosures provided prior to the breach announcement attenuate contagion effects. Additionally, we find cybersecurity disclosures provided subsequent to the breach announcement can reduce the magnitude of investment contagion effects. Our study informs standard setters and firms as we find some evidence that voluntary disclosures are effective in lessening investment contagion effects.

What the hack: Systematic risk contagion from cyber events

This paper examines the impact of cybercrime and hacking events on equity market volatility across publicly traded corporations. The volatility influence of these cybercrime events is shown to be dependent on the number of clients exposed across all sectors and the type of the cyber security breach event, with significantly large volatility effects presented for companies who find themselves exposed to cybercrime in the form of hacking. Evidence is presented to suggest that corporations with large data breaches are punished substantially in the form of stock market volatility and significantly reduced abnormal stock returns. Companies with lower levels of market capitalisation are found to be most susceptible. In an environment where corporate data protection should be paramount, minor breaches appear to be relatively unpunished by the stock market. We also show that there is a growing importance in the contagion channel from cybersecurity breaches to markets volatility. Systematic weakness in the existent mechanisms for cybersecurity oversight and enforcement could be improved through the ring-fenced incentivisation of both current and ex-hackers. Their expertise is central to the identification of weak corporate cybersecurity practices.

Examining the relationship between formal RMF training and perceptions of RMF effectiveness, sustainability and commitment in RMF practitioners

The US Federal Information Systems Modernization Act (FISMA) included a mandate for the National Institute of Standards and Technology (NIST) to modernise and create new methods of strengthening the US Government’s cyber security posture. NIST answered this call with the creation of the risk management framework (RMF). RMF has received criticism and has been viewed as ineffective and a potential failure. This quantitative research investigated the relationship between receiving formal RMF training and perceptions of RMF effectiveness, RMF commitment and RMF sustainability. The research proposed that the receipt of formalised RMF training would increase the perceptions of RMF effectiveness, RMF commitment and RMF sustainability in RMF practitioners. A convenience sample of 81 RMF practitioners responded to an online survey assessing perceived competence of RMF effectiveness, RMF commitment and RMF sustainability as well as the amount of formal RMF training hours they had received. The data was analysed utilising statistical methods of descriptive statistics, analysis of variance (ANOVA) and Pearson’s correlations. Based on the results of this study, a significant, positive relationship exists between the receipt of formalised RMF training and perceptions of RMF effectiveness. Statistical significance can be seen in ANOVA tests where there was a significant difference in the mean effective perceived competency scales (PCS) scores among those with varied levels of formal RMF training (MS = 5.388), (F [2,78] = 3.645, p < .05). Pearson’s correlation also indicated that there was a significant positive association with the effective PCS score and the amount of training received category (r = .253, n = 81, p = .023). Understanding the relationship between perceptions of RMF effectiveness and the receipt of formalised RMF training may be helpful in driving effective RMF implementation throughout the US Government and contractor community, minimising the likelihood that US Government systems are compromised via cyber security breaches.

The Relevance and Applicability of Cybersecurity Laws with Regard to Data Storage on Board Satellites and on the Ground

Cybersecurity is a growing concern in the space sector, with satellite transmission interference and unauthorized access to data being the most common threats against space systems. This article will focus on the latter and on the cybersecurity laws that, albeit in their infancy, aim at protecting against such risks. In particular, this article will assess whether the existing cybersecurity regulations are pertinent to the protection of data stored onboard satellites in outer space and on ground facilities. It will specifically refer to the context of the EU Directive on Security of Network and Information Systems (EU NIS Directive), the US Internet of Things Cybersecurity Improvement Act (IoT Cybersecurity Act), and the Tallinn Manual on the International Law Applicable to Cyber Operations (Tallinn Manual 2.0), so as to assess their connection to the current methods of data storage. Towards this end, the relevance of the said laws and their competence in ensuring adequate standards of protection against cyber threats and security breaches will be argued. On the one hand, cybersecurity regulations are designed to safeguard the integrity of data systems from external tampering. On the other hand, it has not yet been established whether the scope of these laws extend outside the territorial sovereignty of States or in outer space, all while cyber operations in the framework of space activities may appear in various forms. The purpose of this article is to determine whether the regulatory regime in force is able to address the challenges arising from the increasing connectivity of satellites and satellite systems, which make them vulnerable to cybersecurity risks. In doing so, it will mainly focus on the notions of an information system, service provider, and cyber threat within the structure of space data systems.

Cybersecurity Investment Allocation for a Multi-Branch Firm: Modeling and Optimization

Network interconnection and information sharing among firms and their departments expose them to cybersecurity breaches. Traditional cybersecurity studies have paid little attention to the reallocation of security investment within firms. This paper proposes a mathematical model for optimal allocation of cybersecurity investment among headquarters and branches with budget constraints. The differences in size of information sets and system interconnection have been taken into account. The responses of optimal allocation to internal and external factors, such as the portion of branch information set, the propagation probability, the budget constraints, and the intrinsic vulnerability, have been studied in deep both theoretically and numerically. Analysis results indicate that the group will give priority to protecting headquarters when the total budget is small and intrinsic vulnerability is high. The security investment allocated to each branch increases with budget, propagation probability and portion of information set, but never exceeds 1 / ( n + 1 ) of total budget. Numerical simulations also verify that security information sharing among headquarters and branches can help improve the efficiency of security investment in the whole system. Furthermore, the findings of this paper will draw attention to the reallocation of cybersecurity investment within a business group and help cybersecurity managers to develop investment allocation strategies and policies.

Building a culture of supply chain transparency and real-time data : Adapting to the living supply chain

Many organisations feel uncomfortable with the idea of visibility as a transformative element that will drive supply chain improvements. While the concept of velocity seems to be widely adopted, there are a great number of excuses around why visibility is not possible within their industry, organisation or business function. Part of this hesitancy may have to do with the massive hype cycle that exists today around ‘big data’, ‘digitisation’, the Internet of Things (IoT) and artificial intelligence (AI). These terms have proliferated to the point where executives are effectively paralysed, not knowing how to proceed and unsure of how to justify investments due to the lack of any return on investment (ROI). Further, the challenges of data governance and integration are causing many executives to halt in their tracks, as the idea of ‘pumping our bad data through the Internet’ is cause for consternation. For instance, a group of pharma executives had a major discussion and were unsure if good manufacturing practices (GMP) data could be shared, if it had not yet been validated. The challenge for many of these organisations is that there is no clear roadmap for adoption of real-time data transformation. The technology is not the challenge — the real issue has to do with the shift in mindset, change management and governance that exists as data becomes more transparent across multiple tiers of suppliers and customers. The legal implications are also causing uncertainty, as are the ramifications of exposing one’s data in the face of recent cyber security breaches. The issue of exposing one’s data to potential legal issues is also a consideration. Most importantly, executives do not have a clear picture of the shift in skill sets, talent, capabilities and new job roles that will be affected by a broader set of technological shifts towards digitisation and real-time living supply chains. This paper proposes that several key cultural components of an organisation are required to adopt to a digital ecosystem.

Cybersecurity breaches and cash holdings: Spillover effect

AbstractThis paper shows that firms significantly increase cash holdings after they have experienced a cybersecurity attack, and this behavior persists for years. A cyberattack increases cash holdings from a base level of 23% of assets to 26.87%. Similar firms, defined by industry and geographical proximity also increase their cash holdings. Suppliers of attacked firms are also affected. Overall, the results of this study indicate that the detrimental effects of a cybersecurity breach are not isolated to the attacked firms, and peer firms are quick to follow in taking precaution.

Assessing the Value of Executive Leadership Coaches for Cybersecurity Project Managers

With the complex nature of impacts of cybersecurity breaches, it is critical that organizational have cybersecurity project managers that can make sound managerial and leadership decisions. Often cybersecurity project managers act quickly with managerial decisions at work. When time is of the essence, strategic thinking, strategic communication, and strategic decision making are critical to organizational effectiveness and productivity. Decision making and strategic communications are just a few skills that executive leadership coaches can teach. This article explores the values and potential benefits of executive coaching as a leadership development tool for information technology and cybersecurity project managers.

Understanding the gap between perceived threats to and preparedness for cybersecurity

This study aims to investigate the influences on perceived threat to and preparedness for cybersecurity, as well as what causes the gap between these two perceptions regarding public infrastructure and business systems in the United States. To that end, the study considers Cybersecurity Survey data from the Pew Research Center. Using ordered logistic regression analysis, the significant determinants of perceived threat and preparedness are determined. Personal experience in and awareness of cybersecurity breaches increased the level of perceived cyber threats, but reduced that of perceived preparedness. In contrast, confidence in organizational cybersecurity capacity, social trust, and liberalism exhibited opposite trends regarding these two outcomes. By employing multinomial logistic regression analysis, the study investigates the unexplored relationships of various theoretical determinants with the gap between perceived threat and preparedness. The analysis results show that the effects of these determinants differ with the type of gap. The determinants for perceived overperformance (good preparedness relative to low threat) and perceived underperformance (poor preparedness relative to high threat) are significantly different from those for perceived fair performance (matching levels of threat and preparedness).

A dataset to facilitate automated workflow analysis.

Data sets that provide a ground truth to quantify the efficacy of automated algorithms are rare due to the time consuming and expensive, although highly valuable, task of manually annotating observations. These datasets exist for niche problems in developed fields such as Natural Language Processing (NLP) and Business Process Mining (BPM), however it is difficult to find a suitable dataset for use cases that span across multiple fields, such as the one described in this study. The lack of established ground truth maps between cyberspace and the human-interpretable, persona-driven tasks that occur therein, is one of the principal barriers preventing reliable, automated situation awareness of dynamically evolving events and the consequences of loss due to cybersecurity breaches. Automated workflow analysis—the machine-learning assisted identification of templates of repeated tasks—is the likely missing link between semantic descriptions of mission goals and observable events in cyberspace. We summarize our efforts to establish a ground truth for an email dataset pertaining to the operation of an open source software project. The ground truth defines semantic labels for each email and the arrangement of emails within a sequence that describe actions observed in the dataset. Identified sequences are then used to define template workflows that describe the possible tasks undertaken for a project and their business process model. We present the overall purpose of the dataset, the methodology for establishing a ground truth, and lessons learned from the effort. Finally, we report on the proposed use of the dataset for the workflow discovery problem, and its effect on system accuracy.

Should executives go to jail over cybersecurity breaches?

ABSTRACTThe Consumer Data Protection Act, a new bill introduced by Senator Ron Wyden, is proposing “jail time of up to 20 years for executives who knowingly sign off on incorrect or inaccurate annual certifications of their companies’ data-security practices.” The bill also recommends that companies be fined “up to 4 percent of their annual revenue.” While the critics consider the penalties too harsh and severe, the proposed legislation reflects two key realities – a) active involvement and commitment of senior management is essential to achieving a high level of cybersecurity preparedness; and b) legislation and fear of severe penalties (such as Sarbanes-Oxley Act of 2002 and European Union’s General Data Protection Regulation) is often necessary to motivate desired organizational behavior. In an increasingly digital ecosystem characterized by high levels of electronic connectivity, vulnerability to cyberattacks is growing. Organizations are in a perpetual state of breach with rapidly expanding attack surfaces and evolving threat vectors. Protecting confidential data and related digital assets is becoming critical to survival and success. Senior management must come to terms with this new business reality and give strategic priority to cybersecurity preparedness and investments. Research finds active involvement of top management in cyber risk mitigation initiatives to be a critical success factor and best practice. The onus is also on senior management to create a high-performance security culture founded on three key cornerstones – commitment, preparedness, and discipline. They also must lead the charge in establishing a cybersecurity governance structure characterized by joint ownership, responsibility, and accountability.

How Perceived Benefits and Barriers Affect Millennial Professionals’ Online Security Behaviors

Over the past decade, there has been an increase in cybersecurity breaches through identity theft, hacking, phishing attacks, and the use of malware such as viruses, worms, or trojans. The breaches have triggered an increase in investment in information security in organizations. As technology continues to improve, the risks of having cybersecurity incidents also increase. Cybersecurity firms reported that in 2016, there were 1209 total breaches with 1.1 billion identities exposed. Most experts agree that human vulnerability is a significant factor in cybersecurity. Most issues related to advanced threats come from human nature and ignorance. For the study, the researcher examined the relationship between Millennial professionals’ perceptions of cybersecurity risks and users’ online security behaviors. The study focused on two elements of perception which are perceived benefits and perceived barriers. The researcher administered a survey to 109 participants randomly selected among Survey Monkey audience members. The Spearman’s correlation test performed supported the analysis of the strength of the relationship and the level of significance between each of the independent variables and the dependent variable. The results from the statistical test provided enough evidence to reject each of the null hypothesis tested in this study. There were significant correlations between each of the independent variables, Perceived Benefits (PBE) and Perceived Barriers (PBA) and the dependent variable Online Security Behaviors (OSB).