Economics

Goals

  • Apply an economic lens to security
  • Use economics to better understand user behavior
  • Use economics to better understand attacker behavior

Overview

  • Why can economics help us understand security?
  • What is the standard economic model for individuals?
    • How does reality differ from this model?

Understanding Users

  • What are some examples of security advice that users appear to ignore?
  • What are the direct benefits and direct costs to users of following security advice?
  • How should we evaluate the these costs and benefits across the entire population?
  • What threshold is needed for the benefit of advice to outweigh the cost?
  • How much does user effort cost?
    • How can we estimate it?

Understanding Adversaries

Nigerian Scammers

  • Where do most Nigerian-scam emails say they are from?
  • What does it mean that viability is not observable?
  • From an attacker’s standpoint, what is a false positive? A false negative?
  • What does a ROC curve show?
  • How do we calculate an optimal operating point?
  • What are the implications when victim density is low?
  • Why is it difficult to achieve very high classifier accuracy?
  • Why do Nigerian scammers say they are from Nigeria?

Spam Economy

  • How do the costs of spam compare to the benefits to the spammers?
  • What are the various elements of the spam value chain?
  • What is an affiliate?
  • How can the spam economy be studied?
    • What makes such a study challenging?
  • How can we identify bottlenecks in the value chain?
    • What criteria should we use?
    • What proved to be the weakest link?