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Title:Empirical analysis of data breach litigation
Author(s):Romanosky, Sasha; Hoffman, David; Acquisti, Alessandro
Subject(s):data breach litigation
empirical analysis
information policy
information systems
research methods
social and community informatics
quantitative data analysis
identity theft
Abstract:The surge in popularity of social media, cloud computing, and mobile services has created an unprecedented opportunity for the collection, use and sale of personal consumer information. While these services clearly provide many benefits to producers and consumers, individuals suffer harm when their personal information is lost, stolen, or improperly accessed, causing emotional distress or monetary damage from fraud and identity theft.1 Since 2005, an estimated 543 million records have been lost from over 2,800 data breaches,2 and identity theft caused $13.3 billion in consumer financial loss in 2010 (Bureau of Justice, 2011). In response, federal legislators have introduced numerous bills that define appropriate business practices regarding the collection and protection of consumer information, 3 and federal regulators have drafted privacy frameworks for consumer data protection (Department of Commerce, 2010; Federal Trade Commission, 2010). For instance, the Department of Commerce inquired: “should baseline commercial data privacy legislation include a private right of action?” (Department of Commerce, 2010, 30). At issue is the degree to which federal consumer litigation deters privacy harms, or whether a new federal privacy statute is required. However, little is known about the trends in data breach litigation – which breaches are litigated and which are not, and with what outcomes. Current scholarship examines only a narrow subset of lawsuits, usually focusing on high-profile cases or those with published opinions. And so, to our knowledge, no empirical research involving data breach lawsuits has been conducted. The purpose of this manuscript is to explore two questions. First, what kinds of data breaches are being litigated in federal court, and why? Second, what kinds of data breach lawsuits are settling, and why?
Issue Date:2013-02
Citation Info:Romanosky, S., Hoffman, D., & Acquisti, A. (2013). Empirical analysis of data breach litigation. iConference 2013 Proceedings (pp. 124-137). doi:10.9776/13162
Genre:Conference Paper / Presentation
Publication Status:published or submitted for publication
Peer Reviewed:is peer reviewed
Rights Information:Copyright © 2013 is held by the authors. Copyright permissions, when appropriate, must be obtained directly from the authors.
Date Available in IDEALS:2013-01-30

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