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The economic costs and implications of high-technology hardware theft / James N. Dertouzos, Eric V. Larson, Patricia A. Ebener.
- Format:
- Book
- Author/Creator:
- Dertouzos, James N., 1950-
- Language:
- English
- Subjects (All):
- Computer crimes--Costs.
- Computer crimes.
- Data protection--Costs.
- Data protection.
- High technology industries--Security measures--Costs.
- High technology industries.
- Physical Description:
- 1 online resource (74 p.)
- Edition:
- 1st ed.
- Place of Publication:
- Santa Monica, CA : Rand, 1999.
- Language Note:
- English
- Summary:
- This report presents the results of a study undertaken at the request of the American Electronics Association and a consortium of high-tech industries. Based on a nine-month survey of 95 firms, representing approximately 40 percent of the sales volume for the computer, semiconductor, hard disk drive, and cellular telephone industries, the authors estimate that direct costs of hardware theft are almost $250 million. Indirect costs (such as lost sales and expensive theft-reduction strategies) and industry losses could push total losses past $5 billion. Industry and consumers share the price of high-tech losses, but firms do not always have the economic incentive to invest in appropriate security measures. Since 1996, hardware theft has declined significantly, and recent security measures adopted by individual firms appear to be very cost-effective. The authors recommend more such investments and suggest that the largest payoff will come from anticipating what products are most vulnerable and devising targeted procedures to protect them. In addition, they recommend strengthening collaborative industry-law enforcement efforts to help track the threat, anticipate targets, and identify and disable stolen property.
- Contents:
- ""PREFACE""; ""FIGURES""; ""TABLES""; ""EXECUTIVE SUMMARY""; ""OVERVIEW""; ""STUDY METHODS""; ""SUMMARY OF FINDINGS Direct Costs of Hardware Theft Are Almost 250 Million""; ""Magnitude of Indirect Losses Exceeds That of Direct Losses by a Factor Greater Than Five""; ""Industry Losses Include Cost of Thefts from Business Customers""; ""Total Losses Could Exceed 5 Billion""; ""Industry and Customers Share the Price of High-Tech Losses""; ""Firms Don�t Have the Correct Incentives to Invest in Security Measures""; ""There Has Been a Significant Decline in Hardware Theft""
- ""POLICY IMPLICATIONS FOR FIRMS, INDUSTRY, AND THE PUBLIC SECTOR""""ACKNOWLEDGMENTS""; ""ACRONYMS""; ""INTRODUCTION""; ""BACKGROUND""; ""THE MANY DIMENSIONS OF HIGH-TECH HARDWARE THEFT""; ""METHOD""; ""ORGANIZATION OF THIS REPORT""; ""THE DIRECT COSTS OF HIGH-TECH HARDWARE THEFT""; ""ESTIMATE OF INDUSTRY DIRECT LOSSES""; ""KEY PATTERNS IN THE LOSS DATA""; ""Losses by Value""; ""Losses by Product Category""; ""Thefts by Incident Scenario""; ""Geographic Patterns""; ""Location of Thefts""; ""PREDICTING COMPANY LOSS EXPERIENCES""; ""THE INDIRECT COSTS OF HIGH-TECH HARDWARE THEFT""
- ""DISPLACED DEMAND, OR LOST SALES""""SECURITY INVESTMENTS AND INSURANCE""; ""PRICING INCREASES DUE TO INCREASED COSTS""; ""EFFECTS ON MANUFACTURERS OF THEFTS FROM FINAL BUSINESS CUSTOMERS""; ""SIMULATING THE EFFECTS OF INDIRECT COSTS""; ""SECOND-ORDER EFFECTS OF HARDWARE THEFT""; ""RETURNS ON SECURITY INVESTMENTS""; ""SUMMARY OF FINDINGS AND POLICY CONCLUSIONS""; ""SUMMARY OF FINDINGS""; ""POLICY CONCLUSIONS Policy Implications for Firms""; ""Policy Implications for Industry""; ""Policy Implications for Society""
- ""OVERVIEW OF THEFT INCIDENT REPORTING SYSTEM (TIRS) AND DATA COLLECTION PROTOCOLS""""RECRUITMENT, PARTICIPATION, AND VALIDATION""; ""THE THEFT INCIDENT REPORTING SYSTEM DATA COLLECTION INSTRUMENT""; ""Incident Report Variables and Codes""; ""MERCHANDISE REPORT VARIABLES AND CODES""; ""OPERATIONS""; ""CASE STUDY PROTOCOL""; ""MODELS OF THE INDIRECT COSTS OF THEFT""; ""STATISTICAL ANALYSIS OF LOSS PATTERNS""; ""BIBLIOGRAPHY""
- Notes:
- "Prepared for the International Electronics Security Group and the American Electronics Association."
- "Science and Techology [sic] Program."
- Includes bibliographical references (p. 61-63).
- ISBN:
- 9780833043405
- 0833043404
- 9780585247670
- 0585247676
- OCLC:
- 44962912
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