There are 3 economic theories mentioned in module 11 that work together and apply to this letter. These theories are Laissez-fare economic theory, rational choice, and Marxian economic theory. The rational choice theory states that businesses make choices that occur in their best interest. The Marxian economic theory lists that those with power exploit those without for economic gain. Lastly, the laissez-fare economic theory suggests that governments focus more on responding to attacks instead of prevention. There are also 3 social science theories that can apply such as the neutralization theory, reinforcement sensitivity, and relativism.
Economic theories explanation:
The company sending the letter and the third party can be seen using the rational choice theory to cover itself and its reputation as this attack occurred for months and then waited on the government to investigate before alerting customers. Over a year had passed since the first intrusion occurred and the breach letter was sent. Marxian economic theory is relevant as the company breached had power and while its reputation was affected the most damage occurred to the consumers. The consumers suffered from the attack with their payment and privacy information being stolen, but were last to know and due to the year gap, there could been major repercussions that affected those consumers as they do not have the power and money the company has. The final economic theory that can be applied can be seen by some as self-explanatory in this letter. If the letter is accurate, the government responded after the incident and also had the company wait to release a statement. This highlights fixing the issue for the company instead of preventing delays with consumer reporting to banks and credit reporters.
Social Science theories explanation:
Relativism is the principle that all things are connected. This principle is displayed by the third-party agency being attacked which affects the company sending the letter. A study on reinforcement sensitivity found that those who commit cybercrimes typically have high reward interest. The attacks were reported to have gotten payment methods used in the February 2016 – December 2016 time frame and stored information from previous purchases. This attack length and what was stolen can equal a very large profit and could be what interested the offenders in carrying out this breach. Lastly, one of the five types of neutralization is denial of responsibility. The first perspective this author noticed was how the company blames the government for the delay of notice and blames third-party companies for the breach, but states how they are willing to work with law enforcement to help the investigation and will be consistently monitoring for protection. The company seems to place the blame on others and does not take any blame. By offering professional monitoring and willingness to work with law enforcement they are portraying themselves as a hero and protecting their public view.