Data breaches greatly impact both economic and social landscapes. I will be exploring how a sample data breach notification letter relates to Marxian and Keynesian economic theories, and Sociological and Socio-Technical Systems (STS) theories.

The Marxian economic theory highlights the conflicts and power struggles typical of capitalist societies. In relation to data breaches, large companies hold a lot of personal data for profit, and in case of a breach, financial losses occur for the subjects. In that respect, it fosters economic inequalities, demonstrating how data exploitation of the capitalists affects the vulnerable proletariat, who are more likely to suffer identity theft and hence end up in financially precarious situations.

Keynesian economic theory views government intervention as necessary in order to stabilize an economy. What it does give to this data breach is the fact that there needs to be strong rulemaking and oversight in the new digital economy. Delaying notification because of law enforcement investigations opens up the realization for stricter protection laws and proactive measures to prevent data breaches for economic stability and consumer confidence.

Sociological theories try to interpret behaviors and structures in a society. This could eventually lead to reduced trust in online transactions and, more so, e-commerce sites, thus creating fear in society and changing consumers’ behavior. This would affect the amount of time spent online, which in turn has an economic impact on various businesses. The breach, therefore, calls for social institutions and collective actions on the ground to contain the effect of breaches.

STS theory considers how social and technical factors interact. The technical problems of malware leading to the breach have social implications in terms of a loss of trust and probable identity theft. STS theory requires putting together an approach that joins technical solutions, with improved measures for cybersecurity, with social interventions in the form of educating consumers. This letter presents recommendations for self-protection, underpinning a case for integrated risk management strategy in the digital age.

This sample data breach notification letter evidences a confluence of economic and social complexity. Marxian and Keynesian theories put central emphasis on power and regulatory problems, while sociological and socio-technical systems theories emphasize societal impact and holistic modes of solution. These theories help to explain the broader implications stemming from data breaches and the obvious need for more holistic strategies toward the protection of personal information in our digital world.

Reference

Dianizami. (2023, June 7). Unveiling the Role of Social Science in Cybersecurity. Medium. https://medium.com/@dianislami96/unveiling-the-role-of-social-science-in-cybersecurity-76b6ac09e26b

Platt, M. (2021, December 14). Social Practice Theory and Cyber Security – Mario Platt – Medium. Medium. https://medium.com/@marioplatt/social-practice-theory-and-cyber-security-a59364c8e732 

READ: Smith, Marx, and Keynes (article) | Khan Academy. (n.d.). Khan Academy. https://www.khanacademy.org/humanities/big-history-project/acceleration/changing-economies/a/smith-marx-and-keynes

Glasswasherparts.com. (2017, February 6). Notice of Data Breach [PDF document]. Provided by Glasswasherparts.com.