Economics and cybersecurity are more closely connected than one might think. Like in any career, economics influences the decisions that businesses and organizations make when managing their operations and employees, but this is especially evident in the field of cybersecurity. Economic theories are developed to illustrate how different economies are managed. The letter provided to us, titled \u201cSAMPLE DATA BREACH NOTIFICATION,\u201d showcases a few of these economic theories.
The first economic theory that can be identified in this letter is the Rational Choice theory, which suggests that people and organizations make decisions based on their best interests. Naturally, it would be in the company\u2019s best interest to prevent future cyberattacks or remove malware from their servers. Therefore, for GlassWasherParts to hire a cybersecurity firm to eliminate the malware and monitor their platform to protect customer information aligns with Rational Choice theory. This benefits both the customer and the business.
The second economic theory derived from this letter is Laissez-Faire economics, similar to Classical economic theory. Both theories advocate that the government should avoid intervening in the economy. However, in laissez-faire theory, the government should always protect people\u2019s natural rights. In this case, GlassWasherParts contacted federal law enforcement to investigate the data breach since customer personal information was stolen. Because law enforcement was involved, this exemplifies laissez-faire theory.
Additionally, this letter presents two examples of social science theories. The first is Reinforcement Sensitivity Theory (RST), which explains how individuals rationalize rewards and risks based on their behavior. Here, the cybercriminals used malware to steal customers\u2019 card information, seeking a high reward with low risk.
The second is Conflict Theory, which describes society functioning through power differences and inequalities. The breach highlights the imbalance between the company and the customer. While the company risks losing trust, the customers are more at risk because their personal information is compromised. This illustrates an imbalance of power and inequality, making Conflict Theory relevant here.<\/p>\n\n\n\n
References<\/strong><\/p>\n\n\n\n Sample Data Breach Notification<\/em>, dojmt.gov\/wp-content\/uploads\/Glasswasherparts.com_.pdf. Accessed 30 July 2025.<\/p>\n","protected":false},"excerpt":{"rendered":" Economics and cybersecurity are more closely connected than one might think. Like in any career, economics influences the decisions that businesses and organizations make when managing their operations and employees, but this is especially evident in the field of cybersecurity. Economic theories are developed to illustrate how different economies are managed. The letter provided to… <\/p>\n