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Security breaches and liability

http://partners.nytimes.com/library/financial/columns/060100econ-scene.html

[ Gefunden auf K5. Genau mein Reden seit 1870/71... -- KK ]

Managing Online Security Risks

By HAL R. VARIAN

T HE Internet has sometimes been described as a "lab experiment that got loose." It was developed in a sheltered environment of network researchers who knew and trusted each other. But after it escaped from the laboratory in 1995, it found itself in a hostile environment full of unsavory characters.

Recent security incidents like the "I love you" virus and the attacks on major Web sites a few months ago have shown how vulnerable the Internet really is.

Modern cryptography is often hailed as the magic elixir that will make cyberspace safe for commerce. But it will only work if people use cryptographic security features effectively.

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Which brings us back to computer attacks. One reason that computer security is so poor in practice is that the liability is so diffuse. Consider the attacks that took place a few months ago, in which computer vandals took over computers on relatively unprotected university networks and used them to shut down Yahoo and other major Web sites. Although the universities found the takeover of their machines a nuisance, they didn't bear the bulk of the costs of the attack on Yahoo. But if universities bore some liability for the damages to third parties, they would have a stronger incentive to make their networks more secure.

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