Effectiveness of Data Breach Legislation, 2005-2012
Dwyer, Caroline Elizabeth
Jensen, Micah K
This thesis examined the effectiveness of mandatory data breach reporting legislation and the penalties said laws sometimes impose for failing to report a data breach. I examined data breach data gathered for 2005-2012 and the relevant state legislation using state-year fixed effects regression. My analysis suggested that the existence of a mandatory data breach reporting law is associated with higher numbers of reported breaches. Also, reporting laws which impose a penalty for not reporting may be more effective than laws which don't, but the effect of the penalty depends on the amount of the penalty itself. Penalties which are too low may not adequately compel organizations which have been attacked to report the data breach.
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