1. The Uneasy Case for a Ransom Tax
- Author
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Bernold Nieuwesteeg, Michael Faure, RS: FdR, Maastr Inst for Transnat Legal Research, RS: FdR IC Aansprakelijkheid, RS: FdR IC Milieurecht, RS: FdR Institute M-EPLI, and RS: FdR Institute METRO
- Subjects
cybersecurity ,ransomware ,cyber insurance ,victim ,private ,cyber risk ,taxation ,Safety Research ,Law - Abstract
The goal of our paper is to demonstrate the potential effects of a tax on paying a ransom on the incentives of stakeholders involved: both the perpetrators (the attackers placing the ransomware) as well as the potential victim. We do think that there is a case for a ransom tax, but we do also realise that it is not easy to make that case, and hence we express this doubt in our title. A tax could stimulate ex ante cybersecurity and also (when price elasticity is not too low) reduce ex post ransom payments. In addition, a tax in combination with a smartly designed subsidy could have benefits.
- Published
- 2023