The Role of Economic Incentives and Disincentives in Deterring Insider Hacking Behavior

The objective of the research in this article is to investigate the influence of economic incentives, income levels, interest in white-hat capabilities, and perceptions of being apprehended on the willingness to violate privacy regulations. The research model was developed by drawing on the economics of crime literature, prospect theory, and the emerging capability, opportunity, and motivation behavioral model. This study involved a sample of 523 people on the brink of entering the workforce as potential insider hackers. Despite many subjects believing there is a high probability of being caught, they could still be incentivized to violate Health Insurance Portability and Accountability Act (HIPAA) laws. Approximately 306 (58%) of the survey participants indicated a price, ranging from zero dollars to more than $10 million, that they considered acceptable for violating the HIPAA laws. Income levels, white-hat hacking capabilities, monetary incentives to commit a crime, and the perceived probability of being apprehended were statistically significant predictors of the amount of money required to violate HIPAA laws.