Comparing Alternatives to Measure the Impact of DDoS Attack Announcements on Target Stock Prices

Abhishta Abhishta; Reinoud Joosten; Lambert J.M. Nieuwenhuis

doi:10.22667/JOWUA.2017.12.31.001

Comparing Alternatives to Measure the Impact of DDoS Attack Announcements on Target Stock Prices

Abhishta Abhishta, Reinoud Joosten, Lambert J.M. Nieuwenhuis

Industrial Engineering & Business Information Systems

Research output: Contribution to journal › Article › Academic › peer-review

5 Citations (Scopus)

92 Downloads (Pure)

Abstract

Distributed denial of service (DDoS) attacks are responsible for creating unavailability of online resources. Botnets based on internet of things (IOT) devices are now being used to conduct DDoS attacks. The estimation of direct and indirect economic damages caused by these attacks is a complex problem. In this article we analyze the impact of 45 different DDoS attack announcements on victim firm’s stock prices using three different approaches and compare the results. We show that the assumption of cumulative abnormal returns being normally distributed leads to overestimation/underestimation of the impact. We solve this problem by using an empirical distribution of cumulative abnormal returns for hypothesis testing. Finally, we demonstrate the impact of DDoS attack announcements
in each of the cases.

Original language	English
Pages (from-to)	1-18
Number of pages	18
Journal	Journal of wireless mobile networks, ubiquitous computing, and dependable applications
Volume	8
Issue number	4
DOIs	https://doi.org/10.22667/JOWUA.2017.12.31.001
Publication status	Published - 31 Dec 2017

Keywords

DDoS attacks
Stock market
Event study

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10.22667/JOWUA.2017.12.31.001

jowua-v8n4-1Final published version, 4.27 MB

5 Citations
1 PhD Thesis - Research UT, graduation UT

The Blind Man and The Elephant: Measuring Economic Impacts of DDoS Attacks
Abhishta, A., 5 Dec 2019, Enschede: University of Twente. 219 p.
Research output: Thesis › PhD Thesis - Research UT, graduation UT

Open Access
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3260 Downloads (Pure)

Cite this

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title = "Comparing Alternatives to Measure the Impact of DDoS Attack Announcements on Target Stock Prices",

abstract = "Distributed denial of service (DDoS) attacks are responsible for creating unavailability of online resources. Botnets based on internet of things (IOT) devices are now being used to conduct DDoS attacks. The estimation of direct and indirect economic damages caused by these attacks is a complex problem. In this article we analyze the impact of 45 different DDoS attack announcements on victim firm{\textquoteright}s stock prices using three different approaches and compare the results. We show that the assumption of cumulative abnormal returns being normally distributed leads to overestimation/underestimation of the impact. We solve this problem by using an empirical distribution of cumulative abnormal returns for hypothesis testing. Finally, we demonstrate the impact of DDoS attack announcementsin each of the cases.",

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Comparing Alternatives to Measure the Impact of DDoS Attack Announcements on Target Stock Prices. / Abhishta, Abhishta ; Joosten, Reinoud ; Nieuwenhuis, Lambert J.M.
In: Journal of wireless mobile networks, ubiquitous computing, and dependable applications, Vol. 8, No. 4, 31.12.2017, p. 1-18.

Research output: Contribution to journal › Article › Academic › peer-review

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AU - Joosten, Reinoud

AU - Nieuwenhuis, Lambert J.M.

PY - 2017/12/31

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KW - Stock market

KW - Event study

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ER -

Comparing Alternatives to Measure the Impact of DDoS Attack Announcements on Target Stock Prices

Abstract

Keywords

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Research output

The Blind Man and The Elephant: Measuring Economic Impacts of DDoS Attacks

Cite this