Skip to main content

Analysis of Ecrime in Crowd-Sourced Labor Markets: Mechanical Turk vs. Freelancer

  • Chapter
  • First Online:
The Economics of Information Security and Privacy

Abstract

Research in the economics of security has contributed more than a decade of empirical findings to the understanding of the microeconomics of (in)security, privacy, and ecrime. Here we build on insights from previous macro-level research on crime, and microeconomic analyses of ecrime to develop a set of hypotheses to predict which variables are correlated with national participation levels in crowd-sourced ecrime. Some hypotheses appear to hold, e.g. Internet penetration, English literacy, size of the labor market, and government policy all are significant indicators of crowd-sourced ecrime market participation. Greater governmental transparency, less corruption, and more consistent rule of law lower the participation rate in ecrime. Other results are counter-intuitive. GDP per person is not significant, and, unusually for crime, a greater percentage of women does not correlate to decreased crime. One finding relevant to policymaking is that deterring bidders in crowd-sourced labor markets is an ineffective approach to decreasing demand and in turn market size.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

Notes

  1. 1.

    Gross Domestic Product (GDP) indicates the aggregate worth of goods and services produced by a country in a specific time frame, typically annually. GDP per capita is an indicator of the average standard of living in a country.

  2. 2.

    http://hdl.handle.net/2451/29585, retrieved on 24 February 2012

  3. 3.

    Ideally, identical goods cost the same in two different markets, when priced in the same currency. However, transaction costs lead to different prices. Purchasing Power Parity measures the difference between prices in two different markets for identical goods and services.

  4. 4.

    http://data.worldbank.org/indicator, retrieved on 24 February 2012.

  5. 5.

    https://www.ets.org/toefl/research/topics/candidates_and_populations, retrieved on 24 February 2012.

  6. 6.

    Best-fit model indicates the subset of indicators for which the corresponding linear regression obtained the highest adjusted R 2 value.

References

  1. Al-Jabri, I., Abdul-Gader, A.: Software copyright infringements: an exploratory study of the effects of individual and peer beliefs. Omega 25(3), 335–344 (1997)

    Article  MATH  Google Scholar 

  2. Anderson, R.: Why information security is hard – an economic perspective. In: Proceedings of the 17th Annual Computer Security Applications Conference, New Orleans (2001)

    Google Scholar 

  3. Bernard, A., Busse, M.: Who wins the Olympic Games: economic resources and medal totals. Rev. Econ. Stat. 86(1), 413–417 (2004)

    Article  Google Scholar 

  4. Bhagwati, J., Hansen, B.: A theoretical analysis of smuggling. Q. J. Econ. 87, 172–187 (1973)

    Article  Google Scholar 

  5. Bursik, R., Jr., Grasmick, H.: Economic deprivation and neighborhood crime rates, 1960–1980. Law Soc. Rev. 27(2), 263–283 (1993)

    Article  Google Scholar 

  6. Bursztein, E., Bethard, S., Fabry, C., Mitchell, J.C., Jurafsky, D.: How good are humans at solving CAPTCHAs? A large scale evaluation. In: Proceedings of the 2010 IEEE Symposium on Security and Privacy, Berkeley/Oakland (2010)

    Google Scholar 

  7. Chamlin, M., Cochran, J.: Assessing Messner and Rosenfeld’s institutional anomie theory: a partial test. Criminology 33(3), 411–429 (1995)

    Article  Google Scholar 

  8. Chamlin, M., Cochran, J.: Social altruism and crime. Criminology 35(2), 203–226 (1997)

    Article  Google Scholar 

  9. Chen, Y., Png, I.: Software pricing and copyright enforcement: private profit vis-a-vis social welfare. In: Proceedings of the 20th International Conference on Information Systems, Charlotte (1999)

    Google Scholar 

  10. Choo, K.K., Smith, R.: Criminal exploitation of online systems by organised crime groups. Asian J. Criminol. 3(1), 37–59 (2008)

    Article  Google Scholar 

  11. Christin, N., Egelman, S., Vidas, T., Grossklags, J.: It’s all about the Benjamins: an empirical study on incentivizing users to ignore security advice. In: Proceedings of the 16th International Conference on Financial Cryptography and Data Security, Kralendijk. Financial Cryptography and Data Security Lecture Notes in Computer Science, vol. 7035, pp. 16–30 (2012)

    Article  Google Scholar 

  12. Cohen, L., Felson, M.: Social change and crime rate trends: a routine activity approach. Am. Soc. Rev. 44, 588–608 (1979)

    Article  Google Scholar 

  13. Colvin, M., Cullen, F., Ven, T.: Coercion, social support, and crime: an emerging theoretical consensus. Criminology 40(1), 19–42 (2002)

    Article  MATH  Google Scholar 

  14. Easterly, W., Sewadeh, M.: Global development network growth database. Technical report, World Bank Group (2001)

    Google Scholar 

  15. Edlund, L., Li, H., Yi, J., Zhang, J.: Sex ratios and crime: evidence from China’s one-child policy. Technical report 3214, Forschungsinstitut zur Zukunft der Arbeit (IZA) (2007)

    Google Scholar 

  16. Fortunato, M.: Let’s not go crazy: why Lenz vs. Universal Music Corp. undermines the notice and takedown process of the Digital Millennium Copyright Act. J. Intellect. Prop. Law 17, 147–445 (2009)

    Google Scholar 

  17. Franklin, J., Paxson, V., Perrig, A., Savage, S.: An inquiry into the nature and causes of the wealth of internet miscreants. In: Proceedings of the 14th ACM Conference on Computer and Communications Security, Alexandria (2007)

    Google Scholar 

  18. Gal-Or, E., Ghose, A.: The economic consequences of sharing security information. In: Proceedings of the 2nd Annual Workshop on the Economics of Information Security, University of California, Berkeley (2003)

    Google Scholar 

  19. Garg, V., Husted, N., Camp, J.: Smuggling theory approach to organized digital crime. In: Proceedings of the 6th Annual APWG eCrime Researcher’s Summit, San Diego (2011)

    Google Scholar 

  20. Higgins, G., Wilson, A., Fell, B.: An application of deterrence theory to software piracy. J. Crim. Justice Pop. Cult. 12(3), 166–184 (2005)

    Google Scholar 

  21. Holz, T., Engelberth, M., Freiling, F.: Learning more about the underground economy: a case-study of keyloggers and dropzones. In: Proceedings of the 14th European Symposium on Research in Computer Security, Saint-Malo (2009)

    Google Scholar 

  22. Horton, J., Chilton, L.: The labor economics of paid crowdsourcing. In: Proceedings of the 11th ACM Conference on Electronic Commerce, Harvard (2010)

    Google Scholar 

  23. Ipeirotis, P.: Demographics of Mechanical Turk. Technical report CEDER-10-01, Stern School of Business, New York University (2010)

    Google Scholar 

  24. Kanich, C., Checkoway, S., Mowery, K.: Putting out a hit: crowdsourcing malware installs. In: Proceedings of the 5th USENIX Workshop on Offensive Technologies, San Francisco (2011)

    Google Scholar 

  25. Katz, M., Shapiro, C.: Technology adoption in the presence of network externalities. J. Pol. Econ. 94(4), 822–841 (1986)

    Article  Google Scholar 

  26. Kaufmann, D., Kraay, A., Mastruzzi, M.: The worldwide governance indicators: methodology and analytical issues. Hague J. Rule Law 3(2), 220–246 (2011)

    Article  Google Scholar 

  27. Krishnamurthy, S., Tripathi, A.: Bounty programs in free/libre/open source software. In: Bitzer, J., Schröder, P.J.H. (eds.) The Economics of Open Source Software Development, pp. 165–183. Elsevier, Amsterdam/Boston (2006)

    Chapter  Google Scholar 

  28. Kwon, J., Johnson, M.: An organizational learning perspective on proactive vs. reactive investment in information security. In: Proceedings of the 10th Annual Workshop on Economics of Information Security, Fairfax (2011)

    Google Scholar 

  29. Lelarge, M.: Economics of malware: epidemic risks model, network externalities and incentives. In: Proceedings of the 47th Annual Allerton Conference on Communication, Control, and Computing, Monticello (2009)

    Google Scholar 

  30. Li, Z., Liao, Q., Striegel, A.: Botnet economics: uncertainty matters. In: Johnson, M.E. (ed.) Managing Information Risk and the Economics of Security, pp. 245–267. Springer, New York/London (2009)

    Chapter  Google Scholar 

  31. Mason, W., Suri, S.: Conducting behavioral research on Amazon’s Mechanical Turk. Behav. Res. Methods 44, 1–23 (2012)

    Article  Google Scholar 

  32. Mason, W., Watts, D.: Financial incentives and the “performance of crowds”. In: Proceedings of the ACM SIGKDD Workshop on Human Computation, Washington, DC (2010)

    Google Scholar 

  33. Messner, S., Rosenfeld, R.: Crime and the American Dream. Wadsworth Publishing Co., Belmont (1994)

    Google Scholar 

  34. Miller, C.: The legitimate vulnerability market: inside the secretive world of 0-day exploit sales. In: Proceedings of the 6th Annual Workshop on the Economics of Information Security, Pittsburgh (2007)

    Google Scholar 

  35. Moore, T., Clayton, R.: An empirical analysis of the current state of phishing attack and defence. In: Proceedings of the 6th Annual Workshop on the Economics of Information Security, Pittsburgh (2007)

    Google Scholar 

  36. Moore, T., Clayton, R., Anderson, R.: The economics of online crime. J. Econ. Perspect. 23(3), 3–20 (2009)

    Article  Google Scholar 

  37. Motoyama, M., Levchenko, K., Kanich, C., McCoy, D., Voelker, G., Savage, S.: Re: CAPTCHAs–understanding CAPTCHA-solving services in an economic context. In: Proceedings of the 19th USENIX Security Symposium, Washington, DC (2010)

    Google Scholar 

  38. Motoyama, M., McCoy, D., Levchenko, K., Savage, S., Voelker, G.M.: Dirty jobs: the role of freelance labor in web service abuse. In: Proceedings of the 20th USENIX Security Symposium, San Francisco (2011)

    Google Scholar 

  39. Nagel, I., Hagan, J.: Gender and crime: offense patterns and criminal court sanctions. Crime Justice 4, 91–144 (1983)

    Article  Google Scholar 

  40. Osorio, C.: A contribution to the understanding of illegal copying of software: empirical and analytical evidence against conventional wisdom. In: Program on Internet and Telecoms Convergence (2002). http://hdl.handle.net/1721.1/1479

  41. Ozment, A.: Bug auctions: vulnerability markets reconsidered. In: Proceedings of the 3rd Workshop on the Economics of Information Security, Minnesota (2004)

    Google Scholar 

  42. Pitt, M.: Smuggling and price disparity. J. Int. Econ. 11(4), 447–458 (1981)

    Article  Google Scholar 

  43. Png, I., Wang, C., Wang, Q.: The deterrent and displacement effects of information security enforcement: international evidence. J. Manag. Inf. Syst. 25(2), 125–144 (2008)

    Article  Google Scholar 

  44. Pratt, T., Cullen, F.: Assessing macro-level predictors and theories of crime: a meta-analysis. Crime Justice 32(2005), 373–450 (2005)

    Google Scholar 

  45. Ross, J., Irani, L., Silberman, M.S., Zaldivar, A., Tomlinson, B.: Who are the crowdworkers? Shifting demographics in Mechanical Turk. In: Extended Abstracts on Human Factors in Computing Systems, Atlanta (2010)

    Google Scholar 

  46. Sampson, R., Groves, W.: Community structure and crime: testing social-disorganization theory. Am. J. Soc. 94(4), 774–802 (1989)

    Article  Google Scholar 

  47. Sanchez, J.: SOPA, internet regulation and the economics of piracy. http://www.cato.org/publications/commentary/sopa-internet-regulation-economics-piracy (2012)

  48. Savolainen, J.: Inequality, welfare state, and homicide: further support for the institutional anomie theory. Criminology 38(4), 1021–1042 (2000)

    Article  Google Scholar 

  49. Shostack, A., Stewart, A.: The New School of Information Security. Addison-Wesley Professional, Upper Saddle River (2008)

    Google Scholar 

  50. Stone-Gross, B., Abman, R., Kemmerer, R., Kruegel, C., Steigerwald, D., Vigna, G.: The underground economy of fake antivirus software. In: Proceedings of the 10th Annual Workshop on the Economics of Information Security, Fairfax (2011)

    Google Scholar 

  51. Thomas, R., Martin, J.: The underground economy: priceless. USENIX; login 31(6), 7–16 (2006)

    Google Scholar 

  52. Unit, E.I.: Digital economy rankings 2010 beyond e-readiness. Technical report, Economist Intelligence Unit and The IBM Institute for Business Value (2010)

    Google Scholar 

  53. Varian, H.: Economics of Information Technology. University of California, Berkeley (2001)

    Google Scholar 

  54. Varian, H.: System reliability and free riding. In: Camp, L.J., Lewis, S. (eds.) Economics of Information Security, pp. 1–15. Kluwer, Boston (2004)

    Chapter  Google Scholar 

  55. Venkatesh, V., Morris, M.G.: Why don’t men ever stop to ask for directions? Gender, social influence, and their role in technology acceptance and usage behavior. MIS Q. 24(1), 115–139 (2000)

    Article  Google Scholar 

  56. von Ahn, L., Blum, M., Hopper, N., Langford, J.: CAPTCHA: using hard AI problems for security. In: Proceedings of Eurocrypt, Warsaw (2003)

    Google Scholar 

  57. Walker, I., Pettigrew, T.: Relative deprivation theory: an overview and conceptual critique. Br. J. Soc. Psychol. 23(4), 301–310 (1984)

    Article  Google Scholar 

  58. Yar, M.: The novelty of ‘cybercrime’. Eur. J. Criminol. 2(4), 407–427 (2005)

    Article  Google Scholar 

  59. Zhuge, J., Holz, T., Song, C., Guo, J., Han, X., Zou, W.: Studying malicious websites and the underground economy on the Chinese Web. In: Proceedings of the 7th Annual Workshop on the Economics of Information Security, Hanover (2008)

    Google Scholar 

Download references

Acknowledgements

We would like to thank Prof. Panagiotis G. Ipeirotis who made the demographic data publicly available. We also thank Prof. Stefan Savage’s research group at UCSD for providing us with the data on Freelancer. Finally, we thank the Stat/Math Center at Indiana University for their insight on the statistical analysis. Any mistakes in this chapter are the authors’ own responsibility.

This presentation of this research was made possible by funding from the Volkswagen Foundation. This material is based upon work supported by the National Science Foundation (NSF) under award number 0916993. Any opinions, findings, and conclusions or recommendations expressed in this presentation are those of the author(s) and do not necessarily reflect the views of the NSF.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Vaibhav Garg .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Garg, V., Camp, L.J., Kanich, C. (2013). Analysis of Ecrime in Crowd-Sourced Labor Markets: Mechanical Turk vs. Freelancer. In: Böhme, R. (eds) The Economics of Information Security and Privacy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39498-0_13

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-39498-0_13

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-39497-3

  • Online ISBN: 978-3-642-39498-0

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics