Paper Number

1712

Paper Type

CRP

Abstract

Ransomware attacks have been rapidly increasing in impact, severity, and frequency over the past years. These attacks are disclosed by companies in official press releases, but also days in advance on the darknet, published by the ransomware operators on dedicated extortion sites. However, it remains unclear whether information from the darknet is used by investors or shareholders. In this study, we examine the impact of official press releases and darknet announcement of a ransomware attack by conducting an event study. To achieve a high degree of accuracy and topicality, we have created a data set that considers the content of extortion sites for attacks that occurred over the last three years. Our study contributes in two ways: First, we can verify the impact of the official press release on the stock market. Second, our study reveals that the darknet is treated as an uncertain source of information.

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Jun 14th, 12:00 AM

Do Investors Surf the Darknet? Exploring the Impact of Darknet Announcements on Market Reactions

Ransomware attacks have been rapidly increasing in impact, severity, and frequency over the past years. These attacks are disclosed by companies in official press releases, but also days in advance on the darknet, published by the ransomware operators on dedicated extortion sites. However, it remains unclear whether information from the darknet is used by investors or shareholders. In this study, we examine the impact of official press releases and darknet announcement of a ransomware attack by conducting an event study. To achieve a high degree of accuracy and topicality, we have created a data set that considers the content of extortion sites for attacks that occurred over the last three years. Our study contributes in two ways: First, we can verify the impact of the official press release on the stock market. Second, our study reveals that the darknet is treated as an uncertain source of information.

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