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The tendency of strategic hackers to attack specific industries brings new challenges for information security management. This paper examines the interaction between firms in a specific industry and a strategic hacker by considering industry-specific characteristics including the intrinsic vulnerability, intentions of the hacker, competition between firms, and similarity of security technologies. We find that firms in an overly dangerous industry should consider reforming their business mode to reduce the intrinsic vulnerability rather than investing heavily in security protection. Moreover, we distinguish the hacker as profit-seeking and fame-seeking and find that different intentions generate different hacker’s behaviour. Furthermore, keep exerting effort is still a better strategy for the firms when the competition becomes more intense even the threat of the hacker reduces. Besides, the technical similarity enhances the hacker …