IoT Attack Losses at $330K and Rising

Friday, May 31, 2019 @ 03:05 PM gHale

Organizations in industries like manufacturing have suffered substantial losses due to IoT-related vulnerabilities, a new study found.

In addition, 8 out of 10 organizations experienced a cyberattack on their IoT devices in the past 12 months, according to new research by Irdeto in its “Global Connected Industries Cybersecurity Survey.”

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Of those organizations, 90 percent experienced an impact as a result of the cyberattack, including operational downtime and compromised customer data or end-user safety.

This research shows security limitations of IoT devices and the need for organizations to think carefully about a cybersecurity strategy amidst an IoT deployment.

The survey consisted of 700 enterprises in five countries (China, Germany, Japan, UK and U.S.) also found that organizations in transport, manufacturing and healthcare have suffered substantial losses due to IoT-related vulnerabilities. The average financial impact as a result of an IoT-focused cyberattack identified as more than $330,000.

With IoT in its relative infancy across these sectors, this substantial financial burden is only going to increase if action is not taken, according to the survey. However, it’s not all gloom and doom for these sectors. Of those surveyed, 99 percent agree a security solution should be an enabler of new business models, not just a cost. These findings suggest the previous mindset of IoT security as an afterthought is changing.

“One of the most promising results of the study found that today’s organizations in technology, transport, manufacturing and healthcare are thinking even more strategically about security,” said Steeve Huin, vice president of strategic partnerships, business development and marketing at Irdeto. “This is a clear indication that today’s businesses realize the value add that security can bring to their organization. From enabling new rental or subscription models in connected vehicles, to Digital Twins revolutionizing the manufacturing processes, to providing patients with even better healthcare, security is the enabler to successfully implementing new and future business models in today’s connected world.”

While that positive is encouraging, the research also showed a distinct lack of optimism about the future security of IoT devices within these organizations.

Only 7 percent of respondents said their organization has everything it needs to tackle cybersecurity challenges.

On top of that, 46 percent said they need additional expertise/skills within the organization to address all aspects of cybersecurity. This was followed closely by more effective cybersecurity tools and the implementation of a more robust cybersecurity strategy at 43 percent each.

In addition, 82 percent of organizations that manufacture IoT devices are concerned the devices they develop are not adequately secured from a cyberattack.

Further, 93 percent of manufacturers and 96% of users of IoT devices said cybersecurity of the IoT devices they manufacture or use could be improved either to a great extent or to some extent.

In the UK, Germany and China, 100 percent of IoT device users believe the cybersecurity of the devices they use could be improved either to a great extent or to some extent.

“The benefits brought to a wide range of industries by connectivity and the Internet of Things are not in doubt. However, greater connectivity opens organizations and their customers up to a myriad of additional vulnerabilities that must be considered from the outset,” said Jaco Du Plooy, vice president of IoT security at Irdeto. “If you want to take advantage of the benefits of connected devices or software, you need to choose wisely where to spend your time and budget. Organizations must understand the scope of their current risk, ask hard cybersecurity-centric questions to vendors and work with trusted advisors to safely embrace connectivity in their manufacturing process. Then organizations must incorporate multiple layers of security into their defenses.”

Click here to register for the full report.

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