BY Richard Summerfield
Nearly half of all companies in the US using an Internet of Things (IoT) network have been the victims of recent security breaches, according to a new survey from Altman Vilandrie & Company.
The survey, ‘Are your company’s IoT devices secure?’, which included nearly 400 organisations, notes that security systems protecting 48 percent of organisations’ IoT networks have been breached at least once in the last two years. Overall, the cost of the IoT security breaches represented 13.4 percent of smaller companies’ annual total revenues. For larger companies – those with annual revenues in excess of $5m – the cost of a breach can run into the tens of millions.
“While traditional cybersecurity has grabbed the nation’s attention, IoT security has been somewhat under the radar, even for some companies that have a lot to lose through a breach,” said Altman Vilandrie & Company director Stefan Bewley, who co-directed the survey. “IoT attacks expose companies to the loss of data and services and can render connected devices dangerous to customers, employees and the public at large. The potential vulnerabilities for firms of all sizes will continue to grow as more devices become Internet dependent.”
The survey also highlights a connection between the amount companies spend on IoT security and the likelihood that they endure a breach. Typically, those companies that have not been breached have invested as much as 65 percent more in IoT security than their counterparts. Preparedness is key, though the risks for companies of all size, and at all levels of preparedness, will continue to grow as more devices become internet-dependent.
“We see it being critical for security providers to build a strong brand and reputation in the IoT security space. There are lots of providers developing innovative solutions, but when it comes to purchasing decisions, buyers are looking for a brand and product they trust,” said Ryan Dean, a principal at Altman Vilandrie & Company, who co-directed the survey. “Price is a secondary concern that buyers tend to evaluate after they have narrowed their options down to a few strong security solutions.”