Technology security specialists DigiCert have released a study revealing that many organisations are sustaining significant financial losses as a result of insecure IoT environments. Digicert estimates that 25 percent of IoT companies have sustained financial losses of approximately £34 million in the last two years.
Why are these companies losing so much money?
IoT organisations are primarily losing money because of weak security. This makes them more susceptible to attacks by hackers and data thieves, and DDoS attacks are on the increase.
DigiCert's study divided the ways that security breaches can harm a company financially:
- Reputational damage; the loss of existing and potential customers due to security concerns,
- Legal costs and compliance fees,
- Loss of productivity,
- Lowered stock price,
- Monetary damage.
Perhaps unsurprisingly, the research also found a strong correlation between companies that are most struggling to implement IoT and those reporting financial losses related to security.
How can companies incorporating IoT protect themselves?
Companies need to emulate the practices of top-tier enterprises who have successfully incorporated security into their IoT devices. Key practices include:
- The encryption of all data – including data in transit. End-to-end data encryption should be a prerequisite.
- Making sure the IoT security framework and infrastructure are fully scalable and in place before the latest IoT deployments. Using the expertise of a third party is highly recommended.
- Ensuring all authentication procedures are adequate. Use digital certificates to provide smooth identification allied to cryptographic protocols.