Security systems protecting nearly half (48%) of organizations’ Internet of Things (IoT) networks have been breached at least once, according to an IoT security survey from Altman Vilandrie. Overall, the cost of the IoT security breaches represented 13.4 percent of smaller companies’ annual total revenues (companies with less than $5 million annual revenues.)
Though unspecified, losses related to IoT network security breaches at the largest companies ran into the tens of millions of dollars. Nearly half those with annual revenues over $2 billion estimated the loss from just one IoT security breach at more than $20 million, Altman Vilandrie highlighted.
Nearly 400 organizations were included in the Altman Vilandrie IoT security survey.
IoT Security Breaches
“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,” pointed out Altman Vilandrie director Stefan Bewley, the survey’s coordinator, in a news release. “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.”
Those companies that have invested in IoT security fared better than those that have not. Businesses that had not suffered an IoT security breach invested what amounted to 65 percent more on IoT security than those that had suffered one.
Altman Vilandrie found that decisions regarding procurement of IoT security solutions often were based more on provider’s reputation and product quality rather than cost.
“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,” the survey’s co-director, Altman Vilandrie & Co. principal Ryan Dean, commented. “Price is a secondary concern that buyers tend to evaluate after they have narrowed their options down to a few strong security solutions.”
Other key report findings include:
- Sixty-eight percent of respondents think about IoT security as a distinct category; yet only 43% have a standalone budget.
- Despite the fact that separate business units may have different needs, 74% of firms centralize IoT security decisions for the entire organization.
- After “preventing loss of control over IoT devices”, traditional cybersecurity concerns such as “preventing breaches of customer information” and “preventing breaches of company data” are ranked as the next most important reasons to adopt IoT security.