The burgeoning Internet of Things (IoT) is an extremely exciting prospect. In the same way our phones, computers and tablets communicate with the World Wide Web, so will all of our devices (including refrigerators, home security systems, cars, etc.). Tech experts even expect the Internet of Things to overtake the size of the internet itself!
While the future of IoT is undoubtedly astonishing, it does bring up a very important question: What will IoT do to our cybersecurity? There are already thousands of cybersecurity incidents each year. It is hard enough to defend our digital assets as it is, and security experts are already warning that IoT technologies are far from security ready.
This is where cyber breach insurance comes in. If a cybercriminal is able to gain access to your devices, cyber breach insurance will cover the costs for repairs AND replacements. Think about it: What happens when hacker have 21 billion devices and opportunities to invade our personal information?
The Instability of IoT
It's scary to think that your car, your toaster and your home security system could all be used for nefarious purposes by faceless hackers. What's worse is that hackers may have already used IoT−connected technologies to crash some of the world's most popular websites, including Netflix, Spotify and Twitter.
On October 21, 2016 hackers were able to launch a Distributed Denial of Service (DDoS) attack on the Dyn domain name service (DYN) using an IoT botnet. While it is nearly impossible to estimate the total damage of this attack, we can assume the companies affected lost big bucks as visitors were prevented from using their services.
Below we will discuss some of the pros and cons of IoT, as well as what you can do to protect your business against data breach and cyberattacks using cyber breach insurance.
PROS: The Upside to IoT
Better Big Data: More services and access points means more information on your customers. By analyzing big data, you can better cater to customers' wants, anticipate their needs and individualize advertisements for better targeting.
Automation: IoT encourages machine−to−machine (M2M) communication while simultaneously providing data about its operations, correcting errors in real time and working with minimal human intervention.
Save Money & Time: Automation is a huge boon for businesses, especially manufacturers, who save money by reducing the downtime necessary to fix problems after they happen.
Life Upgrade: The name of the game has always been 'convenience.' Can't remember if you have enough milk in the fridge for tomorrow's cereal? Just whip out your cell phone to check your connected fridge system. Things like this will seem ubiquitous and commonplace in just a few years, similar to the adoption of cell phones.
CONS: Here's the Bad News
Weaker Security: The Internet of Things is wildly insecure. As companies race to fill this highly competitive marketspace, they tend to ignore some of the security failings implicit in these technologies. To make matters worse, many of these issues are unpatchable.
Dangerous Data: As with any technological advance in recent history, consumers and experts worry that greater data collection will ultimately compromise our privacy − both from overtly snoopy companies or prying cyber crooks.
Complexity: IoT is a complex network, and as with any complex network hardware failures, software bugs or power failures can cause extensive damage; not to mention that the origin of the flaw may be harder to track down.
Protect Your Most Valuable Assets
As technology continues to advance and evolve, so will the threats to our digital security. Protecting your company with cyber breach insurance from CyberPolicy can mitigate the damages of a hacker attack.
So whether you're installing IoT products in your home or business, or just concerned about the next botnet taking down your company website, it's time to make the smart decision and buy a cyber breach insurance policy today!
