By Bala Ramaiah, CEO and founder of ISSQUARED

The integration of Internet of Things (IoT) devices into our personal and professional lives has delivered conveniences we now take for granted: from smart thermostats to wearable fitness trackers and fleet tracking devices. Yet this connectivity revolution has also created a new reality of unmanaged cyber risks. Businesses and consumers rush to adopt the latest IoT-enabled vehicles, appliances, medical devices and more but fail to devote adequate time to securing these interconnected ecosystems.

Smart cars exemplify the hidden dangers in IoT integration. Features like AI-assisted routing and fuel allocation have obvious appeal. However, these capabilities require cars to gather volumes of sensitive, personal data. What safeguards govern who accesses or shares this data? Could a compromised vehicle record private calls or track an individual's daily routines down to when (and where) their children go to school?

Cybersecurity professionals and consumers must finally recognize the extent of emerging threats introduced through embedded sensors, apps and analytics. The time has come to acknowledge the overlooked dangers of IoT integration and prioritize security. A lot has been said about this, but remediation against these risks may still be lacking the true momentum required.

The IoT explosion has created a massive attack surface

The IoT revolution is well underway. According to projections, the global IoT market will explode from $662 billion in 2023 to over $3 trillion by 2030. Integrating networked sensors, devices and systems throughout business operations and infrastructure have enhanced efficiency, analytics and automation. However, with great connectivity comes great risk. The rapid adoption of IoT in the energy, healthcare and transportation sectors has massively increased the attack surface available to bad actors.

In 2023, the average cost of a data breach reached an all-time high $4.45 million, according to IBM's annual report. The U.S. has the highest average cost of a breach in the world at $9.48 million. Healthcare again topped the industry list of breach costs, with the financial, pharmaceuticals, energy and industrial sectors rounding out the top five. Where does IoT fit in? Connected-device breaches cost organizations roughly $236,035 each year - more than half the average annual budget devoted to securing IoT device security, according to a recent Keyfactor survey.

IoT systems operate through a complex web of endpoints, data flows and access points. Each connected device or entry point represents another potential vulnerability. As organizations have vast network critical operational systems and infrastructure, the implications of an IoT breach grow more severe. Failure to adequately recognize and address this exponentially expanding IoT landscape as an attack vector leaves organizations and individuals hugely exposed.

IoT cyber risks threaten businesses, infrastructure and individuals

Keyfactor found nearly all organizations (97%) say they face challenges in securing their IoT and connected products to some degree. Additionally, most organizations (69%) using or operating IoT devices have seen an increase in cyber attacks on their devices since 2020. Over half (56%) of respondents believe their organization lacks sufficient awareness and expertise to prepare for cybersecurity attacks through IoT devices.

Limited security standards and low user awareness about IoT vulnerabilities exacerbate these risks. Users unaware of potential weaknesses presume their smart home devices, fitness trackers and vehicles are safe. Attackers can exploit these unsecured devices to infiltrate larger systems. Without action to address risks and raise awareness, IoT will continue fueling serious threats to businesses, critical infrastructure and our personal lives.

Cyber professionals need to prioritize IoT protections

IoT integration has been happening in plain sight within organizations for years. Yet many cybersecurity professionals have not given this attack landscape the attention it requires. With cloud security and ransomware defense dominating the conversation, the growing IoT threat has remained below the radar. This oversight leaves massive gaps in cyber defenses, as billions of connected devices operate without adequate protection.

By failing to recognize - or act on - the extent of the IoT attack surface, the cyber community has missed a critical window to build security into emerging IoT systems. Lack of action also risks stifling innovation as organizations scale back adoption because they recognize but have no strategies to mitigate/address vulnerabilities.

The need for greater IoT cybersecurity investment and innovation

Resolving organizations' cybersecurity concerns associated with IoT adoption would accelerate economic growth. A McKinsey survey found that 40% of respondents would increase IoT budget and deployment by 25% or more if IoT security vulnerabilities were addressed.

The data shows that cyber professionals must reshape priorities and gain buy-in from decision-makers to channel more investment into securing IoT ecosystems. In addition to driving growth, tackling IoT security now creates an opportunity for companies to build effective protections into the foundation of their future systems. Promising innovations like blockchain-based security, AI-powered threat detection, bug bounty programs and lightweight encryption are growing in popularity. Other solutions like edge computing have been architected to keep sensitive data off public clouds while still promoting connectivity and analytics.

Edge computing solutions allow locally controlled systems to handle data processing and workloads rather than relying solely on public cloud services. This approach enables organizations to keep sensitive data and high-value assets off the public internet, away from external threats. Edge computing resources exist physically closer to IoT devices and users, providing faster response times.

Locally processed data also reduces latency and bandwidth usage. Edge computing can ensure quick threat detection and response for IoT ecosystems while keeping an organization's most valuable data secured on privately controlled servers. Implementing this key strategic step empowers organizations to make their IoT environments more secure.

The IoT revolution has brought convenience but also introduced unprecedented cybersecurity risks. Cyber professionals must prioritize and address long-overlooked vulnerabilities by capitalizing on emergent and tried-and-true solutions. IoT integrations will continue to accelerate, but we can renew our focus to secure IoT ecosystems for business, infrastructure and society. Though the challenges are great, the stakes - our connectivity, safety, and privacy - demand action to safeguard an IoT-enabled future.

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ABOUT THE AUTHOR

Bala Ramaiah is the CEO of ISSQUARED, which he founded in 2010. His broad and rich exposure to IT infrastructure management, architecture and security with a hands on approach has helped set a clear vision for the company. Prior to founding ISSQUARED, Bala held leadership roles at Exodus Communications and Amgen. He holds a Bachelor's Degree in Physics from Delhi University, where he graduated with honors, and a Master's Degree in Computer Science from California Lutheran University.