Half of US companies hit by IoT security breaches, says survey

Half of US companies hit by IoT security breaches, says survey

Half of all US companies hit with an IoT security breach

Almost half of all companies in the US using an IoT network have been the victims of recent security breaches, according to a survey.

The survey was produced by strategy consulting group, Altman Vilandrie & Company, which specializes in the telecoms, media and tech industries. The firm contacted almost 400 IT decision-makers across 19 industries, all of whom have purchased IoT security solutions.

Based on the responses, the survey indicates that as many as 48 percent of companies in the US have experienced a security breach. For companies with annual revenues of less than $5 million, the average costs associated with a breach are estimated at 13 percent of revenues. For larger companies, they run into 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.”

Read more: Pace of IoT innovation adds to security woes, says survey

Preparation is key

The survey also suggests a correlation between the amount companies spend on IoT security and the likelihood of a breach. Typically, those companies that have not been breached have invested as much as 65 percent more in IoT security than their counterparts.

Decision-makers also confirmed that any product investment is based on the reputation of the provider and the quality of the product, not the cost of the investment.

“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 Altman Vilandrie & Company principal, Ryan Dean, the survey’s other co-director. “Price is a secondary concern that buyers tend to evaluate after they have narrowed their options down to a few strong security solutions.”

The Altman Vilandrie & Company survey was conducted in April 2017 and includes responses from almost 400 IT decision-makers that have purchased some form of IoT security solutions. Respondents represented 19 industries and companies ranging from start-ups to multinational corporations with billions of dollars in annual revenues.

Read more: ENISA works with industry on IoT cybersecurity requirements