Cybercrime Spike Propels IoT Spending Toward $29B Market

The Internet Of Things may be the new frontier for cybercrime.

At least that is what the Federal Bureau of Investigation warned consumers and businesses about in a Public Service Announcement late last week.

The FBI wants the public to be aware of the IoT vulnerabilities cybercriminals have the potential to exploit and the risks associated with having deficient security capabilities associated with Web-connected devices. According to the FBI, criminals who gain unauthorized access to IoT devices can remotely facilitate attacks on other systems, send malicious and spam emails, steal personal information or interfere with physical safety.

The concerns of the FBI come at time when increased cybercrime is driving the burgeoning IoT security market, CSO Online reported Tuesday (Sept. 15), which research from Markets and Markets shows could grow from $6.89 billion in 2015 to $28.90 billion by 2020.

According to the McKinsey & Company report Unlocking the potential of the Internet of Things, IoT has the potential to have a $3.9 trillion to $11.1 trillion a year economic impact by 2025.

As devices and sensors all increase functionality and interaction using the Internet as a common platform, the potential is there for companies worldwide to boost revenues, create new business and also make decision-making more effective.

But privacy and security concerns may remain a challenge to IoT adoption.

“Some of the most important risks are around cybersecurity,” Michael Chui, co-author of the report and a partner at McKinsey, said an the interview with The Huffington Post.

“No. 1, many, many more devices are connected, which means there are more ways to breach security and cause problems. No. 2, the consequences of a breach become more perilous. If you could hack a million driverless cars or control a chemical plant, those are risks for which the consequence of a negative incident are catastrophic. We need to invest appropriately and have a full dialogue. Awareness and understanding are the first step.”

The IoT market is expected to grow as much as 16.9 percent annually through the next five years to reach $1.7 trillion worldwide, according to a report released by research firm International Data Corporation.

With more IoT devices hitting the market, security concerns addressing how to keep consumers safe while using these devices are also growing.

Last month, information protection company Symantec announced the expansion of its security portfolio to include securing more than 1 billion IoT devices, allowing it to defend always-on, Internet-connected devices from the threat of hacks.

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