Security & Fraud

Nearly Half Of Companies Using IoT Have Been Hacked

Close to half of companies in the U.S. that use an Internet of Things (IoT) network have reported being hit by a security breach.

That’s according to a new report by strategy consulting firm Altman Vilandrie & Company. In a press release highlighting the results of about 400 IT executives across 19 industries, the consulting firm found that anything with an internet connection can be hacked, creating serious financial and legal exposure for companies and safety concerns for workers and consumers.

The survey showed that 48 percent of firms have experienced at least one IoT security breach. What’s more, the survey revealed the cost of the breaches represented 13.4 percent of the total revenues for companies with revenues under $5 million annually and tens of millions of dollars for the largest firms. Nearly half of firms with annual revenue above $2 billion estimated the potential cost of one IoT breach at more than $20 million, the firm said.

“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 codirected the survey, in the press 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.”

While lots of companies are getting targeted, the data also show that being prepared can help. Companies that didn’t experience a security incursion have invested 65 percent more on IoT security than those that have been breached. The survey also showed that IT decision-makers often chose IoT security solutions based more on provider reputation and product quality rather than focusing on cost as a primary decision driver.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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