The report also showed that IoT breaches can cost up to 13% of the smaller firms´ annual revenues
Nearly half of U.S. firms using an internet of things (IoT) network have been hit by a recent security breach, according to a study by consulting firm Altman Vilandrie & Company.
The study said that these security breaches can cost up to 13% of smaller companies’ annual revenues.
The study, which surveyed approximately 400 IT executives across 19 industries, showed that 48% of firms have experienced at least one IoT security breach. The survey revealed the significant financial exposure of leaky IoT security for companies of all sizes.
“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. “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,” he added.
The study also revealed that companies that have not experienced a security incursion have invested 65% more on IoT security than those who 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.
“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. “Price is a secondary concern that buyers tend to evaluate after they have narrowed their options down to a few strong security solutions.”
