Nearly half of U.S.-based companies using an Internet of Things network have been hit by a recent security breach, according to new survey data released by strategy consulting firm Altman Vilandrie & Company.
The April 2017 survey of 397 IT executives across 19 industries showed that 48 percent of organizations have experienced at least one IoT security breach. It revealed the significant financial exposure of weak IoT security for companies of all sizes.
Nearly half of the businesses with annual revenues above $2 billion estimated the potential cost of one IoT breach at more than $20 million.
“While traditional cyber security 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 Stefan Bewley, director of Altman Vilandrie and author of the study.
“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,” Bewley said. “The potential vulnerabilities for firms of all sizes will continue to grow as more devices become Internet dependent.”
The study showed that preparedness helps. Companies that have not experienced a security incursion have invested 65 percent more on IoT security than those who have been breached. Other key findings: 68 percent of respondents think about IoT security as a distinct category, yet only 43 percent have a standalone budget.