The Key to Iot Security?
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MAY 2019 IS INCREMENTAL REGULATION The Key To IoT Security? Privacy advocates file FTC The top industry players, complaint against Amazon Echo including nine additions Dot Kids Page 18 (Scorecard) Page 10 (News and Trends) TABLE OF CONTENTS TABLE OF CONTENTS Intelligence of Things Ecosystem PYMNTS explores the latest field service, home, medical and 03 security IoT developments What’s Inside A look at what’s new in the IoT space, including Verizon and AT&T 04 network expansions and new legislation in the United Kingdom Feature Story Prasant Mohapatra, professor of computer science at the University 07 of California, Davis, discusses the state’s recent IoT legislation News and Trends 10 The latest headlines from around the IoT ecosystem Methodology The criteria PYMNTS uses to evaluate IoT providers and their 14 offerings, including devices, software, infrastructure and services Top Rankings 16 Who’s on top and how they got there Supplier Scorecard 18 A list of top IoT implementers and providers, including nine additions About Intelligence of Things 131 Information on PYMNTS.com Tracker © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 2 IOT ECOSYSTEM HOME MEDICAL Speaker maker Sonos to add Medical IoT devices are growing support for Google Assistant increasingly vulnerable to (p. 10) cyberattacks (p. 12) RETAIL SECURITY INFRASTRUCTURE SOFTWARE SECURITY FIELD SERVICE U.K. law mandates unique Cisco, Snam partner to research passwords for IoT-enabled and develop IIoT tech (p. 10) devices (p. 13) © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 3 WHAT’S INSIDE The internet of things (IoT) ecosystem continues to expand, and use cases for such solutions now include everything from streetlights to AgriTech to breweries. More than 14 billion of these devices are expected to be in use technology is being used to monitor and manage closed cir- by the end of the year, and with that growth comes a range cuit television (CCTV), streetlights and signs, as well as assist of ethical and legal problems. Environmental experts are con- with the nation's €8 billion ($8.9 billion USD) agricultural in- cerned about the eWaste produced when obsolete tech is dustry, according to Debbie Power, Vodafone Ireland’s IoT replaced, while privacy advocates are troubled that consum- country manager. ers are being constantly monitored. IoT solutions are also entering the beer industry. North Governments around the world are drafting IoT-related legis- Carolina’s Sugar Creek Brewing Company recently turned to lation to combat these worries. The United States’ Internet of connected flow meters and Bosch sensors to collect data Things Cybersecurity Improvement Act of 2019 is making its about bottles’ fill times, temperatures, pH and carbonation way through the Senate, while the United Kingdom's digital levels and other variables that can cause production process minister, Margot James, plans to introduce a law mandating issues. The company hopes it will be able to better address new security measures for the region’s IoT devices. these problems by monitoring them. IoT companies are also taking steps to assuage customers' Concerns continue to plague the ecosystem despite the concerns. Apple clarified its privacy policy in April in response technology’s proliferation into new markets, however. A se- to growing consumer unrest, with Amazon following suit last curity flaw was recently found in iLnkP2P’s software, which month. This practice has become commonplace for provid- is installed in millions of IoT-enabled security cameras, baby ers, but it remains unclear how effective it will be in reducing monitors and smart doorbells around the world. The issue en- customers’ fears. abled bad actors to spy on consumers and collect personal information, and it put approximately 2 million devices at risk. Around the IoT world For more on these stories and other headlines from around More than 375,000 IoT devices are now in use in Ireland, re- the IoT space, check out the Tracker’s News and Trends sec- vealing a remarkable growth in the adoption rate of such tion (p. 10). solutions for a country with only 6.5 million residents. The © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 4 WHAT’S INSIDE Can device manufacturers and governments see eye- University of California, Davis, explains the best practices to to-eye on IoT security? defend against hackers and why recent IoT laws might be More than 10 billion IoT devices are currently in operation heading down the wrong path. around the globe and 127 new ones are connecting every second, making security increasingly important. Several gov- May Tracker updates ernments, including the state of California and the city of The May Intelligence of Things Tracker provides a directo- San Francisco, are passing legislation dedicated to keeping ry detailing notable implementers and enablers, including citizens who use the technology secure. Just how effective nine additions: AGT International, Aviva, Daimler, Eddie are these new rules, though? In an interview with PYMNTS, Stobart Logistics, Grundfos, Harley-Davidson, Monnit, Softeq Prasant Mohapatra, professor of computer science at the and Zebra. © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 5 WHAT’S INSIDE $1.9t Projected value of the IoT market by the end of 2020 32% $2T Anticipated CAGR of the IoT satellite Estimated amount spent market by 2025 on IoT endpoints and Five Fast services in 2018 Facts $655.8b 30b Projected value of the Number of IoT devices connected automobile expected to be in market by 2025 use by 2020 © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 6 FEATURE STORY IS INCREMENTAL REGULATION The Key To IoT Security? © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 7 FEATURE STORY There are more than 10 billion IoT devices currently in use that work against the cybercriminals of today could be ineffec- around the globe and 127 new ones connecting every second, tive against the fraudsters of tomorrow. giving fraudsters many targets. Manufacturers have been re- “Most of these devices will need to cooperate with other de- searching and implementing more advanced security systems vices in the system,” Mohapatra explained. “That’s where to protect their customers, while governments have been there will be a lot of complexities and a lot of vulnerabilities. passing legislation to ensure those measures are up to snuff. With device-to-device interaction, there has to be enough se- But just how effective is all of this? curity implemented so you don’t leave any holes out there.” Providers may be integrating new security protocols, but not all methods are created equal, said Prasant Mohapatra, pro- Are governments equipped to tackle IoT security? fessor of computer science and vice chancellor for research Many governments are passing IoT-related legislation to en- at the University of California, Davis. These businesses must sure that manufacturers are adhering to necessary security double down on security solutions and underlying authentica- measures. SB-327 was passed last August in California, for tion processes. example, requiring providers to equip IoT devices with reason- “What is a must is multifactor authentication,” he said, refer- able security features. Each password-accessible unit must ring to systems that require two or more identity verification be given its own unique password under the ruling, or users methods, such as passwords and codes sent to users’ phones. must be required to set their own upon activation. “If we can tie at least one of the authentication methods to Security experts argue that the bill doesn’t go far enough, how- some kind of biometric feature, that will help a lot as well.” ever, as it does not address removing unsecure features that Artificial intelligence (AI) and machine learning (ML) could also introduce security loopholes. Mohapatra is more optimistic, play major roles in device security, he added, as technologies © 2019 PYMNTS.com All Rights Reserved Intelligence of Things Tracker | 8 FEATURE STORY arguing that even incremental improvements will force devel- He also advocates for a largely hands-off approach when it opers to implement their own security systems. comes to government regulation. “Most IoT devices are … used by people who … may not have “I think [security solutions] will be more driven by individual adequate technical expertise to handle [them],” he explained. citizens, and [by] the corporate world,” he said. “If we leave “People using home security systems will not be technically security and privacy to be derived from the research world — aware of the security loopholes. So, we need policies to safe- both from industry as well as academia — we will [find] a better guard common people.” solution.” Despite his support for bills like SB-327, Mohapatra urges cau- What’s next for IoT? tion when trying to legislate such a rapidly growing field. Mohapatra sees a bright future for the world of IoT despite “This is kind of a new territory, so I would like to take more his concerns about security vulnerabilities and governmental cautious steps moving ahead. As technology matures further, overreach. there might be better ways to handle [security],” he said. “My biggest hope is that we will have IoT everywhere,” he said. Mohapatra explained that this sort of discretion should have “There will be a parallel world where devices are interconnect- been applied in San Francisco, the first major U.S. city to ban ed and intercommunicating, and they’re achieving various all governmental use of facial-recognition technology. tasks without much interference from humans. They’ll [im- “This law is not about … facial recognition, it’s about trust,” prove] quality of life in all [aspects], including food, health, he said. “People are concerned that the government may use energy, the environment and any other societal needs.” [biometric data] for a purpose that [they] are not willing to give This dream does not come without risks, however.