There is good reason why sales of cyber security products are growing at twice the rate of GDP. In the age of the Internet of Things (IoT) every connected consumer device, from homecare monitors to kids’ toys, is a potential threat to data security and privacy.
Gartner estimates that over 7 billion consumer IoT devices have been installed by 2018, and the number is projected to grow to nearly 13 billion by 2020. For manufacturers, the growth of consumer IoT markets is a unique opportunity to develop new software and service-based revenue models. Unfortunately, the market’s growth is being matched by the cost of cybercrime which is projected by Cybersecurity Ventures to reach $6 trillion globally in 2021.
The cost of cybercrime extends far beyond stolen money. It includes the destruction and theft of data or intellectual property, as well as fraud or lost productivity due to the disruption of business, worsened by lengthy forensic investigation, complex restoration of compromised systems, and subsequent brand damage.
The question then is: Are manufacturers doing enough to mitigate the risk of cybercrime and embed data protection? Preventative security measures should be both end-to-end across the technology stack and integrated across the product life cycle and IoT ecosystem, from design and manufacturing through to implementation and product obsolescence. GDPR has heightened the importance of taking such measures due to the implications of not complying to the regulatory framework. Previously your brand’s reputation may have been on the line for not taking such measures; now the most serious violations of GDPR can lead to fines of up to €20 million or 4 percent of revenue (whichever is greater) as well.
As such, proactive holistic security planning enables a manufacturer to manage cybersecurity risk and regulation while avoiding costly recalls, design changes and heavy penalties.