There has been a dramatic increase in IoT-related data breaches specifically due to an unsecured IoT device or application since 2017, says a study released by The Santa Fe Group.
The study found these breaches accounted for 26%, up from 15%, and the figures might actually be greater because most organizations are not aware of every insecure IoT device or application in their environment or from third party vendors.
More alarmingly, organizations surveyed have no centralized accountability to address or manage IoT risks.
Less than half of company board members approve programs intended to reduce third-party risk and only 21% of board members are highly engaged in security practices and understand third party and cybersecurity risks in general.
More than 80% of respondents believe their data will be breached in the next 24 months.
“This study proves it’s no longer a matter of if but when and board members of organizations need to pay close attention to the issue of risk when it comes to securing a new generation of IoT devices that have found their way into your network, workplace, and supply chain,” said Cathy Allen, founder and CEO of The Santa Fe Group, Santa Fe, NM.
“The study shows that there’s a gap between proactive and reactive risk management. The time to address this issue is now and not later.”
The study also identifies the following areas in which organizations need to improve:
- While respondents believe a positive tone at the top is important to minimizing business and third-party risks, few companies represented in this study are making board-level governance an essential part of their risk management program.
- The IoT threat landscape is expanding rapidly, yet many companies are not assigning accountability or ownership to the management of IoT risks.
- Staffing and budgets are not adequate to manage third-party IoT risks.
- Third-party risk management (TPRM) programs should include IoT risks in order to evolve and mature their practices.
- IoT risk assessment and due diligence must move from trust assurance to verify control validation techniques.
- Companies should be prepared for IoT regulatory oversight to rise.
- Most companies do not conduct employee training programs on the risks created by IoT devices. Such training must begin now.