Balance This: Maximizing IoT Advantages while Mitigating Data Privacy Risks for Organizations
Balance This: Maximizing IoT Advantages while Mitigating Data Privacy Risks for Organizations
Although the Internet of Things (IoT) or connected devices are not a new area of technology, the emerging innovations and advancements in computing like Web 3.0, the Metaverse, 5G, WiFi 6, low power chips, quantum computing, decentralization, cloud computing, etc. and the collection of new data types are creating new capabilities, and Data Privacy risks as organizations increase their use of IoT technologies. The promise of IoT uses are tremendous, but as these devices become more complex and sophisticated in the data they capture and store, this also increases the Data Privacy threats. So how should organizations balance the IoT advantages while mitigating Data Privacy risks? Organizations must be prepared to deal with the facts about IoT devices, evaluate the over-collection of personal data, guard against unsecured data storage or data transmission, and mitigate against the risk of improper data disposal.
The Facts: The Good News and the Not-So-Good News about IoT Devices
The Good News about IoT Devices:
IoT has the potential to generate $4T to $11T in economic value by 2025. (McKinsey Global Institute)
83% of organizations that employ IoT technology have reported a significant increase in business efficiency. (Aruba Research Report)
More than 80% of senior executives across industries, on average, say IoT is critical to some or all lines of their business. (Statista)
55% of companies believe third-party IoT providers should have to comply with IoT security and privacy regulations. (SafeNet)
The Not-So-Good News about IoT Devices:
The amount of data generated by IoT devices is expected to reach 73.1 ZB (zettabytes) by 2025. (IDC)
98% of all IoT device traffic is unencrypted, exposing personal and confidential data on the network (Palo Alto Networks IoT Threat Report )
IoT devices are typically attacked within five minutes of connecting to the internet. (NETSCOUT Threat Intelligence Report)
The exponential growth of IoT devices has overtaken the number of computers that organizations have in their enterprises, and there will be new and improved innovations that will impact IoT and its uses at a rapid pace. This highlights the need for organizations to take a proactive approach to balance the advantages of IoT devices with the need to protect personal data.
Over-collection of Personal Data
One key Data Privacy risk associated with IoT devices is the over-collection of personal data. IoT devices often collect and store large amounts of personal data, including sensitive information such as financial and health records. This data may be collected without the individual's knowledge or explicit consent, leading to privacy concerns. To mitigate this risk, organizations should implement clear and concise privacy policies that outline the types of data collected, how it will be used, and how long it will be stored. Additionally, organizations should only collect the minimum amount of personal data necessary to fulfill a specific purpose and should provide individuals with the option to opt out of data collection.
Unsecured Data Storage or Data Transmission
Unsecured data storage or transmission is a significant Data Privacy risk associated with IoT devices. IoT devices often transmit sensitive data over unencrypted networks, making them vulnerable to cyberattacks and device eavesdropping. In addition, many IoT devices store data on unsecured storage systems, making them vulnerable to theft. Organizations should ensure that data is encrypted both in transit and at rest to mitigate these risks. Additionally, organizations should implement robust access control mechanisms to restrict unauthorized access to data and regularly monitor their networks for suspicious activity.
Improper Data Disposal
A Data Privacy risk associated with IoT devices is improper data disposal. IoT devices may store data indefinitely without proper data disposal policies, leading to privacy risks. To mitigate this risk, organizations should implement data disposal policies that dictate when data should be deleted and how it should be securely erased at the “end of life” of device use. Additionally, organizations should ensure that data is only stored on secure, encrypted storage systems and that sensitive information is regularly purged from these devices.
Organizations can benefit from the advantages offered by IoT devices while mitigating Data Privacy risks by implementing clear and concise safeguards and policies, ensuring data is encrypted both in transit and at rest and implementing proper data disposal policies. By taking these steps, organizations can balance the benefits of IoT devices with the need to protect personal data, reducing the risk of data breaches and protecting sensitive information. The promise of IoT is immense, and organizations must be prepared to address the Data Privacy risks associated with connected devices to realize the full potential of IoT technologies and make Data Privacy a business advantage.
