As businesses and organizations of all sizes and types struggle with IoT device security, a new study has found 98 percent have experienced certificate outages in the past 12 months, costing an average of over $2.3 million.

Keyfactor and Vanson Bourne released findings from an independent survey and analysis that examines the state of IoT security for both manufacturers and end users.

The report, “Digital Trust in a Connected World: Navigating the State of IoT Security,” reveals concerns and challenges modern businesses face when establishing digital trust in today’s connected world and shows 97 percent of organizations are struggling to secure their IoT and connected products to some degree.  

“Organizations worldwide are under mounting pressure to ensure their IoT and connected devices are protected while navigating an increasingly complex digital landscape that requires complete trust,” said Ellen Boehm, senior vice president, IoT Strategies and Operations at Keyfactor. “The results of this survey demonstrate the importance of identity-first security for those who manufacture IoT devices and those who deploy and operate them in their environment to establish digital trust at scale.”

Boehm explained that most organizations implement PKI solutions in their IoT security strategy, which is a huge step in the right direction. And, yet, with a vast majority of organizations facing IoT security challenges, security teams are struggling to leverage their tools efficiently, she continued. 

“Ensuring that IoT device security is managed throughout its lifecycle will go a long way in both eliminating costly certificate outages and enhancing the long-term viability of IoT within the enterprise,” she said.   

The monetary damages from outages that organizations have suffered in the past year are not the only expense of inefficient IoT security. The report found that 89 percent of respondents’ organizations that operate and use IoT and connected products have been hit by cyber-attacks at an average cost of $250,000. Moreover, in the past three years, 69 percent of organizations have seen an increase in cyber-attacks on their IoT devices. The March attack on Amazon’s Ring that exfiltrated sensitive customer data such as recorded footage and credit card numbers is an example of the increase in IoT attacks.  

“Many IoT security strategies fail to prevent and protect against IoT-targeted cyber-attacks because organizations lack the proper education and support needed to fully understand the task at hand,” Boehm said. “Over half of respondents agree that their organization doesn’t have the proper awareness and expertise to prepare for IoT device cyber-attacks, spotlighting the need for more guidance to fully secure their devices. Organizations can’t protect against what they cannot understand.”

Other key findings from the report: 

• Proliferating growth of IoT devices and connected products in organizations: In the past three years, respondents reported a 20 percent average increase in the number of IoT and connected products used by organizations.
• IT professionals are not fully confident in the security of their IoT and connected devices: 88 percent of organizations agree that improvements are needed in the security of IoT and connected products in use within their organization, with 37 percent of respondents reporting that significant improvement is needed and 60 percent reporting that some improvement is needed. When it comes to specific strategies, 4 in 10 organizations report that they strongly agree they would benefit from using a PKI to issue digital identities on the IoT and IIoT devices in their environment. 
• IoT security budgets are increasing but are being used to cover staggering costs from certificate outages: While budgets for IoT device security are increasing year over year, with an anticipated increase of 45 percent in the next five years, half (52 percent) of that budget is at risk of being diverted to cover the cost of successful cyber breaches on IoT and connected products. 
• Organizations and manufacturers are split on who is responsible for IoT security: Of the respondents surveyed, 48 percent believed that the manufacturer of IoT or connected devices should be at least mostly responsible for cyber breaches on their products. 

The study was conducted by Vanson Bourne on behalf of Keyfactor with responses from 1,200 IoT and connected product professionals across North America, EMEA and APAC. All respondents had some responsibility or knowledge of IoT or connected products within their organization and included original equipment manufacturers (OEMs) and those who are using and operating connected devices within their organization.

To view the complete findings and download the report, go here.