The Internet of Things, or IoT, refers to the broad range of internet-connected devices that offer many different services and functionality. From consumer products, like digital assistants and remotely accessible security cameras, to smart hospitals and manufacturing plants, the potential advantages of the IoT are nearly limitless. But there’s also an opportunity cost associated with this connected world.

Opportunity cost is an economic principle that simply means if you choose Option A (whatever that may be), you are effectively giving up the opportunity to choose Option B. The concept of work/life balance is a great example. The more someone works, the more money they’ll have. But that comes at the expense of having less time. So time is the opportunity cost.

The opportunity cost of IoT is similar: It can improve the quality of life at the cost of risking privacy, security, and even physical safety. Let’s examine all three of those risks.

Privacy
Smart devices collect a significant amount of data from users and their environments. If not properly secured, that data could be accessed by unauthorized parties for malicious purposes such as identity theft – a type of fraud where someone uses stolen personal information to open accounts in the victim’s name.

Security
Many devices lack adequate security features, which makes them highly susceptible to cyberattacks. They also often ship with default passwords that some consumers fail to update, which makes those devices especially vulnerable.

Safety
Imagine a criminal discovered a vulnerability of an internet-connected machine at a factory that allowed them to take control of the machine. They could exploit that vulnerability to cause physical damage and put the physical safety of workers at risk.

Clearly, IoT unlocks an amazing world of potential, but it also unlocks a world of concerns. The question then becomes: How can we take advantage of that potential while mitigating some of those concerns? At work, the answer is simple: Follow policies, especially where connecting personal devices to an organization’s network is concerned.

Article retrieved from The Internet of Hackable Things by The Security Awareness Company – KnowBe4, Inc. (2023)