Sales of Internet of Things (IoT)/connected devices may fall short of their potential due to cybersecurity concerns, according to a new report from KPMG Cyber, the “Consumer Loss Barometer.”
The study found that nearly a third of consumers have already limited their use of IoT/connected devices due to security concerns, and 61 percent said they would use more IoT/connected devices if they had greater confidence in their security. Nearly three-fourths of millennials—now the largest consumer group—said that they would use more IoT/connected devices if they were more confident in their security. In fact, 66 percent of consumers are concerned that emerging IoT/connected devices will be hacked.
The KPMG Consumer Loss Barometer, a survey and report of 750 consumers and 403 CIO, CISO, CTO and CSOs, details how consumers of internet-enabled services would react in the event of a hack against key consumer industries (financial services, technology, automotive and retail). The consumer data was then matched with the responses from cybersecurity executives across these four industries on how each is preparing for cyber-attacks.
As consumers acquire more advanced technology, the study shows gaps in what technology companies are doing to protect their customers. Nearly 40 percent of technology companies had not invested capital funds in cybersecurity in the past year, while 76 percent of the same technology executives reported having had a data breach in the past two years. Yet, 15 percent of technology companies say they don’t have a leader in charge of information security.
Other findings from the study:
• 42 percent of consumers (27 percent of baby boomers, 57 percent of millennials) would store more personal information on cloud/social media accounts or use them more if they had greater confidence in their security.
• 71 percent of consumers would switch/disable their cloud/social media account if their account was hacked and personal information as well as postings and photos were exposed/stolen.
• 64 percent of consumers are extremely or somewhat concerned that their cloud/social media account may be hacked.