Use of blockchain technology to help secure IoT data, services and
devices doubles in a year

AMSTERDAM–(BUSINESS WIRE)–Gemalto, the world leader in digital security, can today reveal that
only around half (48%) of businesses can detect if any of their IoT
devices suffers a breach. This comes despite companies having an
increased focus on IoT security:

• Spending on protection has grown (from 11% of IoT budget in 2017 to
  13% now);
• Nearly all (90%) believing it is a big consideration for customers; and
• Almost three times as many now see IoT security as an ethical
  responsibility (14%), compared to a year ago (4%)

With the number of connected devices set
to top 20 billion by 2023, businesses must act quickly to ensure
their IoT breach detection is as effective as possible.

Surveying 950 IT and business decision makers globally, Gemalto found
that companies are calling on governments to intervene, with 79% asking
for more robust guidelines on IoT security, and 59% seeking
clarification on who is responsible for protecting IoT. Despite the fact
that many governments have already enacted or announced the introduction
of regulations specific to IoT security, most (95%) businesses believe
there should be uniform regulations in place, a finding that is echoed
by by consumers¹ 95% expect IoT devices to be governed by
security regulations.

“Given the increase in the number of IoT-enabled devices, it’s
extremely worrying to see that businesses still can’t detect if they
have been breached,” said Jason Hart, CTO, Data Protection at
Gemalto. “With no consistent regulation guiding the industry, it’s no
surprise the threats – and, in turn, vulnerability of businesses – are
increasing. This will only continue unless governments step in now to
help industry avoid losing control.”

Security remains a big challenge

With such a big task in hand, businesses are calling for governmental
intervention because of the challenges they see in securing connected
devices and IoT services. This is particularly mentioned for data
privacy (38%) and the collection of large amounts of data (34%).
Protecting an increasing amount of data is proving an issue, with only
three in five (59%) of those using IoT and spending on IoT security,
admitting they encrypt all of their data.

Consumers¹ are clearly not impressed with the efforts of the
IoT industry, with 62% believing security needs to improve. When it
comes to the biggest areas of concern 54% fear a lack of privacy because
of connected devices, followed closely by unauthorised parties like
hackers controlling devices (51%) and lack of control over personal data
(50%).

Blockchain gains pace as an IoT security tool

While the industry awaits regulation, it is seeking ways to address the
issues itself, with blockchain emerging as a potential technology;
adoption of blockchain has doubled from 9% to 19% in the last 12 months.
What’s more, a quarter (23%) of respondents believe that blockchain
technology would be an ideal solution to use for securing IoT devices,
with 91% of organisations that don’t currently use the technology are
likely to consider it in the future.

As blockchain technology finds its place in securing IoT devices,
businesses continue to employ other methods to protect themselves
against cybercriminals. The majority (71%) encrypt their data, while
password protection (66%) and two factor authentication (38%) remain
prominent.

Hart continues, “Businesses are clearly feeling the pressure of
protecting the growing amount of data they collect and store. But while
it’s positive they are attempting to address that by investing in more
security, such as blockchain, they need direct guidance to ensure
they’re not leaving themselves exposed. In order to get this, businesses
need to be putting more pressure on the government to act, as it is them
that will be hit if they suffer a breach.”

Additional Resources

• Visit the State of State of IoT Security website
• Learn more about Gemalto’s IoT
  data security solutions
• Download the IoT Security – Key ingredients for success Whitepaper
• Visit the Gemalto dedicated IoT
  Security microsite
• Download Gemalto’s
  ‘Connected Living’ Report
• Directive
  on Security of Network and Information Systems EU
  ePrivacy Regulation that will come into effect in 2019

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the global leader in digital
security, with 2017 annual revenues of €3 billion and customers in
over 180 countries. We bring trust to an increasingly connected world.

From secure software to biometrics and encryption, our technologies and
services enable businesses and governments to authenticate identities
and protect data so they stay safe and enable services in personal
devices, connected objects, the cloud and in between.

Gemalto’s solutions are at the heart of modern life, from payment to
enterprise security and the internet of things. We authenticate people,
transactions and objects, encrypt data and create value for software –
enabling our clients to deliver secure digital services for billions of
individuals and things.

Our 15,000 employees operate out of 114 offices, 40 personalization and
data centers, and 35 research and software development centers located
in 47 countries.

For more information visit www.gemalto.com,
or follow @gemalto
on Twitter.

¹ Gemalto Connected Living in 2030 Report

Contacts

Gemalto media contacts:
Tauri Cox
North America
+1
512 257 3916
tauri.cox@gemalto.com

Sophie Dombres
Europe Middle East & Africa
+33 4 42 36 57
38
sophie.dombres@gemalto.com

Piyush Prakash
Asia Pacific
+91 11 6623 1200
piyush.prakash@gemalto.com

Alexis Camarillo
Latin America
+52 5521223627
alexis.camarillo@gemalto.com