The IoT (Internet of Things) market within finance is expected to triple by 2020. But, with the increasing popularity of the Internet of Things (IoT) and Big Data, there will be threat of security challenges. Therefore, finance institutions like banks and insurance firms must be ready to face these challenges.

The global IoT market is expected to grow to $1.7 trillion in 2020 from $655.8 billion in 2014. According to PWC, the financial services farms are expected to face twice more security challenges than other farms. It has been seen that cybercrime is in the second position in economic crime of all.

This new challenge is rising as a threat for all organizations as all are fully dependent on IoT. To overcome this problem, not only financial organizations, Companies dependent on IoT will try to diminish potential threats and speed up their business growth with the help of right security framework and this can be fruitful.

What is IoT Security Challenge

IoT security is the area of endeavor whose job is to protect connected devices and networks in the Internet of things (IoT). To improve security, there should be an IoT device which needs to be directly available over the Internet, should be segmented into its own network and the network access should be restricted.

The Internet of Things engages the growing dominance of objects and entities – known. Today, too much use of IoT communication comes from computing machines and fixed sensor systems are used in businesses as machine-to-machine (M2M) communication, smart energy networks, vehicle to vehicle communication, home and building computerization, and wearable computing devices.

First of all, we need to know two real-life IoT security breaches which have had harmful effects on mainstream businesses.

The Mirai Botnet

In 2016, an IoT, ‘botnet’ took the benefits of openness in TV cameras and routers. After scanning the internet for Telnet ports, it had been found that the botnet had done force-hack its way into the system by using the device’s 61 default credentials. Though this particular attack was restricted to internet-connected TV cameras and routers, the attacks of brute-force can influence any other IoT device.

Connected Cars

Due to the advancements in car technology, by 2025 Ford Motors are expecting to offer driverless vehicles to the market. These superior-quality IoT devices will give more convenience to users by helping them to avoid accidents and manage a wide range of safety technologies, from anti-lock brakes to airbags. But according to security firm Trend Micro, these safety systems are even more vulnerable to hacking and the hack attacks the network protocol known as the Controller Area Network, or CAN. Thus, everything of the car, connected to CAN will be hacked and may give rise to a potential threat.

Identifying and Conquering IoT Security Challenges

We’ve just mentioned two examples of IoT breaches. But now look at how your business will prevent these issues from occurring.

IoT security challenges not only frighten your in-house team, but they will also impact your customer too. The main IoT security anxieties,  according to a Gemalto survey, experienced by consumers are:

• 60 percent of consumers are worried that their IoT data will be leaked

• 90 percent of consumers assume that there should be IoT security guidelines

• 65 percent of consumers are concerned that their IoT devices will be controlled by hackers

But, with the intelligent mindset and advanced technology, your business can overcome IoT security challenges and makes both the business and customers safe. Here are the five most prominent IoT security challenges facing FSI and your organization can use to tackle them

1. Use Biometric authentication and Geolocation

IoT technology requires a transformation in approach, mostly for devices which have essential financial and personal information.

But all IoT devices are not safe enough to stop identity theft and security breaches. For example, there are around 50 percent of smart watches that give chances to users to set a pin code or pattern. At the same time, 87 percent of enterprises are at risk within the IoT devices for themselves.

Biometric authentication, like fingerprint scans and voice recognition, is safer than any other way of securing data. Today we are more familiar with this type of technology by securing data in our mobile phones by using our fingerprints to unlock it. There is another option to secure data is Azure’s multi-factor authentication when you fail to implement biometric functions and it also protects your data by multiple layers of security.

Additionally, a lost payment gadget, for example, a mobile phone or a smartwatch causes less threat if the financial information kept in it is locked and encrypted. If you implement geolocation function, it will allow you to track the location of your device in case it is stolen or lost.

In this way, you can keep your customers’ records secure and seal off any harmful entrants to your business that may produce data breaches and reputational damage. Still, the hackers can enter into your network to steal data.

2. Installing Azure Active Directory

Weak login details cause vulnerability to brute-force attacks for your financial IoT devices. So, if anybody overlooks to follow the right security measures, malware like Mirai botnet will easily hack his devices. It is important to change the default settings of your computer or devices before you use them for business purposes or for data storage otherwise your business assets and customer information will be at risk.

You can overcome the problems of unauthorized access to connected devices by installing Azure Active Directory. You can identify the usual brute-force techniques and attempts that presume device passwords by using the cloud intelligence of Active Directory’s ‘smart lockout’. This tool also finds out potential hackers during the verification of the identity of all the authorized users and invalid users.

3. Increase Patching & Testing

The biggest threat of IoT security challenges not only affects smart devices, but also a common risk to all software operations:

Outdated devices are more vulnerable as they contain dangerous bugs and they are also not technologically advanced. So that hackers target them to steal or misuse your organisation’s data security.

Whatever you do to patch in-branch IoT devices or customer wearables, you have to check and test the stability of every update and device models to guarantee their security posture is very tight. As, customers mostly forget to download updates, put automatic updates or motivate them to stop using outdated models.

4. Hide your IP address

As there is too much insecurity in IoT, businesses need to go beyond ordinary network security, and start to observe all network connections to protect their businesses from hackers.

An IP address is an exceptional internet ID for a user which gives the user’s location and connects different systems and networks collectively, and by that all information is transferred from one to another.

You can use VPN and Tor to protect your IP address and your devices from cyber attacks.

VPN

VPN (virtual private network) is an effective way to keep your IP address protected from cyber attacks. It transmits information through a secure channel. If a VPN channel finds a malicious threat, it will instantly change the connection and move to another server.

To overcome IoT security challenges, you can just sign up to one of the VPN providers online and set up your connection. Right after your system gets activated, your real IP address will be protected and your system will show another IP address through the VPN provider you have chosen.

Tor

This browser is a free software which protects your IP address by bouncing your communication around a scattered network. It always hides your IP address and you can check it by going online secretly. It also stops people watching your internet connection from learning what site you visit and also prevents the site you visit from knowing your physical location.

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