The Internet of Things: Privacy Considerations

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1 The Internet of Things: Privacy Considerations Presented by: Jordan Reed, Managing Director Joe Marcum, Senior Manager Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Vet. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

2 PRESENTERS Jordan Reed, Managing Director IoT Introduction and Overview Joe Marcum, Senior Manager IoT Application and Usage 2

3 INTERNET OF THINGS - IOT The Internet of Things (IoT) is an environment in which objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet. Graphic by Harbor Research Imagine 3

4 INDUSTRIAL AGE < s

5 INFORMATION AGE 2015 Automobile 100M LOC 2013 MS-Office 45M LOC 2010 Smartphones 2000 s Laptop 1969 Apollo k LOC 1969 Apollo 11 Computing Power 1970 s Super Computer 1980 Suttle 400k LOC 1990 s PC 5

6 EXPONENTIAL AGE Due to the impact of exponentials, we won t experience a hundred years of progress in the 21st century, it will be more like twenty thousand years of progress Sony (77M) 2013 Target (110M) B <1800 s Robbery (1) <1800 s Train Robbery (100) 1974 Internet Created M People Online 2007 TJ Maxx (45M) B 500M Devices Connected B 12.5B Devices Connected 6

7 CHANGING BUSINESS MODELS Products Companies Customers 7

8 INTERNET OF THINGS - IOT The number of internetconnected devices surpassed the number of human beings on the planet in By 2020, internetconnected devices are expected to number up to 50 billion. Human Beings vs. Internet Connected Devices Graphic by Harbor Research 8

9 FUTURE OUTLOOK The IoT is a combination of: Sensors Connectivity People & Processes 9

10 SENSORS & ACTUATORS We are giving our world a digital nervous system. Mobile Apps Social Media Efficiency & Convenience Target Marketing Graphic by Harbor Research 10

11 CONNECTIVITY These inputs are digitized and placed onto networks. Graphic by Harbor Research 11

12 PEOPLE & PROCESSES These networked inputs can then be combined to integrate data, people, processes and systems Graphic by Harbor Research 12

13 ELEMENTS OF IOT Primary IoT components: Collection made up of sensors, actuators Transmission RFID, Bluetooth, Wi-Fi, Cellular and wired networks Collection Transmission Data Storage on demand storage and computing tools for data analytics Presentation visualization and data interpretation tools Security and Privacy Internet Of Things Visualization and Data Interpretation Data Storage and Analytics Security device configuration, user access, and updates 13

14 Source: Harbor Research 14

15 DEGREE OF ACTION DIVERSITY OF THINGS The convergence of these technologies includes various degrees of sophistication DEGREE OF SENSING Efficiency: Control and React Gathered data is actioned more systematically, with greater automation, remote control, and some trends analysis and reporting. Low Visibility: Connect and Monitor Individual assets, each gathering just a small amount of data, are connected to enable manual monitoring as part of a single organizational process, with simple threshold-based exception alerting. High Low Innovation: Transform and Explore Data and insights are used to support entirely new business models, products and services, and data economies. Agility: Predict and Adapt High Sensed data is augmented by external data sets for complex predictive analysis for preemptive action, closely integrated with a number of organizational processes. DEGREE OF ACTION DEGREE OF SENSING Verizon s IoT sophistication model,

16 INTERNET OF THINGS CONSUMER TECHNOLOGY Phones / Tablets Wearables Home Appliances Smart Thermostats 16

17 INTERNET OF EVERYTHING NOT JUST CONSUMERS Based on Moor Insights & Strategy s report Segmenting the Internet of Things (lot) 17

18 ENERGY AND UTILITIES Connected Electricity Smart Meters Automated data collection Detailed electricity usage Automatic detection of outages can lead to faster repairs Oil and Gas Sensors in the Field Live production data enables smart forecasting Optimize well production Connected systems for remote site management allow for start up / shut down of equipment Combined data sources reduce impacts from weather and other conditions 18

19 ENERGY AND UTILITIES Insurance Telematics Monitor driving behavior Data analysis to calculate more precise customer pricing Automotive Connected Cars Road sensors for weather and traffic monitoring Autonomous Cars o Reduced Traffic o Increased Safety Automatic accident reporting for improved response time 19

20 IOT APPLICATIONS IN THE MEDICAL FIELD Proactive fulfillment by replenishing supplies Devices report back to the mother ship when critical operational components are being depleted Efficient scheduling by leveraging utilization Provides daily utilization statistics that can be leveraged for patient scheduling (e.g. MRI machines). Monitor Both Machine and Patient Health through sensors Provide unparalleled access to individual health plus reduce device downtime through remote monitoring and support Ingestible sensors Grain sized ingestible sensors/pills communicate if pills are taken and health habits. 20

21 THE INTERNET OF THINGS : RISKS Source: Cisco, SlideShare 21

22 PRIVACY CONCERNS Source: 22

23 YOUR LICENSE TO LINKEDIN Your License to LinkedIn You grant LinkedIn a nonexclusive, irrevocable, worldwide, perpetual, unlimited, assignable, sublicenseable, fully paid up and royalty-free right to us to copy, prepare derivative works of, improve, distribute, publish, remove, retain, add, process, analyze, use and commercialize, in any way now known or in the future discovered, any information you provide, directly or indirectly to LinkedIn, including, but not limited to, any user generated content, ideas, concepts, techniques and/or data to the services, you submit to LinkedIn, without any further consent, notice and/or compensation to you or to any third parties. Any information you submit to us is at your own risk of loss. 23

24 IMPLEMENTATION CHALLENGES Source: 24

25 PUSH FOR CLOUD FOR THE INTERNET OF THINGS HUBS Cloud IoT Hubs will be the bridge between users devices and their solutions in the cloud, allowing them to store, analyze and act on that data in real time. Microsoft launches Azure IoT Hub Cisco acquires IoT vendor Jaspar for $1.4B Amazon launches AWS IoT / Dash Amazon Dash Amazon s Dash Replenishes System (DRS) launches. Devices such as Brother s printers can automatically reorder supplies with zero human effort. Dash Buttons Small, Wi-Fi enabled, instant ordering of predetermined products uses credit card on file and delivers with 2-day shipping 25

26 IDENTITY MANAGEMENT IN TODAY S WORLD USAA - 1st financial institution to roll out biometric security with its mobile banking app. Allowing users to log in through fingerprint, voice, or facial recognition. Nymi successfully tests Nymi Band which is a wrist band heart rate monitor which doubles as an NFC mobile payment device using your EKG to verify your identity. Fifth Third Bank is introducing Touch ID biometric capabilities to its mobile banking app for the iphone. Touch ID allows fingerprint authentication for enabled devices, letting customers log into their Fifth Third app with their fingers or thumbs instead of a password. 26

27 IDENTITY MANAGEMENT Business point of view = IoT enables new opportunities, use cases and scenarios. Technical point of view = IoT consists of uncountable devices, sensors or actuators or simply objects connected to services in the Internet. Today s separated solutions and niche standards have no overall framework for how to recognize and manage identities across different solutions. 1) How do we standardize identifiers? 2) How do we separate components within IoT? 3) How do we define ownership and identity relationships? 4) How do we protection Identity? 27

28 OWASP TOP 10 IOT SECURITY CONCERNS/FOCUS AREAS 1 Insecure Web Interface 6 Insecure Cloud Interface 2 Insufficient Authentication/Authorization 7 Insecure Mobile Interface 3 Insecure Network Services 8 Insufficient Security Configurability 4 Lack of Transport Encryption/Integrity Verification 9 Insecure Software/Firmware 5 Privacy Concerns 10 Poor Physical Security 28

29 29

30 THANK YOU Jordan Reed Managing Director Joe Marcum Senior Manager Phone: Houston, Texas Phone: Houston, Texas Powerful Insights. Proven Delivery. Powerful Insights. Proven Delivery. 30

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