Cybersecurity in the smart home

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  Quantumrun Foresight
• June 14, 2023

Smart homes are designed to provide homeowners with a secure, convenient, and energy-efficient living experience. They allow residents to control and automate various aspects of their home, such as lighting, heating, and security, from a single device or app. However, the increasing adoption of Home of Things (HoT) has also brought the risk of these devices being hacked.

Securing the HoT context

Smart gadgets require data access to provide users with the best experience possible. However, these devices' lack of safety standards can lead to security breaches that put user data at risk. Hackers can exploit vulnerabilities in Internet of Things (IoT) devices, allowing them to access sensitive information such as passwords, control home automation systems, and even listen in on private conversations through voice assistants.

Mirai bots are some examples of malware that can infiltrate networked devices and override their controls. As early as 2016, the Mirai botnet infiltrated IoT devices, amassing a network of 100,000 hijacked devices. The collective computing power of this large group of devices provided a formidable resource to exploit. To prevent security breaches like Mirai, users need to ensure that they keep their devices up to date with the latest security patches and firmware updates. 

Manufacturers can also improve IoT security by implementing safety standards and making regular security updates more accessible. However, the public’s role in security is equally important; for instance, the public must gradually accept the chore of reading the privacy statements of products to better understand the type of data being collected and how it will be used. Users should also periodically delete their data and ensure their security systems and bank account data are placed on a separate network, away from voice assistants and other IoT devices. Another common mistake is failing to change the default passwords on these devices. 

Disruptive impact 

As more cyberattacks and data breaches occur, consumers' trust in the smart home industry may decrease. Unless more IoT device manufacturers can demonstrate that they take the security of their products seriously, consumers will likely become more hesitant to adopt them. 

To address these concerns, IoT device manufacturers will have to publicly disclose device vulnerabilities and focus on releasing regular product software patches to their consumers. These efforts will likely require increased investment in security research and the development and adoption of best practices for securing connected devices. In addition, manufacturers will need to establish more transparent policies for handling user data. Failure to address these issues could limit the industry's growth, including increasing lawsuits and regulatory fines. Long term, the industry may consolidate around a few large HoT manufacturers with the budgets necessary to absorb the added cost of ongoing cybersecurity monitoring and development efforts.

Consumers will likely become more proactive in determining the risks associated with their smart home technology. These steps may include educating themselves about risk mitigation techniques, such as setting strong passwords and regularly updating software. Additionally, consumers may become more selective about the types of HoT devices they purchase, opting for those with a proven track record of security and privacy protection. 

Implications of securing the HoT

Wider potential implications of securing the HoT may include: 

• The emergence of international HoT device security standards.   
• Governments holding companies liable if hacking, thefts, and breaches do not decrease. 
• Governments introducing laws to protect consumers and ensure that devices are secure. This move can lead to concerns around privacy and government surveillance, including debates around the role of the government in regulating the use of smart home technology.
• The popularity of services that notify users of anomalous IoT device behavior.
• Users discarding and replacing old smart device models.
• Secure smart homes’ value increasing, leading to a rise in property prices. Similarly, cybersecured smart homes may enjoy a reduction in insurance premiums. 
• Better smart home technology helping seniors and people with disabilities to remain independent longer, leading to fewer carers needed.
• Private sector investments that result in new and innovative cybersecurity solutions. Likewise, such investments will drive the increased recruitment of cybersecurity professionals.

Questions to consider

• Do you think companies that provide cheap, low-security IoT devices at low costs will ever run out of business?
• Will smart homes and gadgets ever be completely trustworthy?