31% Of Consumers Limit Use Of IoT/Connected Devices; 61% Would Use More If Greater Confidence In Security

A new report released today by KPMG Cyber reveals that nearly one third of consumers are limiting their use of IoT connected devices due to security concerns and nearly three-quarters of millennials would use more connected devices if they had more confidence in their security

Sales of the technology industry's most-talked-about products, Internet of Things (IoT)/connected devices, may fall short of their potential due to cyber security concerns, according to a new report from KPMG Cyber called 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.

"Today's consumers understand that the more advanced Internet of things/connected devices become, the more data they acquire and the more valuable the data is to a hacker," said Gary Matuszak, Global and U.S. Chair, KPMG Technology, Media and Telecommunications. "While consumers want more of this technology, their loyalty will be earned by technology companies that educate their consumers on how to protect themselves and is transparent on how this data is being collected and protected."

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 cyber security 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.

"With more choices for consumers than ever for products and services, technology companies can't afford to get cyber security wrong," said Vijay Jajoo, Technology Leader for KPMG Cyber. "New products and services need to have cyber security engrained from the beginning of their development. With consumers clamoring for cyber protections, devices that are deemed unsecure or brands that have a reputation for poor security will fail quickly."

Other technology 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.