What We Need to Do in the Fight against IoT Fraud and Identity Theft

It’s also important to remember to attend to the security of an IoT device once it has been decommissioned. E-recycling initiatives provide important services that not only reduce electronic waste impact from physical devices but also ensure that they are thoroughly wiped clean of user information and any other data that you do not want exposed. It’s not just about identity data at risk of being stolen; a hacked IoT device can also provide a gateway to other associated devices and networks.

In the IoT world, finding ways to improve security to prevent these attacks is important, but security can only be the first line of protection, not the end in itself. After all, the end game for hackers and fraudsters doesn’t stop at just breaking into a web cam or another device—it’s the damage they do once they gain access that is the real problem. This reason is why security and fraud management must be tightly coupled together in order to address this risk.  

Fraud management systems must work seamlessly with security protection to constantly monitor information across an organization, watch for unusual trends and identify fraud before it happens. That way, when security is breached, the fraud management system will be able to follow the breach’s path and identify patterns that reveal hidden relationships and suspicious movements and minimize any potential damage. In order to manage this, service providers must assess whether their current fraud management system is up to the IoT challenge. In particular, they need to ensure the core capabilities of their fraud management system include: 

• Machine learning 
• Self-service analytics 
• Processing capabilities supported by Hadoop for continuous monitoring of huge data volumes 
• Visual interfaces that help make sense of data in real-time 
• Adaptive case management for and effective call to action 
• Mobility 

Underpinning these capabilities is the need for automation across the platform. When fraudsters access your network, the challenge is to single them out of the crowd, especially when they seek to trick your controls by replicating the behavior of ordinary customers. In addition, the interconnectedness of IoT means that an IoT attack cannot be contained to a single location. Simply put, the scale of IoT and the number of data points that traverse the network mean that service providers can no longer depend solely on human judgement. By implementing automated analysis, CSPs have the tools to combine data with context and to create the insights to make the right decisions at the right time. Automated analysis supports the most informed decision-making by repeatedly adding the latest data. And by providing an accumulated history, it broadens your perspective when assessing how to respond to suspicious behavior.  

The IoT is a treasure trove for cybercriminals, offering up billions of vulnerable devices, a huge attack surface, no regulation and vast quantities of personal data. Cybercriminals and fraudsters are just waking up to what they can potentially gain from the IoT, and the market is being flooded with new ‘hackable’ devices every day.  Businesses and homes need to prepare for this new world by having the tools and resources available to protect every bit of our identities.