Internet of Things - the dream and the nightmare

IoT: the dream
and the nightmare…
Kate Carruthers #eIoT2015

Slides are online:
http://www.slideshare.net/carruthk
Oct-2015 © 2015 Kate Carruthers 2

IoT is part of the
digital
transformation of
business, the
economy, and
society

Industrial
revolution
Digital
revolution
IoT
revolution
Industrial
internet. Rise of
networked
industry.
Convergence of
industrial, digital,
analytics, &
connectivity.
Distributed
information and
communication
networks. Rise of
networked economy
powered by apps.
Harnessing
machines to drive
economies of scale.
Shift away from
agriculture based
economies.

Source: Matt Turck, Internet of Things Landscape (Version 3.0), http://www.slideshare.net/mjft01/internet-of-things-42280078/1

Source: IOT Philippines Inc.
http://www.iotphils.com/solutions/smart-home/

Source: http://blog.csiro.au/a-much-smarter-watch-how-our-flexible-batteries-and-electrified-fabrics-can-improve-wearables/

“The real role of wearables
that no one talks about is all
these smart things around
you have no idea what’s
happening with you…”
- Hosain Rahman, CEO Jawbone
Source: 'Ingestibles' could become the new wearables faster than you think, Alicia Marie Tan, Mashable, Oct 2015, http://mashable.com/2015/10/14/jawbone-ingestibles/#RqDiEDnH3Sql

“I always use the example of,
no matter how smart my
thermostat is, it has no idea if
I’m hot or cold.”
- Hosain Rahman, CEO Jawbone
Source: 'Ingestibles' could become the new wearables faster than you think, Alicia Marie Tan, Mashable, Oct 2015, http://mashable.com/2015/10/14/jawbone-ingestibles/#RqDiEDnH3Sql

Robyn Lewis
founder and CEO
VisitVineyards.com
Thin film write-protected
NFC that enables post sale
communication between
seller & customer about the
product

Source: GE 2013 http://gelookahead.economist.com/infograph/industrial-internet-the-power-of-1-2/

Source: http://gelookahead.economist.com/infograph/the-industrial-internet-oil-and-gas/

Source: A Cyber-Physical Systems architecture for Industry 4.0-based manufacturing systems, Jay Lee, Behrad Bagheri, Hung-An Kao, 2015,
http://www.sciencedirect.com/science/article/pii/S221384631400025X

Cisco says US$14 trillion IoE value
• asset utilization (reduced costs) of $2.5 trillion
• employee productivity (greater labor
efficiencies) of $2.5 trillion
• supply chain and logistics (eliminating waste)
of $2.7 trillion
• customer experience (addition of more
customers) of $3.7 trillion
• innovation (reducing time to market) of $3.0
trillion
Source: CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion, 2013

Source: Greenberg, A., Hackers Remotely Kill a Jeep on the Highway—With Me in It, Wired , July 2015 http://www.wired.com/2015/07/hackers-remotely-kill-jeep-highway/

Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o
Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in
Houston, Texas. The stranger took control of the unit and used it to scream obscenities
at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her
cochlear implant turned on at the time, otherwise she would have heard the stranger
yelling, “Wake up Allyson, you little slut!”

Bloomberg, Data Breaches in the US, at 4 Sep 2014

• 3rd party HVAC
firm attack
vector
• Security
software
disabled
• PCI DSS didn’t
save them

Bloomberg, Oct 2014

JP Morgan
• Sarbanes-Oxley Act (SOX)
• Payment Card Industry Data Security
Standard (PCI DSS)
• Gramm-Leach-Bliley Act (GLB) Act
• Electronic Fund Transfer Act, Regulation E
(EFTA)
• Free and Secure Trade Program (FAST)
• Fair and Accurate Credit Transaction Act
(FACTA), including Red Flags Rule
• Federal Rules of Civil Procedure (FRCP)

“How do consumers know
that the products and
services are protected”
David Kleidermacher, Blackberry CSO
Source: IoT security forcing business model changes, panel says, Oct 2015 http://www.scmagazine.com/iot-security-forcing-
business-model-changes-panel-says/article/448668/

Miller Newton, CEO of PKWare:
“there's not a lot of
authentication on the IoT.
It is easy to impersonate”
Source: IoT security forcing business model changes, panel says, Oct 2015 http://www.scmagazine.com/iot-security-forcing-
business-model-changes-panel-says/article/448668/

Source: CCTV Botnet In Our Own Back Yard, Ofer Gayer, Or Wilder, Igal Zeifman, Incapsula blog 2015, https://www.incapsula.com/blog/cctv-ddos-botnet-back-yard.html
CCTV Botnet at the local mall

“Business models will have
to change. We used to build
them [products], ship them and
forget about them until we had
to service them,”
“We've moved to a new world
where we have to ship and
remember.” Source: John Ellis, Ellis & Associates, IoT security forcing business model changes, panel says, Oct 2015
http://www.scmagazine.com/iot-security-forcing-business-model-changes-panel-says/article/448668/

“Targeted Intrusions By
Nation-State Actors Pose A
Major Cyber Threat Going
Into 2015”
Source: Targeted Intrusions By Nation-State Actors Pose A Major Cyber Threat Going Into 2015, Amanda Vicinanzo, 02/12/2015, Homeland Security Today,
http://www.hstoday.us/single-article/targeted-intrusions-by-nation-state-actors-pose-a-major-cyber-threat-going-into-2015/1f96ee7a4b2867f1b1511387660bb4b8.html

Security
Privacy
Geopolitics

Thank you
Kate Carruthers
UNSW Australia
k.carruthers@unsw.edu.au
@kcarruthers
http://www.slideshare.net/carruthk

Internet of Things - the dream and the nightmare

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