DES MOINES, Iowa–A new white paper examines the growing fraud risk posed by the Internet of Things (IoT).
Written by Ashley McAlpine, fraud prevention manager with TMG, the paper notes criminals always take the path of least resistance, and for digital fraudsters that increasingly means gaining entry via devices that are part of the Internet of Things, Internet-enabled devices for the home, car and office that are often poorly protected.
“Gadgets that will one day power the Internet of Banking Things, these connected devices are full of potential to deepen financial institutions’ relationships with consumers, yet too new to have been fully vetted for security vulnerabilities,” McAlpine asserts in the paper.
The white paper notes that Payment fraud experts are monitoring the development of the Internet of Things with a watchful eye, due largely to the likelihood IoT solutions will change dramatically the way consumers buy and pay for goods and services. “Because financial payments are one of the daily tasks keeping people from things they would rather be doing, many IoT solutions are likely to connect to payment systems,” McAlpine writes.
Examples McAlpine points to are smart meters that pay a customer’s monthly water bill or parking apps that automatically pay the garage or meter fees.
“Financial institutions, too, are beginning to explore how plugging into the growing IoT can improve relationships with consumers,” writes McAlpine. Early IoT banking moves she cites in the paper are Capitol One’s partnership with Amazon Echo and Mastercard’s collaboration with Samsung to power grocery orders made by smart refrigerators. “As more financial institutions jump into IoT products and services, security must be at the top of the consideration list,” she writes.
Four early best practices for securing IoT solutions are included in the paper:
- Secure in layers
- Change passwords and install updates
- Think beyond the device
- Remember the basics
The paper, “Security Concerns in the Internet of Banking Things,” can be found at www.tmg.global/trending.