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Last year, we estimated that world expenditure on Physical Security products was $28Bn. Our latest report on Cyber Security shows that of some 10 building technology elements, physical security products were perceived as having the highest risk to cyber security threats. Causing the greatest level of concern here are video cameras, given the recent hacking of huge numbers of surveillance cameras, which were exploited by the Mirai virus and used in DDoS attacks.
When compromised smart building devices can have a profound impact on our physical surroundings and could allow a malicious actor to cause severe damage without having physical access to the building. You have to wonder… why spend some $28Bn on security products and so little on protective measures to prevent cyber attacks?
The attacker’s motivation & objectives are rarely to compromise the physical security or building management system but to use it as the Trojan Horse to gain entry into corporate networks. The interconnected nature of the Internet of Things in Buildings (BIoT) means that cyber attacks can pose risk far beyond the initial point of entry, potentially causing cumulative damages that could permeate into new layers of the enterprise. Extracting important and valuable data.
According to Fred Gordy, director of Cyber security at Intelligent Buildings, LLC, 80% of the time, an attacker’s aim is to infiltrate the corporate network via a building management system, and to get past those controls to accomplish a larger goal or seek a more specific target.
Our report shows that smart building systems and particularly electronic physical security systems can act as “low-hanging fruit” for motivated cyber attackers and will determine the potential impacts and costs of cyber crime to smart building owners, operators and vendors.
Although limited market research has been carried out as to the direct costs of cybercrime on smart buildings, a good indicator of the rising cost implications to businesses is provided by the Ponemon Institute’s annual survey of the costs of cybercrime (see below). This shows that cost impacts are rising steadily over time, with the average cost impact of reported breaches rising 31% between 2013 and 2016 to approaching $10 million.
Meanwhile Cyber security Ventures predicts that annual global costs related to damage and destruction of data, intellectual property theft, lost productivity and fraud are on pace to grow from $3 trillion in 2015 to $6 trillion by 2021.
Costs directly related to BIoT would account for a small proportion of this but given that today it’s the most vulnerable entry point to the Business Enterprise, it shouts out that it needs immediate attention. If not it will create a backlash for IP related physical security devices.
This article was been taken from 2 recent reports – Cyber Security in Smart Commercial Buildings 2017 to 2021 & The Physical Security Business 2016 to 2021.