Connecting The Dots: Key Developments And Best Practices For Evaluating Privacy And Security Risks In Iot Investments

The market for internet-connected devices (often referred to as the Internet of Things, or IoT) is growing rapidly. Investment in this burgeoning space can be attractive, and according to research firm IDC, the worldwide spending on IoT could reach up to $1.4 trillion in 2021. There are unique risks associated with IoT investments, however, and potential investors should assess certain privacy and data protection issues when considering potential opportunities.

As the variety of connected products expands and IoT devices proliferate in homes and businesses, lawmakers and regulators—and cybercriminals—have taken note. IoT devices can be vulnerable to hackers or other security breaches, potentially exposing personally identifiable information (PII) collected from users. A recent survey conducted by Aruba Networks of over 3,000 companies in a variety of jurisdictions found that the vast majority of companies—84% - had experienced an IoT breach. A study recently released