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There are days when you come back from work, tired, and just want something to lift your mood. For that boost of energy, you just say, “Alexa, turn on the party mode,” and your virtual assistant immediately understands the command and changes the room lighting and puts on some energetic music. 

Even a decade ago, living like this was unimaginable. But today, Internet of Things (IoT) has amalgamated physical and digital lives. This interconnected ecosystem spans an array of devices–from smart home appliances and wearables to industrial sensors, autonomous vehicles and connected cars–delivering convenience and enhancing productivity. IoT is an expansive term and, as technology evolves further, it will only get broader in its scope as every technological device can interact with the internet and devices in one way or the other.   

IoT comprises integrating internet connectivity into a network of interconnected computing devices, both mechanical and digital. Each entity within this network possesses a distinct identifier and the capability to transmit data across a network. Nevertheless, providing devices with internet connectivity exposes them to significant vulnerabilities if adequate protection measures are not implemented.

Growth of IoT

The rapid growth of IoT deployment is evident, with the market projected to surge from $1.17 trillion in 2024 to $2.37 trillion by 2029, according to Mordor Intelligence. While Asia Pacific leads in growth, North America retains its position as the largest market. 

As the IoT landscape expands, heightened attention is required towards data privacy and network security, necessitating scrutiny of data collection and exchange practices. 

Cybersecurity Ventures, a researcher and publisher covering the global cyber economy, estimates cybercrime costs to reach $10.5 trillion by 2025. And it is not just the large companies that are being targeted by cybercriminals. Even a typical mid-market company can be attacked 56,000 to 86,000 times in a year.  

More often than not, cybercriminals are targeting customer databases as a huge market exists for the personal and financial details of individuals. One of the most common ways of conducting a cyberattack is technological manipulation wherein data on vulnerable systems and cloud networks are hacked. Breaching IoT devices is one of the techniques cybercriminals use. Even though companies protect servers and terminals using the latest technology, hackers leverage poorly protected IoT devices like security cameras. 

Data protection techniques businesses must adopt

With an increase in cybercrime, it is necessary to protect data using the latest security technology and implement layers of security.  

Here are some ways you can protect consumer data: 

Adding layers of authentication

No matter how strong a password is, hackers can still breach the accounts. How is it possible? The reality is, a password, regardless of its strength, constitutes just one layer of defence. True data protection entails multiple layers.

When customers undertake actions that could impact their accounts—such as logging in or updating personal information—an additional layer of authentication safeguards them. This serves as an extra step to validate their identity. Two-factor authentication (2FA) or mobile identity—or both—can accomplish this. 

When employing 2FA for data protection, it’s crucial to implement robust multi-factor authentication and utilise all available 2FA channels, including SMS, WhatsApp, rich communication services (RCS), voice, email, and in-app push notifications. 

With RCS, for instance, businesses can receive delivery and read receipts, allowing them to confirm whether the OTP has been successfully delivered and viewed by the customer. This adds an extra layer of reliability to OTP delivery. It also supports dynamic content generation, enabling the creation of dynamic OTPs that change with each message. 

Alternatively, push notifications offer a convenient method for delivering one-time PINs, allowing users to confirm their identity and authorise transactions swiftly. Additionally, messages containing YES and NO buttons can streamline the authorisation process further.

And now with the increase in the usage of IoT devices–home gadgets, smartphones, and other wearables–businesses must ensure that all connected devices are securely authenticated. 

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With an increase in cybercrime, it is necessary to protect data using the latest security technology and implement layers of security.

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Deploying secure methods of communication

Given that customers prefer diverse communication channels, it’s vital for your business to maintain a presence across all platforms. Nonetheless, certain channels offer greater security than others, making them more suitable for sharing sensitive information. 

WhatsApp Business presents an opportunity for companies to engage with customers via one of the world’s most popular chat applications. In addition to facilitating tailored communications, it empowers brands to dispatch automated messages and access crucial messaging analytics. It also stands out for data protection with its end-to-end encryption for all WhatsApp messages. This encryption ensures that any communication remains confidential, readable solely by the relevant parties. Even WhatsApp cannot access the messages transmitted through this channel. 

Providing real-time alerts

Providing customers with real-time alerts regarding unusual account activity enables fraud prevention with quick action. For instance, if an individual tries to withdraw a significant amount of money using their account in a foreign country, the customer can quickly approve or reject the transaction based on their activity.

If your business has its own application, leveraging mobile app messaging is an effective method to send real-time alerts. Through push notifications, customers receive instant alerts. When utilising push notifications, it’s beneficial to establish SMS as a failover option. 

Raising awareness for data security

There’s no sector untouched by the benefits of IoT. Let’s take the example of the banking industry which is at the forefront of technological innovation. The chatbots, also part of the IoT ecosystem, have revolutionised communication between users and banks, offering seamless and convenient interactions. 

While chatbots enhance accessibility, they also introduce new vulnerabilities for customer data breaches. While banks can deploy two-factor authentication and real-time alerts, customer awareness is also essential for customer data protection. Before engaging in conversation, it’s crucial to familiarise the consumer with the chat app and how they can secure their data and personal information. 

Focus on data and security is imperative

As the boundaries between our digital and physical lives continue to blur, maintaining a steadfast focus on data and security is very important. Merely fortifying customer data protection systems is insufficient; it is imperative to engage customers actively in understanding how they can safeguard their own data throughout this evolving landscape.

The author is Business Lead – BFSI, India, Infobip, an omni-channel communications platform.