Page 15 - Cyber Warnings December 2015

The Real Cost of This Year’s Hot Holiday Tech

By Chris Rouland, Bastille Founder and CTO

The holiday season is here again and hot tech is once again poised to dominate wish lists
everywhere. But unlike previous years when technology must-haves were reserved for gadget
junkies, Internet connections seem to be creeping into everything from the crockpot for mom to the
Barbie doll for your daughter. The Internet of Things and sensor technology has ushered in a new
wave of connected devices, but the question that should be asked is, are the devices actually gifts
that keep on giving...to the bad guys?

Be Wary of Wearables

Wearables, like fitness trackers and smartwatches, have seen steady adoption by consumers. This
holiday season, fueled by the Apple Watch, consumer wearables might finally make the
mainstream. In fact, IDC predicts that the wearable market will grow by 223% this year alone.
Driven by shrinking prices and aging Millennials, 1 in 6 U.S. adults now own a wearable and that
number will only continue to rise. Another boost to the wearable market has come from the
Enterprise. Large organizations looking to encourage employee health and perhaps save a few
bucks on insurance are now offering fitness trackers as part of their wellness programs. When was
the last time you read the Apple update policy agreement? Consumers are largely unaware and
unconcerned about the privacy policies that come with applications, products, and online activity.
However, as we move towards integrating the Internet of Things into our lives, it’s more important
than ever to consider what we’re sharing and how it will be used.

Quite simply – consumers are becoming the product.

While we may understand that giving up our email address is going to mean that we get more
coupons and notifications from manufacturers, the average consumer doesn’t understand that
agreeing to the terms and conditions of most Internet of Things devices means that they open
themselves up to a lot more than increased SPAM. Wearables, for instance, keep track of your daily
activity. From location to steps taken to vital signs, these devices track the most mundane facets of
your life. This may seem innocent enough until you begin to get offers from diet companies because
your activity has decreased or coupons for new shoes because you have gone over one million
steps. Perhaps even riskier is that many wearables have agreements in place with insurance
companies as many large organizations are now using wearables as part of their wellness
programs. What if your fitness band manufacturer decides to share this information and your
premiums are affected?

This type of thing is usually spelled out in the product’s privacy policy, but it can be fairly broad
based and always favors the manufacturer. Generally speaking, they will reserve the right to share
data in aggregate, for any reason that improves the product or service. This protects personally
identifiable information – or should – but again, it’s imperative to understand what data you’re giving

15 Cyber Warnings E-Magazine – December 2015 Edition
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