Well, thank you again for copy your call Analyst for inviting me to speak today. The presentation that I'll be doing today is about the implications of IOT security and data privacy on connected devices. And through the presentation, I'll just call it a T or internet of things, devices and explain what that is. All right. So what are internet of things? Devices, devices. So internet of things, devices are items that have connectivity to the internet. So it's kind of a network of physical devices or objects that have sensors that have software. They can transmit information either to, or from a device and being able to access these items over the internet is very helpful.
So I wanna talk a little bit about internet of things, the landscape and emerging risks. So in 2020, there are about 31 billion internet of things. Devices out in the wild. They estimate by 2025, there'll be about 75 billion devices. The annual spending on IOT security measures will increase to 631 million by 2021. Here's a staggering statistic. The data created over the next three years would be more than the data created in the past 30 years. So the type of data that's being collected is very different from the data that was collected in the past. And these internet of things, devices will help with this data creation exponentially. So the devices are creating data. They're collecting data that probably never was collected or created before. So like an example of this, let's say that you have a smart thermostat, so smart thermostat in your house, which regulates the temperature in your house.
It may be a very helpful tool for you. You can, when you're away from home, you can log into an app and it allows you to control the, the temperature or see the temperature in your house and control those settings. So that's a very helpful, great way. And it's probably one of the most familiar ways that people are using IOT devices. But now this data about the temperature changes and how you interact with the device and possibly where you are located when you're remotely controlling this device, that information is being created in the world and being collected and stored in some way, IOT devices are typically attacked within five minutes of connecting to the internet. So these devices can be very vulnerable. Device makers want to make it as simple as possible for people to set up these devices. But a lot of times, depending on who's setting them up, they may not be set up in the most secure fashion. And we could talk about that a little bit later. Some ways people can do it in a way that's more secure and then cyber crime costs companies worldwide and estimated of 10.5 trillion annually, and will buy 20, 25.
So how are IOT devices used? I mentioned things like smart thermostats, but, and most people who have any commercial, I'm sorry, residential use of ILT devices are familiar with things like maybe a ring doorbell that has a video, a sound on it, a maybe a vacuum cleaner that you can remote control in some way. So all of those things have internet connectivity. So that would be part of, kind of the smart home category of I IOT devices. IOT devices are also used in cities, smart cities for things like traffic, light management, video management, for example, instead of just having a camera, that's just recording, you know, video. Now these cameras can be interconnected and they can speak and communicate with each other. Also being able to give information on a more regular and rapid pace is something that is very helpful. We see autonomous vehicles.
So self-driving cars that are being developed, retail, where let's say you're in, in a store. And instead of you having to check out yourself, it's kind of following your cell phone around and letting you do things, you know, either without touch or do them remotely farming wearables, wearables are part of the internet of things, revolution smart grids. So that goes along with smart cities, industrial internet telehealth. So telehealth is a big one. So people who have medical devices, those things may be controlled remotely as well. Things like, you know, pacemaker or maybe diabetic machines or breathing machines. Those things can have internet connectivity to be able to not only report information about what's happening with the patient, but also having doctors and medical professionals be able to adjust, make adjustments and changes to those devices, remotely smart chain management, smart supply chain management. So we're seeing a huge uptick in smart devices, or it devices in the manufacturing section, people are calling it it a smart manufacturing. So this may be vehicles that are, you know, going around plants, doing different tasks. It may be some way to kind of speed up information gathering on what's happening within supply chain to, you know, make manufacturing more efficient. So these are all, all the ways we're seeing Smartt connected device technology be used.
Okay. So here are some of the benefits of I T devices. So the real benefit that I see in IOT devices is more this real time data capture. So if, if individuals or organizations are using IOT devices, they will be able to have data more quickly so that they can make decisions more quickly. Also the ability to communicate with other IOT technologies is, is a great thing. So in the example of maybe a smart manufacturing situation, if they have multiple devices, let's say they may have kind of a robot or autonomous vehicle that can talk to other equipment so that it's not bumping into one another and things like that. So all those things can be achieved with IOT technologies, smart automation, meaning being the ability to be able to automate things in, in real time, by, you know, using software or remote control of devices, the convenience.
So many people who bring on IOT devices within their home, for example do so because it's easier, it's more convenient in some way. So being able to change a light bulb using your, your phone, your smartphone, or being able to look at who's at your door, even when you're out of town, those are things that are very helpful, also cost savings. So an example in smart manufacturing is let's say there's an autonomous vehicle or autonomous robot that's connect to the internet and is doing a task that may be too costly to have a human do, or maybe even for a safety reason. So maybe it's safer to have, have a machine do this task than a human. That may be something that, that people look at in terms oft devices.
All right. So what data cant devices collect? So obviously IOT devices, they have hardware and software. So the hardware and software information can be collected. It can be updated. So just think about your phone. If you have, for example, you have iPhone or Android, you can do kinda remote updates from those devices. So that's, that's a really big thing with I IOT devices. That's very helpful. The I T devices can collect almost any type of data. So that includes motion, the presence of other devices, conditions in the area, whether that's environmental conditions outside or, or indoors the surrounding heat light. Also, let's say, if you had people walking around your house, smart devices can, can detect, you know, those people possibly even, you know, by their phone signature personally, identifiable information can be collected like lo you know, location, identity, the tracking of people within range of those devices. So IOT, cyber, and privacy risks.
So some of the, some of the cyber and privacy risks that come with using IOT devices have to do with compromise. If a device is not properly secured, as I said, manufacturers who create these devices, make them very easy for people to, to get them working and moving and operating online, but is uncommon upon a user to be able to set the device in such a way that is as secure as it can be. So it, in terms of data capture and remote control, these are situations where the devices are continually collecting information. They're possibly sending information to remote locations and also devices can be remote control. So an example of this, let's say someone had a car, maybe not only just a autonomous vehicle, but even a car that has sensors or information that can be remotely controlled. Being able to have maybe a bad actor, like take over control over your car through an app.
That's something that we're seeing happening as a result of devices, not being properly secured, personally, identifiable information may be recorded and retained. So information who you are, kind of your mode of living, how you kind of move through spaces. Those are the types of information that can be collected by IOT devices. It gets even more personal when you're thinking about things related to health. So, you know, your heart rate, how fast you walk, you know, where you walk, where the, the, the locations that you go during your day, those things that maybe 30 years ago were never recorded in the same way are now being sort of recorded in tracked using IOT devices, third party data, sharing risks without informed consent or consent at all. So these as these devices can collect data about individuals and, and environments. This data can also be transmitted to third parties.
So a lot of times when you start using a T device, there may be certain consents that are requested of you so that the data can be shared in some way. Sometimes you get notices where they say, well, can we share your data anonymously or not for kinda research purposes, but also some devices, depending on how it's used and how, you know, what the laws are in certain jurisdictions. This data can be shared with third parties. So not all countries have laws about the consent portion of how this happens. So some, some countries like the us we're, we are very much a notice country where giving notice may be sufficient that you're gonna share your data with the third party, but we're seeing that change more with a lot of state regulations in the us that are trying to push more consent, especially as it relates to data that's being collected, either the person does not know is being collected or is not sure how, what data is collected and how it's being used.
So IOT devices may have multiple features that are subject to different laws and different jurisdictions. So the, the multimodal facet of IOT devices makes it much more complicated in terms of data privacy regulations. So, for example, let's say you have a smart doorbell and it records video. It records audio, it may record, you know, other things about individuals or surroundings. There are different laws and different jurisdictions about video, about audio, about privacy in general, especially if you're using devices in a place that is capturing information about people who may not have consented. So let's say, say your, you have a ring doorbell that is aimed in a way that it can look over the fence of your neighbor. That may be something that will get people in trouble because you know of the privacy right of the individual. So this, this is different from location.
Location is different from different jurisdictions. We're seeing obviously in the, in the, in Europe, the GDPR is very strong in terms of the human element, in terms of privacy rights, where in the us, we have very consumer focused laws related to privacy. So, so in certain circumstances, this type of data, data sharing or multimodal data capture may be okay, but I think it's incumbent upon the user to know what those, those boundaries are, so that they can be sure to stay within the law and the regulation. So minimizing the risk associated with IOT devices. So there's some basic things that people can do to minimize their risk when using IOT devices, if there are default passwords on devices or admin passwords, those things should be changed, understanding the benefits of the drawbacks. So it can't just be, you know, this devices, all these great things, you also have to look at, you know, what are the downsides?
What are the drawbacks? So you have to weigh that for yourself. And a lot of times people think, okay, the, the benefit outweighs the risk or the drawbacks. So make sure you understand what those are, keep devices updated. This is really critical. So the benefit of having these devices be connected to the internet is that as opposed to analog devices, where maybe you have to take a action on your own to update it, or, you know, some older device that weren't connected, that couldn't be updated that way, you may have to eventually buy a new device just to get the new update. So internet of things, devices have the capability to do updates remotely and do them, you know, automatically. So then it gets kind of more life or longer lifespan to your device. So it's important that, that if you have these types of devices that you follow the manufacturer's instructions, in terms of being able to keep up with updates, whether it's hardware or software, some of these things also have recalls almost like automobiles.
So be able to look out for that as well, very important and consider disconnecting internet of things, devices, or connected devices when I'm not in use. So, especially in situations where a consumer may have devices that don't have the most, the strongest passwords, or they aren't as secure. If the device is not being actively used, maybe a great idea to not connect to the internet. All right. So my takeaways are you have to balance the benefits and risk of using IOT technologies, definitely implement security. If you can, on these devices, make sure that you are aware of any data collection that may run a file of kind of jurisdictional laws where you live or where you work and consider disconnecting devices from the internet when they are not being used. So that's it.
