Allot Communications Ltd (NASDAQ:ALLT) said on Wednesday that consumers have low levels of confidence in the security of their Internet of Things (IoT) devices and are willing to pay extra to safeguard their connected homes.
In its latest Telco Security Trends Report, it found that there is an average of 8.4 connected devices per home, with smartphones and tablets making up the majority of that number and expanding the surface, which can be attacked by hackers.
Of the 1,261 consumers surveyed in 10 countries, only half of the respondents are aware of threats to their IoT devices and just 20% of respondents are "unequivocally satisfied with the built-in security of connected devices."
"The Allot research points to a marked improvement in consumer awareness of security risks with IoT," said Patrick Donegan, principal analyst with cyber-security analyst firm HardenStance. "The question now is who can build the most viable business models for addressing this opportunity?"
READ: Allot Communications teams up with McAfee and Telefónica to secure networks for smaller businesses
The top three consumer concerns around IoT device security issues are loss of privacy (28%), over-reliance on technology (26%), and cyberattack (22%). Some 74% of consumers report an awareness of and concern about connected devices. Some 72% of households are willing to pay a monthly fee, averaging $5.26, for security services.
Continued IoT market growth is forecast for the remainder of 2018, with Gartner analysts estimating the market value to reach $1 trillion.
The Telco Security Trends Report reveals that ISPs are positioned to benefit from this growth by leveraging their direct relationship with subscribers to deliver their own branded security services from within their own networks.
READ: Allot Communications teams up with Lifeboat Distribution to combat rampant cybersecurity threats in North America
"This report provides a closer look at the true concerns of consumers using IoT devices and reveals some stunning facts. For example, when asked from whom consumers would buy security services, 73% of respondents expressed a preference. Of these, only 22% preferred their ISP, the second brand of choice when compared with three leading security brands and a fourth 'other' brand," said Ronen Priel, vice president for product and strategy at Allot.
"ISPs have the unique opportunity to educate their subscribers directly about the benefits of network-delivered security and the limitation of end-point devices on which AV software cannot be uploaded, giving residential IoT products and services an additional boost and positioning service providers to become the consumer's security supplier of choice," he concluded.
Israel-based Allot Communications is a provider of network intelligence and security solutions for service providers worldwide.
Reporting by Rene Pastor, contactable on [email protected]