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10 | 3RD - 9TH JUNE 2016 | UTILITY WEEK Insight Get connected, stay secure article continued investing in technology if it reduces energy and utility bills." In short, say IoT proponents, the Internet of Things heralds a bright new future – a bright new future for utilities, and utilities' customers. But it's not a future without the odd dark cloud, and one cloud in particular is causing concern. Namely, security. The logic isn't difficult to see. In the chain of networks and providers stretching from power generators through to DNOs and energy suppliers, and onwards to end cus- tomers in businesses and households, the result is that a whole swathe of equipment becomes connected to the internet. The same Internet, of course, that each of us as ordi- nary individuals knows all too well is popu- lated by viruses, malware, and hackers. "The danger doesn't lie in connecting devices: utilities have been doing that for years, using analogue and serial-based net- work technologies such as Fieldbus," says Dave Palmer, director of technology at cyber security specialists Darktrace. "Instead, the danger lies in how that connectivity is achieved, using standard open mainstream soware and hardware. The benefit is a greater ease of interconnectivity with other systems – but the downside is greater vulner- ability to threats that exploit that same stand- ard mainstream soware and hardware." Martyn Ruks, technical director at cyber security advisors MWR InfoSecurity, agrees, pointing to the hacking of Ukraine's Prykarpattyaoblenergo control centre last December – creating a power outage affect- ing 225,000 customers – as evidence of that greater vulnerability. "The very act of opening up utilities' networks to get the benefits of Internet- enhanced business processes and capabili- ties has the effect of exposing more points of access to threats," he observes. "And what the lesson from Ukraine says is that those threats are very real, and very genuine." And clearly, the specific dangers asso- ciated with those threats are of varying degrees of severity. The ability to take down a grid, for instance, raises issues of critical national infrastructure, of concern to both governments and utilities alike. While the United States' Department of Homeland Security report on the incident has stopped short of attribution, a number of American cyber intelligence and security specialists have linked the attack to a specific group of Russian hackers. That said, while such attacks are a possi- bility to be guarded against, they're not the only threat – or even the most pressing one. "Hostile nation-state 'doomsday' attacks aren't the major risk facing IoT deployments," argues Darktrace's Palmer. "Instead, it's those same viruses, malware and ransom-based encryption attacks that affect everyday computing in businesses and domestic environments." Data protection is also an issue, with the risk of hackers exploiting IoT device vul- nerabilities to gain access to the broader commercial systems of a utility, perhaps accessing customer data – or perhaps steal- ing data directly from IoT devices on custom- ers' premises. While the reputational damage stemming from this isn't to be taken lightly, says Kolvin Stone, partner and global co-chair of the data privacy and cyber security practice at global law firm Orrick, Herrington & Sutcliffe, Privacy matters Gas boiler manufacturer Worcester – part of the German engineering giant Bosch group – has been an early adopter of IoT technology in its products, launching an IoT-enabled remote gas boiler controller as an easy-to-use app, installed on consumers' smartphones or tablets. N ext up: an IoT-enabled boiler enhancement, developed in conjunction with British Gas, which in the event of a fault will automati- cally report problems to British Gas' maintenance team, sum- moning an engineer to service the equipment. But for consumers, IoT technology isn't a one-way bet, says Martyn Bridges, director of marketing and technical sup- port at Worcester. "As a manufacturer, we are encountering a growing number of home owners who are con- cerned about what an increas- ing array of 'smart' products could mean for the security of their data," he observes. "Smart heating controls are one such example, and there is a reluctance among some home owners to purchase of any kind of Internet connected device for their property, due to fears about this information being accessed by a third party." And such concerns are very genuine, adds Robin Scarbor- ough, partner and managing director at consumer marketing consultancy Market Gravity. "The opportunities for IoT devices are vast – but so too is the potential for security flaws and privacy lapses. Consum- ers are putting their trust in businesses to handle their data appropriately, and they will require reassurance as to how that data with be stored, used and accessed. It's important to consider data protection, and we expect tighter regulation as well as industry collaboration to align standards and policies." And such collaboration is already underway, stresses Sven Schrecker, Intel, Chief Architect, IoT Security Systems, with the close IoT cooperation between Intel and Cisco being one such example: "Privacy and data secu- rity has to be a part of any IoT application or device. The focus has to be on building devices and applications that meet both regulatory requirements and consumer concerns. You can't have appropriate privacy without appropriate security – they are two sides of the same coin." Sponsored Report: Internet of Things Utility Week in association with