By James Lawrence - News - 3 weeks ago

Blockchain Identified as Key in Fraud Detection and Prevention for IoT

As reported in a Business Wire press release, published 21 November, the global fraud detection and prevention market, which blockchain will be key to, is expect profit from a compound annual growth rate (CAGR) of more than 20 percent over the next five years. This is according to the market research by Technavio, who propose the growing IoT market will require greater levels of security investment.

Technavio a market research company with global coverage that covers industries from aerospace and defense all the way through to media and entertainment, their report library consists of more than 10,000 reports, covering 800 technologies, spanning across 50 countries.

Technavio predict the internet of things (IoT) market to grow rapidly over the next five years,

“The global IoT market is expected to grow from 155.78 million units in 2018 to 1,251.02 million units in 2023. Due to the growing demand for IoT, IoT providers are under intense pressure to bring IoT products into the market.”

IoT is a network of physical objects that are all interconnected via the internet with software, actuators, and sensors inbuilt, all of these objects are able to connect and exchange data. Despite the huge potentials of this burgeoning field, Technavio research suggests some IoT providers are not investing in the backend systems that are required to support IoT securely.

The rapid rise of the tech has left gaping holes in the fabric of a secure network, even in our unconnected world as compared to in five years time, there are already hundreds of stories of vulnerabilities in IoT objects. Just Googling, ‘IoT hacks’ results in articles of cardiac devices in hospitals that have been hacked and baby monitor hacks among many, many more.

Technavio identifies that IoT developers need to be able to defend against threats of unauthorized access to devices, external hackers, and denial of service (DoS) attacks caused by malicious hackers. This is why the research firm believes the fraud detection and prevention (FDP) market will only grow from here on out.

Blockchain has been recognized by Technavio as a valuable tool to FDP, as “the blockchain system enables security and transparency in the transactions of all the parties (stakeholders) involved”. Blockchains decentralized nature is non-conducive to hacking, as information is transferred via many nodes, instead of a ‘honeypot’ of information.