Despite an increased focus on Internet of Things (IoT) security, only 48% of companies can detect if any of their IoT devices suffer a breach, a new study by digital security giant Gemalto shows.

Nearly 90% of the companies surveyed believe that it is a “big consideration” for customers, with spending on security increasing from 11% of IoT budgets in 2017 to 13% in 2018, and nearly three times as many companies, at 14%, now see IoT security as an ethical responsibility, compared with only 4% a year ago.

Despite this, protecting an increasing amount of data is proving to be a challenge, with only three in five of those using IoT and spending on IoT security admitting they encrypt all of their data, says Gemalto data protection CTO Jason Hart.

“With the number of connected devices set to top 20-billion by 2023, businesses must act quickly to ensure their IoT breach detection is as effective as possible.

“Given the increase in the number of IoT-enabled devices, it is extremely worrying to see that businesses still cannot detect if they have been breached,” he adds.

The study, which surveyed 950 information technology and business decision-makers globally, reveals that 62% of consumers believe security needs to improve.

“When it comes to the biggest areas of concern, 54% fear a lack of privacy because of connected devices, followed closely by unauthorised parties like hackers controlling devices (51%) and lack of control over personal data (50%),” Hart points out.

Businesses are now calling for government intervention in view of the challenges faced in securing connected devices and IoT services, with 79% asking for more robust guidelines on IoT security and 59% seeking clarification on where the responsibility for protecting IoT lies.

“Despite the fact that many governments have already enacted or announced the introduction of regulations specific to IoT security, 95% of businesses believe there should be uniform regulations in place, a finding that is echoed by consumers: 95% expect IoT devices to be governed by security regulations,” he says.

This is particularly highlighted for data privacy, with 38% of businesses saying government intervention is critical, and 34% stating that the collection of large amounts of data is critical.

“With no consistent regulation guiding the industry, it is no surprise the threats – and, in turn, vulnerability of businesses – are increasing. This will only continue unless governments step in now to help industry avoid losing control.”

However, Gemalto’s study indicates that blockchain technology can help secure IoT data, services and devices.

While the industry awaits regulation, Gemalto is seeking ways to address the issues itself, with blockchain emerging as a potential solution in the forefront.

Some 23% of respondents believe blockchain technology would be an ideal solution to use for securing IoT devices and 91% of organisations not currently using blockchain are likely to consider it.

The adoption of blockchain has doubled from 9% to 19% in the last 12 months, the survey shows.

“As blockchain technology finds its place in securing IoT devices, businesses continue to employ other methods to protect themselves against cybercriminals. The majority, at 71%, encrypt their data, while password protection, at 66%, and two-factor authentication, at 38%, remain prominent,” Hart says.