Futurex’s Data Security Predictions for 2016
2016 is planned to be a big year, and it’s certain that technology will continue to enable significant advancements in the way we do business. However the ways it will be implemented and the impact it will have is more difficult to predict. And so, with our crystal ball in hand, we are ready to make our predictions of what will happen in the industry this year. To predict what these trends will be, we have polled the experts, parsed the data, and paid particular attention to the how cryptographic technology will reach the larger community. Here it is, take it or leave it: our humble take on the year ahead.
Security for the Internet of Things:
We recently dedicated a blog post to the Internet of Things. This 21st century phenomenon describes the growing number of items we interact with on a daily basis which incorporate personal data as part of their core functionality. Anything that connects to the internet… car, fitness trackers, smart watches, glasses, toys… all are subject to a major data breach. Wearable technology and the sale of ‘smart’ items is already a multi-billion dollar industry. Juniper Research predicts that this sector, specifically smart wearables, will grow exponentially, generating $53.2 billion by 2019. This industry needs to be protected, and 2016 will be a big year for it. The information these items absorb affects individual consumer privacy and even national security. A breach could expose an individual’s health information, GPS-tracked travel patterns, and even personal interactions between families and children. Organizations who traditionally did not have to involve themselves with this level of security will be doing so in 2016.
Small Businesses to Tackle Big Security:
In 2015, credit card issuers put into effect their plan to address the billions of dollars in credit card losses occurring in the United States each year. Beginning October 1st, 2015 the liability for card present fraud shifted to merchants if they are not using EMV-compatible point of sale terminals. Card issuers Visa, MasterCard, American Express, and Discover, who are the drivers of this transition, are pushing for a more secure transaction process. Although EMV card issuance and processing technology has been implemented around the world for many years, 2015 was the United States’ first major roll-out of this technology. According to documentation from the Congressional Research Service published November 2015, only 25% - 44% of retailers were adequately prepared for the fraud liability shift, with the majority of those being large retailers. Those numbers reflect a small portion of the population. The liability shift is a strong incentive for retailers to invest in the new technology. The small percentage of EMV compliant retailers will increase in 2016 as more and more businesses join the trend to protect both themselves and their customer’s from data breaches and expensive legal ramifications.
Multi-layered Authentication Across Devices:
Multi-layered authentication can incorporate three things: what you know, what you have, or what you are. Knowing a password, having a secure token, or biological characteristics tell a computer that a user is who they say they are. Security measures for consumer products are increasing. Phones operate with fingerprint recognition and the majority of banks require both password and token to change or access information from an unknown network. Multi-layered authentication makes private information less easily compromised, especially biometric authentication, which is much more difficult to fake. 2016 will combine these measures of authentication into a more layered defense for businesses, organizations, and their data.
Cloud Data Centers and Cryptographic Solutions:
For organizations small and large alike, cloud technology provides the opportunity to realistically, efficiently, and effectively protect company and consumer data. Data centers hosted in the cloud makes advanced data security available and accessible to smaller organizations who do not have the time or resources to host their own data centers. Cloud computing lowers maintenance costs, adds redundancy, and, most importantly for growing businesses, enables scalability at an unprecedented rate. With all of these benefits, 2016 will see a rise in small business cloud data storage and security solutions, specifically in the crypto industry.
Sensitive information is out there. To address this, cryptographic technology can be applied to an organization’s cloud computing system. Key management, secure storage, object signing, general-purpose cryptographic processing, and more can all be done in the cloud. The cloud makes this technology accessible. In 2016, expect to see more organizations utilizing the cloud to employ cryptographic measures in business environments.
And there it is! Our predictions for 2016. A lot can change in a year—new technology and new trends will emerge. However, Futurex is certain whatever happens, we will remain at the forefront of the cryptographic conversation, providing technology and solutions for our customers.