The Internet of Things Explained
Imagine if all the devices in your life—such as your smartphone, your smartwatch, and your home appliances—connected to the internet and talked to each other. Can you picture your front door automatically locking itself as you leave the house? What seemed like futuristic ideas a decade or two ago are now a reality. This article will explain the Internet of Things (IoT), how it works, and discuss various use cases as well as the risks and concerns that must be addressed to ensure safe and efficient use of this technology.
The basics of IoT
The Internet of Things (IoT) refers to the vast network of physical objects equipped with sensors, software, and connectivity to exchange data with other devices and systems over the internet. These objects include smart devices and can be anything from wearable technology to home appliances. They each use unique identifiers (so they can be distinguished from one another on the network) to connect to the internet and exchange the data they collect without human intervention. One of the earliest examples of an IoT device dates back to the 1980s, when students at Carnegie Mellon University modified a Coca-Cola vending machine by installing a processing board to remotely monitor its inventory and the temperature of newly loaded drinks. Today, there are many types of IoT devices, and more emerge every day.
How does it work?
The basic idea is that each device is equipped with sensors, controllers, and other technologies that collect data from its environment, such as temperature, motion, light, or other specific metrics based on what the device is designed to do. Once collected, the data can be either processed locally on the device or sent to the cloud to be analyzed. It’s then shared with the user or other connected devices through technologies like Bluetooth, Wi-Fi, cellular networks, or radio frequency identification (RFID)1, helping users make decisions and perform tasks more efficiently. However, it is important to note that this data may also be shared with the parent organization2 that sells the device. This is often done to understand user behaviour, predict sales, and increase the efficiency of device operations. While some of this data sharing can be beneficial to the user, it also raises privacy concerns, as personal data is being shared more widely.
Using a smart home3 as an example, let’s have a closer look at how IoT works.
- Connecting devices: In your smart home, you have a smart thermostat equipped with a sensor that connects to your home's Wi-Fi just like your phone or laptop would.
- Collecting data: Your smart thermostat is constantly collecting data from its environment, monitoring temperatures throughout your home and in some cases which rooms are occupied using motion sensors.
- Analyzing data: The device may then analyze this data to make decisions. In the case of your thermostat, it might analyze the temperature data alongside your preferred settings (like lowering the temperature at night) to optimize heating and cooling.
- Taking action based on analysis: After analyzing the data, your thermostat adjusts the settings automatically to maintain comfort while saving energy. For example, it might lower the heat in your living room when no one is there, based on the data it collected and analyzed.
- Sharing data: The data isn't just kept for individual actions. It might be shared with other devices and systems to improve functionality. For example, your thermostat might share its data with your smart lights, so they dim or turn off when the thermostat senses the room is empty for both comfort and energy efficiency.One thing to be aware of is that the data your thermostat collects can often be shared with the parent organization. This helps the company understand user behaviour, predict sales, improve device operations, and enhance customer support by diagnosing issues remotely. However, this means that personal data is being shared beyond just your household devices, raising potential privacy concerns.
This network of connected devices not only makes individual tasks easier but also allows different devices to work together, creating a smarter, more responsive environment around you. Later on in this article, we will discuss the risks and concerns associated with this data sharing, and how it impacts your privacy.
Now that we understand the mechanism behind how it works, let's explore how IoT is being used in various sectors by highlighting specific use cases.
Real-life examples of IoT applications
Retail
Retail groceries are increasingly leveraging IoT technology to streamline operations. For example, Aisle 24 is a self-service convenience store that operates 24/7 without any staff on site. To access the store, customers must download an app, create a profile, take a picture of themselves, and link their credit card information. Inside the store, shoppers select their items and proceed to a self-checkout kiosk to complete their purchase. The store uses an advanced security system to monitor activities and prevent theft. If any issues arise, the store can charge the customer's credit card and ban their account.
Smart farming and agriculture
Potato farmers in the Maritimes are using smart farming to improve their yields. Advanced tools such as drones with specialized cameras, GPS systems, and sensors are being used to gather detailed information about soil and crop conditions. This data allows them to precisely adjust where to apply agricultural inputs and how much, enhancing crop growth, cutting costs, and protecting the environment.
Offices
In modern offices, IoT devices are often integrated into everyday operations, sometimes going unnoticed by employees. Many of these IoT functionalities operate subtly in the background, such as when you enter a conference room and the lights automatically turn on, followed by the camera and screen waking up when they detect voices.
Government of Canada
Parks Canada uses technology like wildlife webcams and remote cameras to monitor and collect data on wildlife populations across various national parks. These cameras, strategically placed from the northern Yukon to Quebec’s Saguenay—St. Lawrence Marine Park, capture valuable insights into animal behaviour without disturbing them. For example, in places like Mount Revelstoke and Glacier national parks, motion-triggered cameras offer a peek into the daily lives of wild animals, helping researchers understand how they behave. Additionally, motion-sensitive cameras provide important data on how climate change affects various species.
Transportation
iBus is a technology used to provide real-time updates on bus arrivals and network conditions for Montreal's public transit. Using GPS and odometer data, iBus tracks buses and sends this information to a central operations centre. This allows for improved route management and flexibility in responding to on-road incidents. Bus drivers receive real-time maps and updates, while passengers are informed about any changes via onboard announcements, digital displays at major bus stops, and multiple online platforms. In addition, the city has upgraded some intersections by adding devices that extend green lights when buses approach, with the goal of improving service efficiency.
Health
Today, some cardiac pacemakers now come with Bluetooth capabilities that transmit real-time heart data to healthcare providers using a dedicated transmitter. These devices collect various data, such as real-time electrocardiogram (ECG) waveform, heart rate, and device performance metrics. Custom algorithms detect any irregularities and notify specialized teams so they can review and update patient records accordingly. This remote monitoring reduces the need for frequent office visits and allows for any issues to be dealt with early on for better care.
We've only just scratched the surface of real-life examples of IoT. There are many more examples out there, and as the technology evolves, so will usage.
Risks and concerns
While IoT technologies can support or improve automation, data management, efficiency , decision-making, cost savings, safety, and real-time monitoring and control, they also introduce significant risks and concerns when it comes to security, privacy, and data management.
One of the primary concerns for IoT is the vulnerability of IoT devices to cyber attacks. These devices often lack robust security measures, making them easy targets for hackers, who can exploit these weaknesses to access sensitive data and potentially cause widespread operational disruptions.
Additionally, IoT devices often collect vast amounts of data through their sensors, raising privacy concerns. Without clear policies and transparency about what data is collected and how it is used, there is a risk that personal and sensitive information could be exposed or misused.
The threat of cyber incidents extends beyond information breaches; there are risks to physical safety as well. Unauthorized access or remote takeover of an IoT device like a medical device (for example, a smart insulin pump or pacemaker) or vehicle systems could lead to severe physical harm or operational disruption.
Not all IoT devices are created equal, and the context of use matters: they range from cheap commercial devices that can be connected to home Wi-Fi with minimal to no security, to surveillance devices, to security-tested and more sophisticated implementations used for data collection and decision-making in manufacturing, agriculture, and other fields.
Regulation and governance
The US, EU, and UK have implemented specific legislation targeting IoT security and data privacy, and states like California have introduced their own IoT-specific requirements. For example, the US enacted the IoT Cybersecurity Improvement Act to establish minimum security standards for IoT devices purchased by federal agencies in order to prevent cyber security vulnerabilities in devices that can be exploited by hackers, thereby reducing the risk of attacks that could compromise federal information systems. Similarly, the EU and UK have advanced regulations such as the EU Cybersecurity Act and the UK's Product Security and Telecommunication Infrastructure Act to enforce security practices among IoT device manufacturers.
In Canada, some IoT, security, and privacy considerations are included in frameworks, Government of Canada policies, and legislation such as the Personal Information Protection and Electronic Documents Act, Canada's federal privacy law. According to the Office of the Privacy Commissioner of Canada, this act imposes general obligations on IoT manufacturers regarding the handling of personal information. It covers key aspects such as accountability, privacy impact assessments, consent, information handling, and security safeguards.
Additionally, manufacturers are encouraged to adopt best practices beyond the legal requirements to enhance transparency and trust, such as regularly informing users when data is being collected and offering clear options for users to control their data. This guidance ensures that manufacturers not only meet legal obligations but also build trust with consumers by safeguarding their privacy and security.
Tips to mitigate risks
As the number of IoT devices continues to grow, understanding how to securely use and manage the IoT devices in your home and organization is crucial. Here are some practical tips that can be broadly applied to safeguard against potential vulnerabilities and cyber threats:
At home
- Do your due diligence: When you choose cheaper IoT devices, you might end up compromising on security. Before you purchase and install them, take the time to research any potential security concerns or issues. This proactive approach will help you make a well-informed decision.
- Evaluate the need for connectivity: Consider if devices really need to be connected to the internet. For example, ask yourself if everyday items like your coffee maker, toaster, or fridge truly require internet access. Having fewer connected devices can help minimize potential security risks.
- Use strong password practices: Change any default device passwords. This simple step can prevent unauthorized access. Ensure that all devices use strong, unique passwords and passphrases. Avoid using the same password for different devices or accounts to reduce the risk of multiple breaches from one hacked password.
- Perform regular updates: Make sure to regularly update your IoT device's software and firmware, and if available turn on automatic updates.
- Isolate networks: For added security, connect IoT devices to their own network, separate from the main networks that handle sensitive data. If your home Wi-Fi network has a "guest" segment, connect your IoT devices to it. Isolating IoT devices on a dedicated network helps protect sensitive personal information and data from potential breaches and minimizes exposure to the vulnerabilities of IoT devices.
- Ensure physical device security: Make sure that your IoT devices are physically secured and kept out of reach of unauthorized individuals to prevent tampering or unauthorized access.
For more detailed advice, check out Smart device cyber security: An introduction.
For IT security practitioners
While implementing general security measures is crucial, it's important to remember that each Government of Canada (GC) organization likely has its own established policies and practices. These policies are likely built upon the existing GC-wide security, information management, and information technology frameworks. For the most effective approach to IoT security, consult and follow your organization's specific policies.
The bottom line
Staying informed, vigilant, and responsive to the evolving landscape of IoT technology will help ensure that you can enjoy the advantages of these devices while managing risks.
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