Ethical issues in Internet of things

1. ETHIC ISSUES SMART TECH
IN IOT

2. Table of Contents
Introduction.................................................................................................................................2
Topic Description.......................................................................................................................... 4
IoT Architecture........................................................................................................................ 4
Smart technology observation...................................................................................................4
Data Security and Privacy risks...................................................................................................5
Internet of Things – Privacy and Security........................................................................................ 6
Bluetooth threats...................................................................................................................... 6
RFID threats.............................................................................................................................. 6
Wi-Fi threats............................................................................................................................. 6
Perception Layer threats...........................................................................................................7
Network Layer threats............................................................................................................... 7
Application Layer threats...........................................................................................................7
Stakeholders and Analysis method ................................................................................................ 8
Stakeholders interested in/affected by IoT................................................................................. 8
Stakeholder Analysis................................................................................................................. 8
Risks.........................................................................................................................................9
Resolutions ................................................................................................................................ 10
Perception layer security solutions........................................................................................... 10
Networklayer security solutions.............................................................................................. 10
Applicationlayer security solutions.......................................................................................... 11

3. Introduction
The internetof thingshasevolvedthe waywe interactwiththe physical environment.The extension
of the technological infrastructurehasexpandedthe presence of technologywithinourlivesand
thereinliesthe ethical concerns (Covert2014).
Is itan inevitabilitythatIoTwill have animpacton our privacyand the emergence of security
concernswill consequently produce new dynamicsonhow we function, eventually becominga
commonaspectof our dailylives(Covert2014). IoT is a major privacyandsecurityconcernwhenit
comesto ethicsbecause of the possibilityfordatamining.Corporationshave alreadyimplemented
an IoT infrastructure totake advantage of itsbenefits andthe employeesof thatenvironmentmay
findthemselvesbecomingnodesonthe IoTwhere informationfromtrivial activitiessuchasfitness
monitorsandbrowsinghistorycanbe usedto create profilesfortargetedadvertising(Covert2014).
An example of afitnessmonitorisasensorthat usersuse to keeptrack of theirphysical activity,one
such service offeredbyFitbitone measurestravel distance,stairsclimbed,andsleepquality(Covert
2014). This informationmaybe usedtodetermineanticipatoryadvertisingthroughthe
measurementof behaviourandif the userhastheirphonesgeo-locationservice active,thenthey
may receive sale opportunitiesbasedontheirlocation(Covert2014).
IoT implementationbybusinessinvolves anassortmentof categoriesthatincludingassettracking,
inventorycontrol shippingandlocation,individual tracking,online andon-site management,major
data increase handling,andinventorycontrol (Cortland2012; Honeycutt2017). IoT will alsomean
more opportunitiesfordatagatheringandanalysiswhichisa majorfactor whenitcomesto IoT
adoption.Marketers andentrepreneurscanbenefitalotfrom thisbecause dataisincredibly
valuable tothem,micromarketingcanbe appliedmore extensivelyacrossmore demographicsand
potentiallysave millionsasadspendingispredictedtoreach$662.73 billionby2018 (DeMers2017;
Samson2015). This data can assistanalystsinpredictingandrecognisingpatternstotrackconsumer
behaviourwhichcanalsoinfluencethe productsandservicesofferedbybusinesses (DeMers2017).
Micro marketingis a tool that can produce macro scale resultsandis alsoa cost effectivealternative
to macro marketingforbusinessesthatdon’thave substantial budgetsformarketing;asuccessful
micromarketingstrategyinvolvedthe Shoesof Preybusinessapproaching avlogger,BlairFowler
whohad a loyal followingthatresulted ina300% increase insales (Samson2015).
There are a vast range of benefitsthatIoTcan provide businessesandeverydayconsumers,however
the pace that the technologyisevolvingandhow we interactwithitisalsoa concern because the
technological functionalityof IoThasn’tbeenclearlydefinedintermsof law. The numberof
connecteddevicesCiscoIBSGpredictsthere tobe 50 billiondevicesconnectedby2020 and if thisis
appliedtoindividualswith internetaccessthenthe numberof devicesownedperpersonsitsat6.25
(Evans2011).
The concept of dataficationisananalogyto the electrical infrastructure thatindustrialisedthe world
fromthe 1880s to the early1900s where electricitytransformedfromaspecialisedandcustom
systemtonow where ishasbecome a commoditisedutility;the correlationtoIoTisthe
transformationof connecteddevicesandsensorstoareadilyavailableservice where datais the
commodity (Lucero2016).
Thisreportseeksto analyse the subjectof Internetof Thingswithin anarrayof issuesextendingto
ethics,legality,society,culture, andbusiness/organisational dimensions.

4. Figure 1: Above isan image takenfroma white paperauthoredbyDave Evanswhichillustratesthe
numberof devicesconnectedtothe internet (Evans2011).
A more recentforecastbyHIS predictsthe IoT marketwill grow to30.7 billionby2020 (Lucero
2016).
Figure 2: Above isan image takenfromthe IHS paperthat illustratesthe predictedgrowthof
installedIoTdevices (Lucero2016).

5. Topic Description
IoT isa technologyrevolutionwheredatahasbecome a new commodityandthe infrastructure isa
pervasive elementinthe social andbusinessenvironment. The complexityof IoTposesachallenge
because a diverse range of devicesare broughttogetherthatalterthe fundamentalsof businessand
organisational processes,exacerbatesthe factthere thisisa new technological territory inwhich
manyare inexperienced(Lucero2016).Thisalso meansthere isuncertaintywhenitcomestorules
and regulationsandthe outcomesforsuccessaren’tclearanddefined;thisdifficultyindetermining
returnon investmentpresentsariskthat isobservedasa barrierto entryfor IoT projects (Lucero
2016).
IoT Architecture
The architecture of IoT consistof 3 layersandfrom the top theyare the applicationlayer,network
layer,andperceptionlayer(Zhao&Ge 2013). The propagationandgatheringof data occurs at the
perceptionlayerwherethe camera,GPS,sensorandRFID technologyoperateswithinthe physical
environment(Tank,Upadhyay&Patel 2016). The transmissionof dataand core network
establishmenttakesplace atthe networklayerwhichisalsoknownasthe transportlayer (Tank,
Upadhyay& Patel 2016). The applicationlayeriswhere the userinteractswiththe service UIand
utilisesthe functionof the device whichinvolvesthe applicationservice anddatamanagementsub
layers(Tank,Upadhyay& Patel 2016).
Figure 3: The image above isandepictionof the IoTarchitecture (Tank,Upadhyay& Patel 2016).
Smart technology observation
There have beensome smarttechinnovationsthathave implicationsforsecurityandbyextension
privacy. The drone mountedcameras providessecurityprovidersandprofessionalsthe control of a
birds-eye view butalsograntsincreasedcapabilitiesformalicioususersaswell (Bannister2016).
A testcarriedout consistingof 5 routers,DVRs,andIP camerasrunningup to date software were
connectedtothe internetandresultedinadevice beingcompromisedwithinminutesandtwo
additional deviceswith24hours (Bannister2016). Thishighlightsthe complacencyof usersand
expressesthe inherentrisksassociatedwiththisinfrastructure whenabsolutesecurityrelieson
social normsand currentstandards(publicsensors).

6. In thiscase,social normsreferto devicesownedbyotherpeople. The emergence of the smarthome
has still notblossomedwithissuessuchasusability,reliability,andinteroperabilitythathave yetto
be resolved;the objective toimprove everydaylife hasnotbeencompletelyachievedbysmart
home technology;anexampleinvolving asensordevice thatwasmeanttoautomate the lightsof
the home had itscloudservice shutdownwhichrenderedthe device inoperable andundermined
consumertrust(Bannister2016).
A demonstrationbyJasonChaikinrevealedthe fallibilityof biometricscannerswhere amouldof a
fingerprintusingplaydohfooledthe fingerprintscanner,howeverthere wasalsoaninnovation
involvingiris-authenticatedATMmachineswhichpromisestoalleviate the pressuresof password
management(Bannister2016).
Despite the positive outcomesthatIoThas produced insocietyandbusinessthere are major
concernsthat have emergedfromthe technologyrevolutionwhenitcomestoprivacyand security.
Data Security and Privacy risks
The listof possible dangersassociatedwithIoTif vulnerabilitiesaren’tidentifiedandsafeguarded
consistof theft,dangerto healthandsafety,lossof productivity,noncompliance,lossof privacy,and
damagedreputation (Lucero2016). There are also several factorsto take intoconsideration whenit
comesto securingIoTdevicessuchas unattendeddevicesexposedinapublicenvironment,
insufficientpowercapacityof low-costandremote devicestosupport traditional client-server
security solutions,inexperienceincybersecurityprotectionpoliciesandbestpractices,andthe
expandingattacksurface of a systemasthe numberof deviceswithinincreases(Lucero2016).

7. Internet of Things – Privacy and Security
Traditional defences thatworkforthe conventional workstationhave anunknownqualitywhenthey
are appliedtoIoTwhichmeansthere isno setframeworkandthisleavesthemmore susceptible to
securityandprivacythreats (Sain,Kang& Lee 2017). Thisisbecause of reducedprocessingcapability
of deviceswithinthe IoTenvironment;aren’tcompatible withestablisheddevicesthatare more
proficientintermsof computation,memory,andbandwidth (Sain,Kang&Lee 2017).
Technologiesemployedwithinthe IoTparadigminclude Bluetooth,radiofrequencyidentification
technology(RFID),and Wi-Fi (Grabovicaetal.2016). Bluetooth isashort range,low powerandcost
technologythatenablesthe establishmentof wirelesspersonalareanetworks (Grabovicaetal.
2016; Sain,Kang& Lee 2017). RFID technology enablesstorage andretrieval of information which
can be accessedremotely,andisusedforautomaticidentification (Grabovicaetal.2016; Sain,Kang
& Lee 2017). Wi-Fi providesthe capabilityof wirelesscommunicationandremote accesstothe
internetthroughradiosignals (Grabovicaetal.2016).
Bluetooth threats
 Bluejacking–a malicioususersendsanSMS underthe guise of a businesscard,if theyare
savedto contactsthis will enablethemtosendunsafe contentthatis automaticallyopened
(Grabovicaetal. 2016).
 Car Whisperer– car stereoswithBluetooth capabilityare vulnerable to audiotransmissions
fromhackers (Grabovicaet al.2016).
 Bluesnarfing–Bluetoothdeviceswithoutdatedfirmware are susceptible tohackersthatcan
expose theirflawsandgainaccesstothe storeddata (Grabovicaet al.2016).
RFID threats
 Clandestinescanning –unauthorisedscanningof RFIDtags (Grabovicaetal.2016)
 Clandestinetracking –chipID isemittedwithoutthe usersknowledgeandsoif the ID is
unique,thiscanbe usedto track the movementof the device (Grabovicaetal.2016).
 Skimmingandcloning –a tag can be duplicatedtomimicthe response of alegitimate tag
and falsifyavalidsignal (Grabovicaetal.2016).
 Cryptographicweaknesses –weakencryptionmechanismsare susceptible todecryption
fromhackers (Grabovicaet al.2016).
Wi-Fi threats
 The weaknessof the WEP encryptionmechanism –WEP has a weakalgorithmforencryption
(Grabovicaetal. 2016).
 Searchwirelesssignal attack –many wirelessnetworksthataren’tsecuredwithencryption
are prone to breachesinsecurity (Grabovicaetal.2016).
 Wirelessnetworkeavesdropping –an attackermay be able to collectinformationfroma
networkbysnoopingdatatransmissions (Grabovicaetal.2016).

8. Perception Layer threats
Equipmentusedatthislayerinclude wirelesssensornetworks(WSN),sensors andRFID,andthe
wirelesssignalsthattransmitdatafromthese devicesare vulnerableinpublicenvironmentswhere
theycan be monitoredandintercepted (Zhao&Ge 2013). Some attacks at thislayerare as follows:
 Node Capture – gatewaynodesare easilyhelplesstohackersseekingtoattack a system, this
may leadtoleaksof informationandcommunicationkeys (Zhao&Ge 2013).
 Fake nodesandMaliciousdata input – thisinvolvesthe additionof afake node toa system
that propagatesfalse code anddata whichcan leadtopowerwaste and networkdisruption
(Zhao& Ge 2013).
 Denial of service attack – is a commoninternetattackthat attemptstorendera service
unavailable (Zhao&Ge 2013).
 Replayattack – thisattack seeksto bypassauthenticationprocessesbygainingtrustthrough
the retransmissionof anetworkpackage (Zhao& Ge 2013).
Network Layer threats
Problemsintraditional infrastructureand securitypracticesapplypartlytothe networklayerinIoT
as well,despite the securitymeasure of traditional networksbeingcompatible there are still some
threatsat the networklayer(Zhao&Ge 2013). The numberof deviceswithin the IoTinfrastructure
resultincompatibilityissueswherethe linksof communicationare more reliantonthe exchanges
betweendevicesratherthanthe perspective of aperson (Zhao& Ge 2013). Heterogeneityaddsa
newdimension tosecuritywhichresultsinincreasedcomplexityandraisesissueswithin
interoperability,andnetworkcoordination;thisiscompoundedbythe factthat an increasing
numberof devicesgenerate challengesforcongestion,dosattacks,andauthentication (Zhao&Ge
2013). Anotherconcernisprivacydisclosure,wherethe advancesintechnologywithinIoTalso
enhance the sophisticationof threats,andsubsequentlyproliferating opportunitiesforsocial
engineering(Zhao&Ge 2013).
Application Layer threats
The applicationlayeriswhere the userinteractswiththe interface of the device andthe
considerationsforsecuritycanchange withindistinctenvironmentsandindustries,there iscurrently
no standardthat isuniversal acrossthese diversesettings forthe applicationlayer(Zhao&Ge 2013).
A summaryof the securityproblemscanbe seenbelow:
 Data access permissions,Identityauthentication - the large numberof usersrequire a
considerationof authenticationmethods (Zhao&Ge 2013).
 Data protectionandrecovery – incomplete orinadequate dataprotectionanddata
processingprocessescanleadtodata lossandpresentsa problemwhenevaluatingmass
nodesmanagement (Zhao&Ge 2013).
 The abilityof deal withmass-data– the volume of databeingtransmittedisstaggering,and
withinacomplex environmentcanleadtonetworkinterruptionanddataloss (Zhao& Ge
2013).
 Applicationlayersoftware vulnerabilities –applicationsdevelopedforthe applicationlayer
that don’tfollowstandardscancause bufferoverflow weaknessestobe exposedinthe
software (Zhao& Ge 2013).

9. Stakeholders and Analysis method
The IoT is a digitisedconnectionbetweenthe internetandthe technologyappliedtocommondaily
activities,includingapplicationswithinprofessional businessenvironments. IoTandSmart
technology withinthe home hasn’tyetbe widelyadoptedbyeveryday consumersbecause of the
isolatednature of the technology;the lackof collaborationisasymptomof anabundance of
competitionlackinguniformity (DeMers2016).
Stakeholders interested in/affected by IoT
There are several stakeholdersthathave aninterestinIoTincludingsome thatare affectedbyit. The
followingprovidesalistof the relevantstakeholders:
 Businessowners –theydeterminehow theirbusinessoperatesandwhetherthey
implementIoTtobenefittheiroperations.
 Employees–AffectedbyIoTadoption,alteringtheirrolesandresponsibilitiesorremoving
themcompletely
 Service providers/productsuppliers–supplyservice/productandprofitfrombusiness
opportunities
 Customers– decide service/productvalue andinfluence societal examination/adoption of
technology
 Governmentauthority –setstandardsfor IoT
Stakeholder Analysis
Figure 4: The image above isof the power/interestgridmappedwithaforementionedstakeholders
(stakeholdermap.com2017).

10. Risks
Users of IoT technologyface financial,social,ethical,andlegal challengesandthe followingisalist
of risksassociatedwitheachstakeholder.
 Businessowners –hard todetermine ROIforIoT implementation.
 Employees –rolesmaybecome redundant.
 Service providers/productsuppliers –challengesprovidingproductsandservicesinanew
technologylandscape.
 Customers – no uniformstandardsforsecurityare setandheterogeneitypresentsprivacy
concerns.
 Governmentauthority –difficultydeterminingbestpracticesforIoTtechnologyandhow to
approach data governance.

11. Resolutions
SecuringdatawithinanIoT infrastructure mustbe consideredatvariousplatformsincludingthe
device level,networklayers,cloud,andenterprise back-endsystems (Lucero2016).The modelsof
data that the securityshouldbe appliedtoare dataat rest,that is data storedinthe IT infrastructure
and storage mediassuchas serversand remote cloudstorage facilities; datainmotion whichrefers
to the transmissionof dataacross a medium; datainuse whichis data beingaccessedbya user
throughthe system (Ernest&Young2011).
Perception layer security solutions
There are several solutionsforWSN andRFID technologieswithinthe perceptionlayerwhichare as
follows:
 Accesscontrol (RFID) – preventingunconsentedreadingof tags,includinglabelfailure,chip
protection,and antennaenergyanalysis (Zhao&Ge 2013).
 Data encryption(RFID) –encryptionof RFIDsignal usingan appropriate algorithm;a
nonlinearkeyalgorithmbased onthe displacementcalculationwassuggested because of its
lowpowerdemandandcapabilitytoperforminhighspeeddatatransferenvironments
(Zhao& Ge 2013).
 Keymanagement(WSN) –thispertainstothe generationof keysandforward/backward
privacymeaningthatcurrentkeysaren’tcompromisedbyfuture keysandvice versa;key
distributionprotocolsinclude simplekeydistributionprotocol,key pre-distribution
agreement,dynamickeymanagementprotocol,andhierarchical keymanagementprotocol
(Alzaidetal.2010; Zhao & Ge 2013).
 Secretkeyalgorithms(WSN) –thiscomprisesof the asymmetric(RSA,ECC) andsymmetric
keyalgorithms(Skipjack,RC5);processingpowerof deviceswithinthe WSN are generally
weakand sosymmetricalgorithmsare favoured;howeverthere isresearchbeingdone for
the asymmetricECCalgorithminthe keymanagementarea (Zhao& Ge 2013).
Network layer security solutions
The networklayerfunctionswithinthe internetandexistingnetworkinfrastructuresandthe
structure of IoThasn’t completelybeenadoptedbytraditional systems (Zhao&Ge 2013). There is
no establishmentof IoTinfrastructure withstandardsandclearmodesof operation; the devices
themselveshave lessprocessingpower,nodelocationisn’tstaticbecause of the mobile nature of
remote devices,andthe energylimitations (Zhao&Ge 2013). These shortcomingsare a factorto the
susceptibilityof IoTimplementationstoprivacyandsecuritythreats (Zhao&Ge 2013). Some
approaches to safeguardingthe networklayerare asfollows:
 Cohesive authenticationmechanisms –endto endauthenticationandkeyagreement,
publickeyinfrastructure (PKI), andwirelesspublickeyinfrastructure(WPKI) (Zhao&Ge
2013).
 Networkvirtualisation –virtualisationallowsthe centralisationof confidential data and
the implementationof secure networkaccesspolicies (Bradford2014).

12. Application layer security solutions
The diversityof the applicationlayerisachallenge withuncertainresolutionsbecause itispresentin
manydifferentenvironments andthese dynamicenvironmentshave varyinglevelsof security
requirements (Zhao&Ge 2013). Some solutionstothese problemsare listedbelow:
 Technical
o Acrossheterogeneousnetworkauthenticationandkeyagreement –basedon
symmetrickeycrypto-system, publickeycrypto-system, andcertificationtransfer
technology (Zhao&Ge 2013).
o The protectionof private information –thisinvolvesthe use of fingerprint
technology,digital watermarking,anonymousauthentication, andthreshold
cryptography (Zhao& Ge 2013).
 Non-technical
o Increasingthe awarenessof safety –provide informationtouserssothattheyare
aware how the technologyworksandhow theirinformationisgathered,additionally
the implementationof securitypracticesrevolvingaroundthe use of IoT (Zhao& Ge
2013).
o Strengtheninformationsecuritymanagement –thisinvolvesresource management,
physical securityinformationmanagement,andpasswordmanagement (Zhao&Ge
2013).

13. IoT ethic issue:
Introduction:
Withthe developmentof wirelesstechnologyforexample RFIDtechnologies,Wi-Fi,4G,and5G,
physical objectivescanbe connectedtogetheronthe internet.Inthisnew popularmediatrend,
there are many newrisksandvulnerabilitiesrisenfromtransferringdatabetweendifferent
electronicdevices,manyof themare belongtoethicissues.Inthe ethiccode forIEEE, one of the
core state is‘be fair andequal to everyone’(Tavani 2003),althoughthe IoT isdesignedforeliminate
the discrimination,butthe expansionof Internettophysical infrastructurecause some issuesthat
disobeythe core ethiccode,forexample the surveillancecamerasometimeinvadeperson’sprivacy
because itiseverywhere inthe cityandrunning24 housper day.In thisreport,we will discussethic
problemsinIoTdata managementissue,securityissue,equal accessissue and heavyreliance issue.
1. Data management
More and more physical sensorsare installedtoprovide smartenvironmentandbetter
customerservice,there alsowouldhave the issue of how tomanage the massive amountof
data. Are enterprisesreliableenoughto store the customers’data?Doesthe enterprise
followtheirmoral code whenusingcustomer’sinformation?Isthere anypotential riskwhen
millionsof dataisstoredinone database?Where the data isgoingto be stored?Enterprise
needstoensure all the principlesare followedbefore theystartmakingprofitfromInternet
of Things.
Case study1: IoT data security issue:
Data breach isa verycommon IT problem, butwhenhuge amountof physical sensornodes
isinstalledintocityinfrastructure,thislargelyincreasethe concernof the data safetyissue.
In February2017, a shockingnewsaboutIoT data leakonAU Newsmakespeople re-think
aboutthe securityissue inIoT(Chester2017). The internetconnectedTeddyBearleaked2
millionparentandkidrecordingsdue tothe malicioushackingtoTeddyBearvendor’s
database securityflaw.
Coludpetcompanydesignedasimple wirelessTeddybearthathasrecordingand playing
record functioninit,itisfor the distantparentsand theirkidstocommunicate theirfeelings.
The design iswitha purpose of takingcare of our kids,butCloudpetcompanydesignedthis
teddybearwithoutpropersecuritysetting.CompanyusedMongoDBwithoutafirewallor
passwordto protectthe data; it waseasyto be foundonline accordingtodata analysts from
differentsecurityresearchlab.Hackerstargetedatthese toysand 800,000 people were
exposedinthisattack,emails,password,evenrecordingmessageswere stolen.Some toys
keptreceivingstrangersvoice mail, andthe contentare notappropriate forkidsto listening.
More overthe Cloudpetapphaddesignflawsthatthe stranger’smessagescannotbe
blocked.Some parentsgotransommessage fromtheirkid’stoy,thisdangerthe safetyof
the childrenandtheirfamily.ButCloudpetcompanynevermade anypublicannouncement
aboutthe risksor update of the project.Onlya few dayslaterGermanyhad a similarreport
that warnedthe parentsaboutinternetconnecteddollswhichmonitorthe childrenwithout
customer’sconsents.

14. Irresponsible vendorsabuse the use of IoTwithoutcareful researchaboutthe ethical issue
init; limitedregulationalsogive vendorsloopholestotake the advantage of IoT making
moneywithoutbeingpunishedbythe government.More over,physical sensorsare always
easyto hack and the securityrisksare relativelyhighcompare toothermature electronic
deviceslike smartphone,orcomputer.
Case study2: over-use personal information:
One of the successful implementationsinIoTisIoT inhealthcare,knownasIoMT (Internetof
Medical things).Medical deviceslike thermometers,monitors,andwearablehealthdevice
are connectedthroughinternet,wirelessnetwork,inordertotrack patientsmedical
conditionremotely(MargaretRouse).
Fitbitisone of the representativeapplicationsof IoMTinour dailylife.Fitbitisawearable
sensordevice thatmanypeople wearontheirwristinsteadof watchnowadays.Duringthe
day time,peopleuse thisasa methodof keeptrackingtheirsteps,walkedmiles,heartrate,
calories,evenuse themaswatchto checktime;duringthe nightpeople use ittomeasure
sleepquality,andevenasthe alarmclock to wake themup.Thisis a populartrendto help
people tokeepahealthylife style.The price of thisdevice isverycheapsoitisverypopular
amongall differentage people,fromthe latestupdatedstatisticsat2/22/2017, the active
fitbitusersreach23.2 millionwitha$2.17 billionrevenue (Smith2017). These monitor
sensorsare connectedtosmart phonesappinorder to translate the raw data intoanalysed
dailyhealthreport.Butcomingwithall the benefit,there are alsomanyethical issuesthat
concernscustomers.
Currently,asthere isno specificlaw orregulationsthatdescribe the appropriate waystouse
customer’sinformationforvendorsandenterprises,enterprisesusuallycome upwiththeir
ownprivacypolice accordingto IT relevantregulations.Fitbitshare theircustomer’sfitness
informationwiththeirbusinesspartners.WiththeirGPSlocationservicesandthe analysisof
the dailyhealthreport,theirbusinesspartnerscanprovide relevantadvertisementonthe
smart phone fitbitapptodifferentgroupof people.Withamore accurate targetedgroup
people,vendersare more easilytopromote theirproduct,increase theirrevenue.One
scenario:female fitbituserswhoare andtryingto lose weighbyincreasingexercise amount
duringa specifictime period.Fitbitcanmonitorthe changesfromtheirdailyworkouttime,
workout frequency,andincreasedwalkedsteps.WhenFitbitbusinesspartnersreachthe
analyseddata,one simple advertisementnotice canbe sendtocustomer’ssmartphone via
email ortext,like couponsonsportsgear,specificbrandproteinshake,orevenincludingthe
losingweightproducts(Covert2014).
IoT can predictcustomer’sbehaviourandthought,like artificial intelligence,butitalso
invadesuser’sprivate informationandcausesthe extramoneyspendingonthe productthey
mightnot wantinthe firstplace.Itis unethical touse customer’spersonalinformationfor
furtherbenefits;customersmaynotevennotice theirprivate informationare soldtothe
thirdparty. Advertiseemail,phone calls,adsnotice onthe phone are interruptingcustomers
more than everbefore,becauseof the inappropriate use of personal databythe enterprise,
junkmailsare more specific;peoplefeellikesmartphone ‘knows’everything,theyare

15. undermonitoringfromeveryaspectof life,withoutanyprivacy.The invasionof IoThas
broughtlotsof discussionlike how toavoidIoTmonitoring,isIoTunstoppable thatwe need
to adapt newlife withthe hightechnologymonitoringourdailylife?The bestsolutionis
strengtheningthe regulationsandimprove the ethical code inIoTindustry;more over,
customersneedtoread the termsandprivacycarefully;turnoff the deviceswhennotusing
them.
2. Securityissue
In the boomingInformationTechnologyage,we are tryingto make everything‘smart’.
Differentsensorsare installedonelectronicdevices,like cars,mobilephone.Thiswhole new
level of digitalizationneedsamatchinglevelof securitytopreventinformationbeingused
withmaliciousintention,butfew of these issuesdraw the majorattentiontothe public.For
example,RFIDtechnologyislackof properauthenticationmethod,the sensornodescanbe
easilyaccessbyhacker,it isveryeasyto steal or modifyinformationstoredinthe nodes.
More overthe tags for physical accesssystemare easilytobe cloned
Recenttworesearcherswhose majorincybersecurityremotelycontrolledaJeepCherokee
withoutphysical accesstothe car (Golson2016). Car-jacknow isnot onlyin scientifiction
movies buthappensinreal life.Throughthe wirelessinternet,acomputercan manipulate a
remote car’ssteering,brakes,anddashboardsystem.Once the hackstake overthe control
of the car, theycan cause huge problemtothe car ownerand the society. Earlyback to
2011, researcherswere able todisableafunctioningcarthroughwirelessinternet.Even
thoughtauto manufacturingindustryknowsthe importance of securityissue of IoT,the
customersare still lackof awareness,forexample leavingtheirwirelessconnecteronwhen
they’re notusing,orleave the engine diagnosticporton,will riskthe exposure of theirauto
mobile intoabigdigital equipment.
In October2016, Dyn, an Internetdirectoryservice company,wentthroughamassive DDoS
attack, thisattack broughtdownthe major sitesinAmericaandEurope includingTwitter,
Netflix,CNN,andPayPal(Woolf 2016).Millionswebcamswere recalled(Woolf2016). The
IoT’shuge probleminthiscase is muchworse than DDoS attack,it revealedthe vulnerable
linkinthe Internt.IoTbecame a tool,providedaneasyaccessible wayforhackerstoconduct
the attack. Sensorswhichconnectedtothe Internetwere notthe target,butthe Internet
behinditis.Attackerscan take the advantage of the IoT devicestogetintothe network,
because consumerare notaware of the the importance toputon passwordonIoT devices.
3. Equal access issue
The main code of ethicfor InformationTechnologyistotreateveryone equally,withoutany
discrimination,butthe realityisthere are manyregionscannotaccess Internet,notmention
to connectall kindsof physical devices.AccordingtoIDC’sresearchstudy,the toprankingof
IoT countries(thisincludingthe calculationof coverage,infrastructure installation,levels of
deployment) are the UnitedStates,SouthKorea,the UnitedKingdom, Australia,andJapan(i-
scoop2017)( figure shownasbelow).We cansee all the top rankingcountryare developed
country,it isunethical thatpeople fromdifferentcountrycannotshare the same resource.
The more developinginIoTindevelopedcountrythe biggerthe gapwill be betweenthe rich
and the poor inthe worldof Internet.

16. fig 4.1
4. Heavyreliance issue inIoT
From Morgan Stanley’sprediction,by2020 more than 75 billionsof physical objectswill be
involvedinInternet(Popescul &Georgescu2014). Overthe last 30 years,we changedthe
wayof humancommunicationnoone can evenimagine.Withthisgrowthdigital deviceswill
become partof our life.IoTtrendseemsunavoidable,organizationsuse the implementation
of IoTto helpwithdecisionmaking;governmentanalysethe datacollectingfromwireless
sensorto allocate resource;citizen’swearfitbittomonitortheirhealthconditions.Those
simple example canshowhowmuchwe relyonIoT nowadays,andwe are becomingpartof
IoT network.
Solution:
Securingpersonal dataisone of the mostefficientwaystomitigate the ethicissuesinInformation
TechnologygeneratedbyInternetof Things.There are mainlytwotypesof datainIoT, customer’s
data and enterprise data(Covert2014). Differentsolutionsneedtobe appliedondiff8erenttype of
data to protectthe data. For personal data,on one handenterprisesneedtofollowthe ethiccode in
IT, ‘respectthe privacyof others’;donot use the personal datafor profitwhichmaypotentially
cause inconvenientforcustomers.Onthe otherhand,customersneedtobe aware of protecting
theirprivacyfromdigital devices;customerscansigna waiverwiththe companywhoproduce their
personal datainorder to limitthe company’susage of the data.Individualsneedtobe aware of all
the wirelessdevicesare notflawless,beforewe rushintothe worldof ‘smartenvironment’,we need
to learnhowto avoidIoT data andsecuritybreach.
For enterprise data,companyneedtomake sure thattheirsecuritytechnologiesare strongenough
to adoptmore wirelessdevicesintotheirproduct.Firstof all,because the IoTnetworkprotocolsare
more complex,deviceadaptabilityismore difficult,andthe networkscalabilityisbigger,vendors

17. needtobuildnewfeaturesforIoTnetworkssecurity,like end-pointsecuritycombine withthe
traditional networksecuritymethod(physical sensor’sdataneedtosetpasswordforbetter
protection).Second,authenticationmechanismneedtoimplement oneverylevelof digital devices,
for example,adddevice-to-device authenticationwithoutinvolvinghumanoperations.(Press2017).
Thirdbut not the last,integrate securityaspartof the infrastructure installation,thiscanlargely
reduce the latersecurityproblem.
BusinessIssues:
Introduction:
The concept of the internet of things (IoT) is letting physical objects communicate with each
other with the use of a digital communication like Wi-Fi and the internet. Businesses like banks were
the early adopters of IoT; an automated teller machine is an example of an IoT device. According to
Computer Weekly, businesses are to utilise 3.1 IoT devices in 2017. IoT devices range from sensors
to large automated factory machines. The growth of IoT applications in the business sector is
estimated to be about from $189bn to $866bn by 2020 (Saran 2017). It is evident that industries are
increasingly adapting to the trend of IoT machines and devices due to its benefits like efficiency and
decreasing cost of the said devices.
Business or organisational Issues:
IoT in Businesses and its benefits
With the help of IoT, businesses are getting things done efficiently than before. When devices
are connected,things can be done quickly since machines and devices can adapt and synchronise to
current situation and environment. There are numerous industries that are currently utilising IoT in
their processes (Behmann 2015). These industries are:
 Manufacturing - Automation, machine vision, robot, and machine learning
 Health - Clinical labs, health monitor and diagnostics, treatment, and health insurance
 Construction - Smart building, climate control systems, lighting control, and energy
 Retail (Shops and Hospitality) – Smart ePoS (Electronic Point of Sale), signage (Electronic
Billboards), ATM/Kiosks/Vending machines, and so on
 Energy - water, waste, pipeline, refinery, and air
 Environment - Sensors, Air and water quality
 Security – Surveillance and monitoring
 Communications
One example for a business implementing an IoT environment is an automated factory.
Automated factories replace human labour with automation with the use of robots and sensors. There
are many benefits of implementing an automated factory. The first benefit would be the increased
productivity. Robots and machine do not get tired and can run continuously with little to no
downtime, their only requirements to function are electricity and programming. Second, machines
may cost less compared to a skilled labour in the long term. Labourers are entitled to wages and
benefits; they also need breaks because it is stated in the law. While machines may require a
significant investment, it may cost less in the long term compared to having a skilled labourer doing
the same task. The third benefit is improved quality. Machines use sensors that are very accurate,
errors and defects are easily detected and avoided compared to human labour. The fourth benefit

18. would be the improved safety. Machines can be repaired and replaced while humans need to take
more safety measures on conducting intensive labour, machines are preferable in these tasks to avoid
physical injuries to a labourer and avoid a lawsuit for the company. Automated factories with the aid
of IoT devices would also speed up business processes that are previously done manually. The fifth
benefit would be the borderless connectivity of businesses and infrastructures. Since IoT devices are
connected to the internet, managing and monitoring these devices would be straightforward and
effortless. It would be easy to keep track and analyse critical business functions and make any
adjustments that would best suit an organisation’s needs.
Effects ofIoT in Labour Force:
Companies and industries usually have an ERP (Enterprise Resource Planning) system
implemented in their day-to-day business processes. An ERP system is a software suite that allows an
organisation to integrate applications to manage and automate business functions. With the
application of IoT in ERPs,a business process can be fully automated. One example of this is an
inventory system which is a part of an ERP. When IoT an IoT device such as a sensor detects a low
count of raw materials used in producing goods, it can automatically send a purchase order to the
supplier for raw materials. Making a process fully automated reduces turnaround time and errors
making the whole business process efficient and productive. Given the benefits brought about by
automation in industries like manufacturing, many people are losing their job because of this.
According to an article by Fortune, the U.S. has lost 5 million jobs from 2000 to 2016. The
manufacturing industry, however, grew by 17.6 percent in the same period. 88 Percent of the jobs,
however, were mainly taken by robots and other factors (Lehmacher 2016). Another report by Asia
News Monitor estimated about 137 million in the labour workforce from Cambodia, Indonesia,
Thailand, and the Philippines are at risk of losing their job to automation (Bangkok 2016s).
Automation has a positive impact on industries with regards to cost savings, output, and efficiency.
However,since many jobs will be replaced by automation this, in turn, would have a negative impact
on the labour force, as automation would replace their jobs.
IoT in Industries and Data Privacy:
Industrial companies and manufacturing plants are increasingly relying on collected
information from networks of sensors installed at key points throughout a factory or field site. Many
industries, such as oil pipelines and refineries, pharmaceutical and chemical companies, food and
beverage manufacturers,and power plants, are deploying a wireless network to monitor the operating
environment. Vital conditions like air pressure,electrical current, weight load, fuel levels,
temperature,corrosion, pipe flow, seismic activity along with the status of the machines used in the
operation of the business. This technology enables people to monitor real-time data remotely and also
make any business decisions without going to the site. The reliability, accuracy,and time criticality of
data generated and transmitted in wireless networks are probably the most critical factors that need to
be ensured in any industrial environments. As sensor networks transmit sensitive, factory-specific and
important data,it is essential to guarantee that accurate data are measured,transmitted reliably, and
received on time by the intended recipient. Data communication is very important in automated
industries. Any delays or failure of data communication could cause major problems in the production
line, disrupt service, lead to machine failure or damage, it can even put the lives of the people working
on the site at harm. Incidents mentioned can be avoided by the strategic planning of network topology
and redundancy, network security should also be taken into consideration. Manufacturers are
increasingly depending on the information received from wireless network monitoring, collecting and
analysing important data abut expensive and complex machinery and their states. Security, reliability,
and privacy are all interconnected. The role of information privacy and security are as important to
reliability; this ensures data integrity and security. It denotes that the data sent and received are not
tampered with and accurate and are only accessible to the intended individuals. For an efficient and
effective data transmission, six key objectives are considered in dealing with such implementation.

19. 1. Confidentiality: This objective focuses on data confidentiality and privacy. Unauthorised
access to information in an organisation is unacceptable as it could divulge any vital company
information, like trade secrets,to competitors.
2. Integrity: The integrity objective refers to preventing falsification, modification of data
transmitted in the network by unauthorised/untrusted persons or systems. More specifically,
in the automation system, this applies to information such as product recipes,sensor values,
or control commands. This objective includes defence against alteration of information via
message injection, message replay, and message delay on the network. Violation of integrity
may cause safety issues,i.e., equipment or people may be harmed.
3. Authenticity: Authentication is the act of confirming the true identity of a system user or
entity and mapping of this identity to a system-internal principal (e.g., valid user account) by
which this user is known to the system. In other words, authentication distinguishes between
legitimate and illegitimate users in a system
4. Freshness: This focuses on the timely transmission of data. This objective is very critical in
monitoring systems in the field of energy production. If there is a significant increase in the
demand for power, the power generating facility should quickly adjust its operation to avoid
power surges and outages.
5. Availability: This focuses on ensuring that unauthorised persons or systems cannot deny
access system of resources to authorised users. For automation systems,this states to all the
IT components of the plant, like control systems, safety systems,operator workstations,
engineering workstations, manufacturing execution systems, as well as the communication
systems between these elements and to the outside world. In simple words, the availability of
services ensures that only authorised entities can access data,services,and other available
resources when requested. Violation of availability, which is also known as a denial of service
(DoS), may not only cause damage but may also affect safety issues as operators may lose the
ability to monitor and control the process.
6. Nonrepudiability: Nonrepudiability refers to the state that a service that provides proof of the
integrity and origin of data, i.e., an authentication that with high assurance can be asserted to
be genuine. This security objective is relevant to establish accountability and liability. In the
context of automation systems, this is most important with regards to regulatory requirements,
e.g., U.S. Food and Drug Administration approval. Violation of this security objective has
typically legal/commercial consequences,but no safety implications
After discussing the benefits and objectives of IoT in industries, some of the facts that are linked to
IoT security in industries will be discussed further. According to an article on CNet,there could be
1.3 million robots in factories globally. That is 1.3 million machines at risk of being hacked. Industrial
machines have poor software protection, and some run on outdated software according to research by
TrendMicro. The team found that thousands of machines run using public IP addresses,this increases
the risk of these machines from being hacked. Programmers and users can manage their machines
remotely, accessing and controlling machines through their computers and mobile devices. If the
connection is insecure, hackers could easily intercept and gain unauthorised access to these unsecured
connections, leading to sabotage and product defects. One example is a report from BBC News. A
German steelmill suffered massive damage when a furnace blasted that was a result of a cyber attack
on the plant’s network. Emails were used to steal user credentials and give the perpetrators access to
the mill’s control system; this led to a malfunction of some of the mill’s components that resulted in
an explosion. Another report of a destructive disturbance in an infrastructure is the Stuxnet worm that
disturbed nuclear centrifuges in Iran. Stuxnet was developed by the US and Israeli governments for
the sole purpose of disrupting the enrichment of uranium in those centrifuges. Iran’s 20 percent of
centrifuges spun out of control and were destroyed. It is now clear how important cyber security is to

20. industrial facilities. Any exposed vulnerabilities might lead a financial consequence to an
organisation; it may also put the people working on the facilities in harm's way. It is the responsibility
of an organisation to protect and safeguard its interest. They are also accountable for the members of
their organisation. Any employer has the responsibility to provide and maintain a safe working
environment, under section 19(1) of the Occupational Safety and Health Act 1984. This act is called
the employer’s duty of care,and it applies regardless of the terms or type of employment, and it also
includes casualworkers. The employer's 'duty of care' comprises of protecting any employee from
both physical hazards (for example, slippery floors, heavy loads, unguarded machinery and hazardous
substances) and 'psychosocial' workplace hazards (for example, workplace bullying, violence and
aggression).
Here is the employer’s ‘duty of care’ to its employees, these are:
 Provide and maintain workplaces, plant and systems of work so that employees are not
exposed to hazards.
 Provide information about the hazards and risks of the job;
 provide with instruction, training (including induction) and supervision so that employees
can work safely;
 consult and co-operate with safety and health representatives (if any) and employees
about safety and health;
 where it is not practicable to avoid the presence of hazards, provide adequate personal
protective clothing and equipment without any cost to employees
 ensure safety and health of the plant and hazardous substances at the workplace, so
employees are not exposed to hazards.
As discussed, there were incidents of infringing cyber security in some industries that almost led up to
harm on individuals. Stated in the Occupational and Safety Act of 1984 that it is an employers
responsibility to ensure workplace safety. Having digitally unsecured and hackable equipment and
devices may lead to harm on employees on the organisation's premises, which put the organisation
ethically and legally liable.
Resolutions:
Machines and devices are replacing the increasing use of IoT in industries such as
manufacturing plants and offices, some human labour. Therefore,there is a growth in unemployment
since jobs are lost due to automation. A solution to the dilemma is to tap other industries that are
needing resources. Industries like technology are rapidly expanding due to modernisation. The
increasing use of technology-based objects like computers and machines does require resources and
workforce to operate and maintain. If companies, the education sector, and the government invest in
educating and preparing people with regards to technology, it will open many opportunities for them
to work in the IT industry.
The risk of a security breach in using IoT devices is rapidly increasing. By having more
people with technical knowledge on how to secure this would be important to an organisation. An
organisation can either have their internal technical team to handle any cyber security related matters;
they could also hire a third-party vendor that specialises in the cyber security field that would ensure
that any exploits and back doors are secured. A company must also implement strict guidelines and
rules in handling sensitive information and equipment that are vulnerable to security breaches. One
example could be a restrictive access on company assets,only those with enough authority can access
sensitive information. By ensuring a secured network and best practices are applied in information
security, the risk of any security breaches would be reduced.
Conclusion:
The application of IoT in organisations and businesses will bring about many benefits
regarding cost and efficiency. IoT machines and devices are capable of many activities that are

21. limited to the abilities of a human being; lifting heavy objects and working non-stop are just some of
the activities that machines can only do. Given that IoT machines are more capable than humans in
some activities, it is apparent that machines are taking over in most of the jobs in the manufacturing
sector. The growth of unemployment can be resolved by utilising other growing industries like
tourism, art, and technology. By investing in these sectors,people who lost their jobs in the
automation of the manufacturing industry can work in the said growing sectors.
IoT opens many opportunities for businesses because it makes a process faster and efficient.
However, IoT also exposes company infrastructures and assets cyber threats such as hacking.
Furthermore, the increased usage of IoT in organisations also increases cyber threats. An organisation
can implement strict information guidelines and rules. They can also have a specialised team, from
internal or from a third party vendor, to prevent any security and preventive measure that would
reduce or eliminate any cyber threats and attacks.
Legal issues:
The majorlegal issuesof legal issuesIotinvolve indataprotectionandprivacy.Besides,telecom,life
science obligations, liability of providers, intellectual property and cybercrime. Its everywhere
happeninginmostof Itcompanyandit’sbecomesthe majorconcernof company.We amyl okathow
Iot involvesinbothpositive andnegative lights.inourdailylife’sIotrelevantwithourwearable tech
,appliances, cars and how we receive health care(Covert 2014)..
The major legal issues privacy- access, uses and when they apply. The most common relationship
betweenthe partiesinvolvedbuyerorsponsor,platformor cloudprovider,entitycollectingof data.
Many companiesfailedtoapplythese rules.The purpose of processingof data most companydidn’t
notify the users. And transfer of personal data outside the third parties without acknowledge the
users. Privacy security and sanctions strict measures shall problem of adopting for most companies
(Evans 2011). Data breach happening now frequently. Sanctions, fines more happening without
followingthe policyof theItcompany.Theseare potential legalissues.Investigationof dataprotection
of all application also important factor of Iot.
Anotherpotential legal issuesinvolvedcompanyfailedtoacquire propertelecomlicense.Andusage
of allocated spectrum for internet of things communication. Interconnection, interoperability and
portability of the service. Proper numbering and addresses of the network protocol. Permanent
roaming is possible for it company to give service as the user demand(Woolf 2016). Liability of
providersissuesinvolvedforexampleidentifythe entityforthe misuseandare the supplierandbuyer
isnotprotectedwithinthe lawof organizationpolicy.Penitentialanotherissueinvolvedlikeacquiring
intellectual property license for cross license for existing and new patents between the companies
collaboration partnership.
Another potential Iot legal issues involved cybercrime. It’s affecting lot of organization to deal with
the situation.Internalpoliciesonusage of computerdevices,databreach.Potentialcorporate criminal
liability,internal code of conductfollowingissues(Golson2016).Insurance coverage isapplyproperly
within the laws.

22. Case study:
Accordingto the cisco talosand companynotifiedthee3vulnerabilitiesdetected.Itstook12 months
to publishfixesfor2problemsand21 monthsto publishfix for1vulnerability.Deviceownermaynot
be aware of fixesorhave the skill toinstall updates.Fixesoccurfor a yearlylaterinfirmware update,
no notification is given to public or trane customers. These are potential major legal issued
haapend.The company should focus on working on the damage control. When its comes to the
vulnerabilitieswithIotvendersmaynotinformthe publicaboutcritical issuesintheirproducts.Since
products at times may be updated or new lines come out, vender any not necessarily invest in
maintain the security of existing products. The issues of patching mechanism may also be a factor,
where they might not even exist for some products as well as layman/technical issues installing
patches or firmware updates in Iot products. Larger organizations may also have issues scaling to
patch/update IoT related devices, given the size of organization and number of units effected
Solution:
They are many solutions can help to manage the legal issues within the organization. Awareness
building for Iot will involve similar approaches currently have to be developed. Risk management
trainingshouldbe providingwiththe companiesto the employees (Chester2017). And Vulnerability
managementshouldalsobe provided.Forensicsdepartmentshouldincludeinthe companyandbuild
more strong partnership with recharger, vendors and procurement department.

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