It is an ecosystem of inter-connected objects/things which are
connected via the internet.
The object/thing can be a person/animal with a bio-chip (such
as pacemaker), or a wifi-enabled car, or any other object with a
unique identifier and a technology to connect.
These devices use advanced sensors, embedded microprocessors,
and other communication hardware to transmit data of their
environment to each other. The devices should ideally do the work
automatically.
The IoT refers as much to the actual network as to the
fascinating use-cases that can be facilitated by it. For e.g., if
IoT enabled water bottles in a hotel room are getting empty, new
water bottles can be delivered to that room before the customer
requests for it. A common example is that of a smart home, where an
assistant such as Alexa can order groceries if they are running low
from Amazon or any other store.
Security Problems:
Cyber Attacks: IoT has been target of various boot force and
DDoS attacks. One such example is the MIrai Botnet. This is most
crucial for instances involving default passwords.
Financial Crime: Given the rise in electronic payments, IoT has
to deal with major and minor identity thefts. Social data of people
is mined to extract usernames and passwords.
Data Security: People are always going to be concerned about
their privacy. Firms dealing with intimate information of people
will always have to take special precautions.
As more and more devices get connected, there are higher
chances of hacking even the simplest of devices. For e.g., if
hacked, an IoT connected charger may show 100% charge even when it
is not.
IoT is in its nascent stage and many of its shortcomings are
still unknown. Organisations will have to wait longer to more ably
recognize its flaws and benefits.