1. Should We Believe the Hype? Stephen Fast Lead, Cyber Innovation Strategy Cyber Innovation Division Applied Research Laboratory The Pennsylvania State University saf8@psu.edu

2. Backdrop Much discussion and hype – Real danger or paranoia – Follow the money Vulnerability in antivirus software “Worry-free experience”: Director of Cyber Security Technology and Initiatives, Intel Corporation The customer is always right

3. PC trends Capability ↗ Complexity ↗ Vulnerability ↗ Attacks ↗ HW costs ↗ Exploits ↘? PCs have become more complex, more costly, expensive with unimproved security→ opportunity for mobile devices

4. Trends Smart phones outsold PCs beginning in Q4 2010 Smart phones, tablets, mobile devices + cloud = more utility and advantage for most customer applications Strong brand loyalty (84% Apple, 60% Android) Battery longevity #1 customer complaint

5. Can the promise be fulfilled? Consumers prefer convenience over security – 32% believe smartphone is secure, 21% believe secure enough to make a purchase Mobile device attacks increasing Publicity war about threat Are we going to make the same mistake we made for PCs for mobile?

6. Stakeholders Consumers – 38% use mobile for payments, 18% for banking – Fast adoption of mobile credit card readers (1000% growth) – Low adoption of security protection adoption for mobile devices – Pervasive belief mobile devices are more secure than PCs Lacking awareness Low personal experience (except marketing) – $0 liability protection for credit cards

7. Stakeholders Banks – $0 liability protection for credit cards → its really the credit card companies and vendors problem – Financial loss and liability Business – Mostly driven by sensitive data leaks and business IP concerns – Primary drivers Early adopters of BYOD driven by productivity gains and competitiveness Others will segregate, control or deny devices Competition will decide

8. Reasons for pessimism Financial incentives for carriers (managers of the devices) – Short duration support – Infrequent updates – Renew every two Limited resources – Battery – Bandwidth May drive knowledgeable consumers to jailbreak devices – Large malware exploit concern Some researchers believe mobile device security is significantly behind PC

9. Reasons for Optimism Devices built with understanding of previous security issues Wide adoption for IT cost savings Productivity promise for adopters of BYOD Financial sector to meet consumer and business demand Stabilization of iOS and Android OS Growing awareness

10. Conclusions Unclear whether security within technological reach – If so, it requires serious commitment Align incentives Identify market proponents willing to invest – Vested interest in outcome – Compelling business case – Proponent may not b e obvious