IoT has been the stuff of science fiction, like Buck Rogers, for some time. It's not bad as a (very) long-term goal. But these devices individually have very little human interaction, and very limited value functions. We might as well call it what it is that we're building - an Internet of Commodities.
When IETF drew up IPv6 standard back in 1995, they thought security is critical issue for "connect everything" world, so they decided to make security feature (IPsec) mandatory in IPv6.
After 20 years, IPv6 still do not really make "connect everything", let alone IPsec. It is yet another unfortunate story that they had foresight, they provided answer but that answer was not exactly what needed in real world.
Thanks Tom and Larry!! Those are the two other perspectives to look into.
By the way,...while scanning though today's news paper in the morning, read this article in one of the leading newspapers in India: "Hackers send spam emails using web-connected refrigerator"...what a co-incidence!! Or may be, we are thinking, discussing about IoT in our daily lives much more frequently...how it would shape our future [both pros & cons]...
Hackers are one aspect, but even without them there is the situation where a device that I own is telling someone else something about me. Maybe I really don't care if someone knows that I do my wash on Sunday nights, but I want to be able to make that choice instead of having it happen behind my back or buried in the fine print of a contract that I probably didn't read. If they anonymize the information much of that concern goes away, but then they lose the ability to track specific instances of their devices. There are still rules to be written about how to operate in this new environment, what is acceptable and what is not.
There does seem to be a correlation between increased complexity and increased vulnerability. If your laptop crashes, you lose hours of work. If your 'smart home' crashes, it can get cold and dark in a hurry.
As there are hackers around always, as IoT spreads across the globe, number of hacker also would increase, isn't it? Always there will be threats remaining, even if the development around tightening security becomes multifold with the growth of IoT. Won't this make systems, machines, humans more vulnerable as things gets connected together, if we wish to do so?
btw...the link "A recent McKinsey Global Institute report, "Disruptive technologies..." seems to be broken...leading to the EETimes home page.