Download now: The Downfall of Cable, and the Rise of 5G!

Wyze Confirms Data Leak

Written by Monica Savaglia
Posted December 31, 2019

When you’re signing up for an account online, there’s always a thought in the back of your mind that there may be a risk of having your data or account hacked, but you probably don’t think too much about it after that. You want to believe your information is safe. 

It's not until you get that dreaded email in your inbox saying your data has been compromised. And sometimes you don’t even get that email until the news has already leaked. At that point, the company has nothing left to do other than to send out an email to its consumers letting them there was a data breach or a hack. 

Most often, you’re the last to know about the risk and how your data could have been compromised.

So it probably doesn’t come as a surprise that another hack happened that involved Wyze Labs Inc.

Another Day, Another Data Breach

Wyze Labs Inc. creates smart-home cameras and devices. The company makes $20 security cameras to use around your home. There’s been a growing desire for people to feel safe within their homes in the past few years. At-home inexpensive security cameras have been something people want to buy. Having the ability to check in on their homes via an app on their phones gives people a sense of peace.

The consulting firm Twelve Security discovered the breach on Wyze’s data. Wyze has admitted that more than 2.4 million users have been exposed during this breach. This breach left people’s data exposed.

Wyze is saying that people’s financial information was not included in the breach. The information at risk involves people’s email addresses, a list of cameras in the house, Wi-Fi SSIDs, and health information including height, weight, gender, bone density, and more. 

The Twelve Security researcher who disclosed the issue has described it as the largest breach their firm has seen in their 10-year career, saying:

If this was intentional espionage or gross negligence, it remains a malicious action that must be answered in the form of a decisive, external, and fast investigation by U.S. authorities.

Wyze is currently investigating the security risks involved and let the public know. The company said, “We are confirming that some Wyze user data was not properly secured and left exposed from December 4th to December 26th.”

The company mentioned that it plans to email any affected customers. If you have a Wyze account, it’s a good idea to change your password and turn on two-factor authentication.

Wyze co-founder Dongsheng Song wrote in a follow-up post to say:

We’ve always taken security very seriously, and we’re devastated that we let our users down like this. We are working on an email notification to all affected customers and plan to release it in the near future.

We live in a world where it’s hard to have a sense of security, especially as more and more technology and devices depend on being connected — and being connected has its consequences. We can’t be naive to that. 

My heart drops when I get an email that says my data might be at risk. It’s not something I want to read or deal with. 

Wyze Is Not Alone… 

Wyze’s data breach isn’t an isolated incident, and it won’t be the last. In fact, just a few weeks before Wyze’s data breach announcement, another security camera company, Amazon’s Ring, recently had its devices hacked into. 

One family in Tennessee reported that they had bought a Ring security camera for Black Friday and it recently was hacked by a man who talked to their 8-year-old daughter in her bedroom. The hacker gained access to the camera and was telling the daughter he was Santa Claus. He told her, “You can do whatever you want right now. You can mess up your room. You can break your TV. You can do whatever you want.” 

This is unnerving. The intention of buying any security cameras for your home is to feel safer. Ring’s security camera has HD video, night vision, and a two-way talk feature, so in addition to being able to talk through the device, the hacker could have had access to the camera, too. This is an invasion of privacy, and it makes people very cautious. For some, it makes them feel hesitant about technology and incorporating smart devices like these security cameras into their homes and everyday lives.

The need for better security is obvious, which is probably why we’re seeing a rise in the market forecasts for the global security market size. According to Statista, the market is forecast to grow to $248.2 billion by 2023. Cybersecurity will assist in protecting computer information systems, hardware, network, and data from cyberattacks. 

A ramp-up in cybersecurity for companies that are dealing with sensitive areas like security cameras and smart devices is crucial. People want to feel secure. They don’t want their data compromised. And they most definitely don’t want hackers hacking into cameras to talk to or watch them. 

Cybersecurity will be the glue that is needed to keep these two worlds working together without fear. Of course, there will always be some level of risk, but there shouldn’t be as many incidents as we’ve seen and experienced in the last few years. With the rise of more technology and innovation, the need to feel secure will increase. 

Going into 2020, keep an eye out for cybersecurity companies aiming to provide you with the protection you need. It will be these companies that will know how to stay ahead of hackers and their ill intent. 

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

Buffett's Envy: 50% Annual Returns, Guaranteed