The first integrated solution to effectively manage and secure the environment of internet-capable consumer devices Will the Consumer IoT phenomenon blow up in our face, or can its sustainability be ensured by means of a cutting edge ‘chain of trust’ realization? July 14, 2020 DTS IoT B.V. – Strictly Confidential DTS IoT Founders Scott M. Ward, President & Founder • 30 years experience in IT security technology • Former Executive Director for Corporate Development at Experían Donald Kalff, Advisory Board Member • Former Executive Board Member KLM, Royal Dutch Airlines • Co founder AIMM Therapeutics, MondialDx, Oxytone Bioscience, Tillia and Mexiletine Bioscience. Kevin Dobbins, Advisory Board Member • Specialist Cybersecurity Solutions Group at Microsoft • MSc Cybersecurity; CCSP, SSCP, CISM, ISF, Ethical Hacker vs8, ITIL v3 certified DTS IoT B.V. – Strictly Confidential 2 The Macro Picture • IDC and Gartner estimate that in Western Europe alone >20 billion IoT consumer devices will be coming on stream in the next 5 years • IoT in combination with 5G is seen as engine of a new wave of sustainable growth • The pandemic has significantly increased the reliance on the digital infrastructure and highlighted the need for investment in next generation products and solutions • In the midst of an economic depression roadblocks to digitally empowered economic growth should be identified and removed DTS IoT B.V. – Strictly Confidential 3 EU Policy: Shaping Europe’s Digital Future • “European technological sovereignty starts from assuring the integrity of our data infrastructure” • “Investing in innovation is only part of the issue, however. A true digital transformation has to start from European citizens and businesses trusting that their applications and products are secure” • “Europe must invest more in the strategic capacities that allow us to develop and use digital solutions at scale” • “ A dedicated strategy for SME’s aims to reduce red tape and help to do business across the single market and beyond providing access to finance” DTS IoT B.V. – Strictly Confidential 4 The Design of any Consumer IoT solution should start from the following principles • It must be consumer centric in order to achieve fast and widespread adoption The solution addresses the privacy concerns of the consumer The solution must be available to all consumers, i.e. pre-installed, or otherwise easy to obtain/download and self-installing The solution is ‘idiot proof’ Its usage must follow established interface principles, e.g. driven by icons and drop downs Consumers must feel they are in control • Consumers are generally not prepared to pay extra for security (which of course they always indirectly do) • Consumers do not understand (public key) cryptography demands Any consumer based key management burden will negatively impact on adoption • Consumer awareness of password security/management is low DTS IoT B.V. – Strictly Confidential 5 Accepted consumer IoT threats and risks • IDC and Gartner project the build-up of consumer related IoT devices in Western Europe alone to exceed 4 billion by 2020 • Such massive ‘platform’ of IoT devices represents a huge surface for hackers Commonly accepted threats and security risks include Privacy breaches and theft of sensitive data (e.g. financial, medical, unlawful home entry) ‘Bricking’ of IoT devices (the device becomes maligned, forcing a firmware reinstall). Ransomware and ‘Doxware’ (locking a device and threatening release of precious or confidential documents) Aggregating IoT devices in volume into rogue botnets to conduct DDoS attacks. This could be ‘leveraged’ to disrupt critical infrastructures. The known Mirage attacks (with an estimated base of merely a few hundred thousand infected consumer IoT devices) are a unmistakable precursor. DTS IoT B.V. – Strictly Confidential 6 Current undertakings and initiatives Many valuable and necessary undertakings and initiatives have evolved in recent years, including e.g. • EU directives and EU commission related initiatives such as the Cyber and Digital Citizen’s Security Unit endeavors and output • National rules and regulations, industry codes, soft laws • AIOTI • GSMA But even collectively they contain a fundamental flaw: they fail to address the legacy problem of billions of unprotected existing consumer IoT devices at the time of implementation. DTS IoT B.V. – Strictly Confidential 7 Hardware based solutions: the holy grail? • Without exception, trade related alliances around the world are pushing hardware based solutions (e.g. System on Chip, GSM-SIM chips, new MIT low power encryption microchip) which Will drive up the consumer retail prices Cannot address certain security issues (for example: does a SIM chip stop Man in the Browser attacks today? Or does it protect against key-logging malware whereby the attacker can steal critical user authentication credentials to commit fraud? Do not protect against screen overlays and Remote Access Trojan’s. Do not provide for integrated solutions Will not resolve the legacy problem of billions of devices already in use Worldwide research demonstrate two prime consumer concerns in IoT: privacy and security. Solutions that ignore or fail to fully resolve these valid concerns will further slow down consumer adoption and reduce expected macro economic benefits DTS IoT B.V. – Strictly Confidential 8 DTS IoT: the first integrated approach IP Gateway & Home Area Network Cloud Service Provider IP Gateway DTS IoT Operating Device Software: User Application & Security DTS IoT B.V. – Strictly Confidential DTS IoT Software: Security & Intelligence 9 The DTS technology platform enables five “P’s” • Prohibit false or fraudulent commands to reach and direct internetcapable consumer devices • Preclude unauthorized invasion of in-house networks • Protect the (data)privacy of consumers • Preserve the security of all cryptographic keys, processes and algorithms necessary to safeguard system integrity and confidential communications • Prevent amassing of infected IoT devices to execute DDoS attacks damaging businesses and threatening critical infrastructures DTS IoT B.V. – Strictly Confidential 10 The DTS IP based architecture includes • All communication between the consumer operating device and the IoT Gateway are end to end = kernel to kernel encrypted and ‘commands’ are digitally signed • The operating device software is made tamperproof in use • No traditional burdens of key management anywhere • The user experience is not negatively impacted (the ‘Apple model’) • The IP Gateway device is loaded with intelligence to Automatically reset its password with a cryptographic random where ever possible to mitigate the risk of penetration by hackers Create and maintain a registry and a profile of each in-house connected consumer IoT device Manage and control active applications and services by device, specific user interaction with the device if required (e.g. medical devices) and the allowable behavior and (data) traffic of each device, e.g. in terms of its original configuration, port usage, data format, data frequency etc. Encrypt the data traffic to preserve confidentiality before releasing it to the internet, whenever required. DTS IoT B.V. – Strictly Confidential 11 DTS primary operating device side security layers • The device generated private key is protected by the DTS key splitting and binding technique, derived from proven security technology • • • Key binding is tied to local device metrics Only the DTS Kernel Driver is capable of reassembling the secret key The key splitting and binding is randomly arranged on each device • Randomization • • Operating devices will have different code layouts The builds will be randomized on our build server, thereby establishing diversity of the DTS Core. There will be no universal or homogenous DTS Core base in the field, so that • • • The development of a single targeted attack is impeded Hackers are forced to subvert each device one at a time Single targeted attacks must also remain unnoticed by the internet gateway unit!! • Software Integrity • • Our CCD (Caller Code Digest) layer secures calls between different trust zones Only calls from components signed by the private key of the Application owner can be accepted. Makes the DTS operating device effectively tamperproof (in use) DTS IoT shifts the hacker point of ROI to the distant future DTS IoT B.V. – Strictly Confidential 12 DTS IoT differentiators • The DTS IoT solution is software based • Is a structurally different approach to manage and secure the environment of internet-capable consumer devices and client – server environments • Realizes a seamless chain of trust between ‘operating’ devices, internet gateway units, in-house networks and connected IoT devices or between BYOD devices and (corporate) servers • Does not impact the user experience in any material way (works like a simple app; ‘drop down’ driven) • Is efficient and inexpensive to implement • Can be downloaded even over unprotected networks • Resolves both the large legacy problem and services future consumer IoT devices • Establishes secured ‘intelligence’ inside the home network and opens the door to machine learning capabilities in the internet gateway units • Stand alone technology platform, but can also complement other initiatives/technologies and we welcome opportunities to cooperate with third parties DTS IoT B.V. – Strictly Confidential 13 For discussion: Strategic applications of the DTS technology? Whereas consumers will immediately and significantly benefit from DTS IoT implementation, this technology can also prove valuable in other strategic arena’s Remote health monitoring and diagnostics Remote performance control and preventive maintenance of consumer devices and home appliances Innovative OEM consumer information and marketing tools Energy management of the home and other green applications. Facilitating a new wave of consumer artificial intelligence solutions DTS IoT B.V. – Strictly Confidential 15 Establish validity through multi-party Alpha product release trial • The most effective way forward is to demonstrate the validity of the technology platform through an extensive trial involving the Alpha product release in a joint effort between A dominant smartphone producer; for practical reasons we would prefer Apple. This way the DTS platform on the operating device side can be reduced to meaningful additions of well established mobile phone functionality A leading internet service provider, e.g. Deutsche Telecom or KPN A large scale supplier of modems/routers in Europe • This will require sufficient funding in support of positioning the DTS solution effectively as a pan-European initiative DTS IoT B.V. – Strictly Confidential 16 How to transform a business opportunity into a political priority? The DTS initiative needs to be closely linked to the Digital Economy We need an entree point in the Commission The Commission's support is required to engage Apple, a large European telecom/ internet provider and a large European producer of gateways We need funds for a trial in a real life setting DTS IoT B.V. – Strictly Confidential 17