The recent distributed denial of service attack on Domain NameServer provider DynInc. illustrated just how vulnerable home networks andsmart devices are.

While they provide numerous benefits to consumers, they presentsome very real risks, most of which can be managed with some basicsteps.

Just like they protect their work networks with software andpasswords, consumers need to transfer those same online practicesto their homes to protect devices such as smart televisions, babymonitors, refrigerators and thermostats from being hacked.

"Many devices are built for speed and ease of deployment,"explained Eric Cernak, Munich Re U.S. cyber practices lead, "and alot of times, especially with older devices, they are launched withdefault codes, passwords and user names that aren't changed,exposing your IP addresses to the internet where hackers can findthem."

The danger arises when hackers exploit some of these securityflaws and use them to breach home networks, computers, and smartand mobile devices.

"Once cyber criminals have access, they can steal personal andfinancial information, hold computer files for ransom, and hijackanything from webcams and thermostats to smart TVs," Cernaksaid.

And, with 80 percent of consumers using home networks, the riskof a cyber attack is high.

It is possible that a personal device could be commandeered by ahacker and you would never realize it. Unlike a computer, where youwould notice that it was running slower or access to your emailmight be locked, it is more difficult to tell if someone is nosingaround your refrigerator or accessing the baby monitor.

"As you see other connected devices on the network, you mightnotice different things," said Cernak, "like the light on yourcamera is on when you're not broadcasting. Some devices controlyour physical environment like the connected thermostat that startsheating when you haven't turned the heat on, or the refrigeratorstarts to thaw out and you're not doing it — that could be a sign.The first indication that something is awry is that it's notoperating the way it should be."

Related: Hackers are targeting your smartdevices

Smart televisions have very real vulnerabilities and allowhackers and others access into a home without anyone being awarethat they are being watched. (Photo: iStock)

How do hackers find your network?

Most hackers aren't being discriminate when they look fornetworks or devices to hack, said Cernak. "They are just lookingfor sheer volume for DNS attacks. They have tools that will allowthem to search the internet and they are just looking for massquantities at this point."

There are a variety of software programs that will allow hackersto find devices. "Cryptoware scans and looks for massvulnerabilities," he added. Most personal devices are just likemini computers so a lot of the same safety mechanisms you wouldapply to your computer also apply to your phone and otherelectronics.

The majority of attacks still occur through more traditionalportals such as home Wi-Fi systems or clicking on the wrong link inan email, although now consumers use multiple devices to access theWeb.

Some devices such as smart TVs provide an opportunity forambient listening so a hacker could hear what's going on in yourhouse. It is possible to turn off this option, which frequentlyoperates when the TV is turned on. Since the camera on the TV couldbe activated, this also becomes an invasion of privacy issue.

"It's important for you to understand the risks you are assumingby deploying this type of technology," said Cernak. "Most peoplewould be appalled at the information that is collected and bywhom."

Recently, Hartford Steam Boiler Inspection and Insurance Co.,which is part of Munich Re, and Chicago-based technology firmPrescient Solutions, hosted a "Home Hacker Lab" that demonstratedhow cyber criminals access and use home networks and personaldevices as part of a cyber crime.

Here are 10 tips to help homeowners keep their home systemssafe:

Related: Friday's cyber attacks a 'wake-up call' forinsurers and public alike

(Photo: Shutterstock) 

1. Don't forget thoseupdates

It's important to make sure that appliances, phones and otherelectronics have the latest updates and security patches, sincethey frequently fix vulnerabilities that have been discovered sincethe device was issued.

(Photo: Shutterstock) 

2.  Keep socialmedia and financial activity separate

Clicking on the wrong link can allow a Trojan or other virus toenter your computer. Consider using one computer just for financialtransactions like online banking and another for social media,email and other online activities.

Secure routers and other devices added to a home network toprevent unauthorized intrusions. (Photo: iStock)

3. Yes, securitymatters

Just like you would protect your network at work, the same basiccomputer hygiene also applies to your home. "If you're using WiFi,don't broadcast the network name," cautioned Cernak. Make sure tochange any default settings, names or passwords when installing newsmart devices. Install new devices behind a firewall rather thanlinking them through a home computer.

The risks have also changed with technology. "Instead of hackerstaking over and encrypting your computer, they can take over yourthermostat and turn it down in the dead of winter and hold it forransom until you pay the ransom," he explained. 

Related: How to respond to cyber extortiondemands

(Photo: iStock) 

4. Set upauthentication

Many online accounts from your email to financial organizationsoffer two-factor authentication — a password and a codesent to a mobile device or email to verify who is accessing theaccount. Setting up dual authentication provides an added layer ofprotection for your accounts. Make sure that passwords are complex(not birthdays or children's names), difficult for someone to guessand include a combination of letters, numbers and symbols.

(Photo: iStock) 

5. Secure yoursmartphone

We do everything on our smartphones from online banking andshopping to buying movie tickets and more. If you have notpassword-protected your phone, set it up immediately. Many phonesalso offer a fingerprint access option as well.

Why is this important? Most smart devices have some sort ofsmartphone app that allows you to access it from your phone, makingit a critical entry point to your house for anyone who commandeersyour phone.

Related: What business owners need to know about cyber riskfrom wearable devices

(Photo: iStock)

6. Make smart apppurchases

Cernak recommends only purchasing apps from recognized appstores such as Google, because those purchased from third partiesmay not have the same level of testing for flaws.

Also make sure to read the privacy policies so you know who hasaccess to your information, what information is being accessed andwho it will be shared with. Beware of downloading any apps thatprompt you to do a quick download, because these versions mayinclude malicious code or security flaws that would allow hackersaccess to your device.

(Photo: iStock) 

7.  Turn off theBluetooth option

When you're not using the Bluetooth feature on a device, turn itoff to prevent any ambient listening or access by unauthorizedpersons. Most mobile phones, tablets and other items offer thistype of functionality. Devices such as baby monitors and smartspeakers can then be hacked through the Bluetooth function.

(Photo: iStock) 

8. Purchase newdevices

"When buying IoT devices, purchase those that are unopened andunreturned from retailers," cautioned, Cernak. Some people will buydevices, infect them with a security flaw or malicious code andthen return them to the retailer. "Look at how the device is made,designed and how it is used, and change the passwords when youconnect them," he added.

(Photo: iStock) 

9. Wipe yourinformation

If you're purchasing a new device and disposing of an old one,wipe any data and reset it back to the factory default settings tomake sure any personal information is removed and inaccessible tosomeone who might gain access to the device.

(Photo: iStock) 

10. Check your insurancepolicies

In the event of a breach, Cernak recommends checking yourhomeowners' or identity theft insurance policies or contacting youragent since the policies may help provide access to forensic andother experts who can help with the aftermath. In addition, somelevel of indemnification coverage may be available for identitytheft or other effects from the breach.

Read on to see what to do if you are the victim of ahacker …

Once a hacker accesses a home network, they may be able tocontrol a full range of devices that manage the home's environment.(Photo: iStock)

What to do after the cyber attack

If one or more of your devices are hacked, Cernak says todisconnect it immediately without altering any settings or runningany scans. "Find a professional forensics firm who can helpidentify how far the attack went and what was impacted," headvised. "You want to contain and remediate the situation withoutdestroying the ability for a specialist to follow whathappened."

Who to report the breach to depends on the type of incidentinvolved. In the case of identity theft, it may be necessary tofile a police report and notify all financial institutions such asbanks and credit card companies.

The bottom line, added Cernak, is to be aware of what you'redoing. "Understand the risks associated with deploying thistechnology and treat these devices like you would yourcomputer."

Related:

Should you call in the feds after a cyberbreach?

5 horrifying smart home hacks (withvideo!)