IoT Security Challenges & How to Protect Your Connected Devices

IoT Security Challenges & How to Protect Your Connected Devices
March 31 2025

The connected IoT environment has changed the way industries operate worldwide. Whether it’s more advanced manufacturing techniques or real-time health tracking, IoT convergence boosts productivity and creativity. However, it also presents serious security concerns. With the increasing use of IoT in both business and consumer settings, it is becoming more crucial for businesses to consider IoT security, as they now have greater access to sensitive data and can affect critical devices.

As both the number and complexity of connected devices continues to grow, it will become more challenging for businesses to secure their devices and prevent cyber-attacks. IoT devices are vulnerable and provide an open platform for security breaches, making them attractive targets for cybercriminals.

Now is the ideal time to assess the security measures for your home’s smart devices and enhance the reliability of your home network. From smart thermostats to connected lightbulbs, every IoT device integrated into your network can become a gateway for cyber-attacks. Growing threats, outdated systems, and complex compliance requirements create obstacles for cybersecurity professionals, CISOs, and security teams responsible for protecting critical infrastructure.

In this article, we will explore the most common IoT security challenges​ and how you can protect yourself and your business from them.

What Does IoT Security Mean?

IoT security refers to the process of protecting devices connected to the internet from potential dangers and threats. IoT, or the “Internet of Things,” encompasses items used in daily life, such as smart home appliances, wearable fitness trackers, smart thermostats, and smart refrigerators. These devices can connect to their counterparts and share information over the internet.

As these devices collect, store, and transfer data, they become vulnerable to hacker attacks if not properly secured. IoT security involves ensuring that data is protected and that devices are shielded from cyber-attacks. This includes encrypting data, using strong passwords, and regularly updating software to fix security vulnerabilities.

For example, if an attacker hacks into a smart camera or thermostat, they might use the device for malicious purposes or access personal data. Securing IoT devices helps protect privacy and prevents devices from being used to harm others. IoT security also includes safeguarding the networks that connect these devices to ensure they cannot be accessed or attacked from outside.

It is crucial for both individuals and businesses to ensure their IoT devices are secure to avoid risks such as security breaches or identity theft. IoT security ensures that internet-connected devices are safe, allowing users to enjoy their benefits without worrying about security concerns.

Understanding IoT Security Requirements

IoT security requires a tailored approach that addresses the specific challenges of industries, businesses, and networks. A variety of security considerations must be taken into account, including the need to implement administrative oversight, perform regular updates and patches, enforce strong passwords, and prioritize Wi-Fi security.

Monitoring the behavior of your network and devices for any anomalies is an effective way to detect malware triggered by IoT vulnerabilities. Another best practice is network segmentation, where IoT devices are connected to separate networks, isolating vulnerable devices from potential threats and preventing malware from spreading across the entire enterprise. Utilizing zero-trust access for networks provides an additional layer of protection.

Given the configuration limitations of many IoT devices, it is often better to secure your IoT environment and cope up with IoT security challenges​ that provide multiple layers of protection, including endpoint encryption, rather than focusing solely on securing IoT software and firmware.

When IoT and cloud systems converge, it’s important to secure the cloud by using cloud-based security tools that offer processing capabilities for edge devices. IoT devices use various protocols, from network protocols and internet protocols to Bluetooth and other communication standards. 

Understanding the protocols used by devices can help reduce security risks. Companies that rely on GPS for critical business functions need to be aware of the potential security risks associated with GPS-connected devices, such as spoofed or blocked GPS signals.

Top IoT Security Challenges To Know

IoT devices come with specific security concerns, meaning organizations must manage them in a particular way. Here are the most significant IoT security challenges you should be aware of.

Weak Authentication Systems

Using weak or default passwords in IoT devices provides a great opportunity for unauthorized users to gain access. Many manufacturers provide default passwords like “admin” or “12345.” These default passwords are often listed in device manuals and on manufacturers’ websites, making them easy targets for attackers. Even with a complex password, devices that require only a single factor of authentication remain susceptible to hacking. This remains one of the primary attack methods used by many criminals.

Secure authentication is multi-layered. Default passwords must be changed before implementation, and secure password guidelines must be followed. Companies should use multi-factor authentication whenever possible, typically using tokens or apps for authentication. Certificate-based authentication is essential for device-to-device communication, and automated systems should be robust enough to detect and prevent brute force login attempts.

Outdated Firmware and Software

Many IoT devices have outdated firmware versions with known vulnerabilities. Some manufacturers take days to release security patches, while others completely abandon old models. Security vulnerabilities in older software can attract hackers, giving them access to devices or even enabling them to control them. This becomes more complicated when organizations use large numbers of IoT devices with various firmware versions. Updating these devices can be time-consuming and tedious.

The deployment and monitoring of software updates are essential for effective firmware management. Companies must automate firmware management, track versions, and create a regular update schedule with clear maintenance times. Each patch should be tested in a stable environment before being released. Maintaining an accurate inventory of devices helps with tracking firmware versions across the organization.

Rising Ransomware and Malware Attacks

Malware and ransomware attacks are increasing as cybercriminals continue to target IT, OT, and IoT technologies. These attacks can steal sensitive information, disrupt production, and exploit system vulnerabilities. The consequences can include significant financial losses and downtime. To defend against these threats, organizations should take several actions.

First, it’s crucial to install endpoint detection devices. Equipment such as HMIs and historians often run on operating systems that support the latest security tools. Additionally, regular offline backups are vital. In the event of a ransomware attack, recovery can proceed without being affected. 

Leveraging AI to detect threats can identify unusual behaviors that might indicate a ransomware attack, allowing for quick response. Automating protocols to contain the threat is another effective method. If a system becomes infected, it’s essential to isolate it to prevent the malware from spreading throughout the network.

Unencrypted Data Transmission

Many IoT devices transmit sensitive information via unencrypted data transmissions, making it easy for attackers to intercept and understand the data. This includes everything from sensor readings to command signals and user data transmitted between devices and central systems. 

Man-in-the-middle attacks, network sniffing, and even compromises to network infrastructure allow attackers to steal unencrypted data. This IoT security issue becomes more critical when devices transmit data over public or remote network infrastructures, where intermediaries can easily examine the data.

It is crucial for companies to ensure that encryption is applied to all data transmissions. Organizations must employ standard end-to-end encryption protocols and secure protocols like TLS 1.3 or greater to protect all communication. Regular renewal of certificates and encryption keys maintains high security standards, while forward secrecy ensures that past communications are protected from future breaches. Device pairs should securely exchange encryption keys to protect the data.

Insufficient Access Controls

Automated IoT devices may lack adequate access control measures, which could enable unauthorised users to gain access to device functions and data. This issue applies to both remote and physical interfaces. If controls are insufficient, attackers can exploit default permissions, gain higher access, or bypass access restrictions. Hackers could manipulate sensitive information or alter device settings if they have physical access to the device.

To effectively manage access control, businesses need multiple layers of security to address IoT security challenges. It is essential to define what users can and cannot do based on their roles within the organization’s role-based access control system. Logging access attempts, including alerts, can help prevent unauthorized access. Physical security also plays a role in protecting device hardware from being tampered with.

Insecure Network Services

Unnecessary network services on IoT devices can create vulnerabilities that attackers can exploit. Many of these services have excessive permissions and default configurations. These excess services can expose devices to attacks and provide unauthorized access. Default configurations may include test or debugging features that are inappropriate for use in production environments.

It is essential for companies to monitor and regulate network security. All non-essential services should be disabled, and the network should be segmented to isolate IoT devices. Dedicated firewalls tailored to IoT traffic patterns provide additional protection.

Supply Chain Vulnerabilities

IoT devices can be vulnerable to security weaknesses throughout the supply chain, from production to deployment. Malicious firmware can be introduced during production. Most device security issues stem from vulnerabilities in third-party software libraries and components. Detailed descriptions of these components and their origins can provide enough information for a thorough security analysis.

Organizations must follow precise processes to control and monitor their vendors’ secure supply chain management. Companies should verify the security of each IoT component and the device firmware before installation. Contracts must include security specifications (such as component quality or assurance levels). A detailed document outlining how each device’s components work is necessary.

Lack Of Security Monitoring

Most IoT deployments lack security monitoring tools. While they generate a large amount of operational data, they often fail to adequately record security incidents. Without proper monitoring features, security professionals are unable to detect active threats or security breaches before they reach a critical point. Centralized monitoring becomes difficult and resource-intensive because IoT networks are often widely dispersed.

An effective logging and analysis system is essential for security monitoring. Logs from devices should be consolidated and analyzed by centralized security information and event management (SIEM) systems. 

Real-time monitoring enables rapid detection of security issues, while automated alerts inform the security team of potential incidents. Regular log reviews can help identify patterns that may indicate security problems.

Insufficient Incident Response Planning

Most organizations lack an emergency response strategy. IoT security risks from devices are frequent and well-documented, but security professionals often struggle to identify and mitigate threats to target devices quickly. Current emergency response protocols are not tailored to the unique challenges of IoT environments, such as limited device capabilities and distributed deployments.

Incident response requires a detailed strategy and periodic testing. Organizations must incorporate various methods for handling different types of IoT security incidents. Teams should be trained on potential breach scenarios, and incident simulation exercises should assess the team’s ability to respond.

Documentation must include up-to-date information on devices, their configurations, and recovery procedures. Communication plans should be in place to alert the entire team in the event of an incident.

Poor Device Management

Many organizations do not manage IoT devices in the same way they manage other devices, such as laptops and mobile phones. Large enterprises often lack comprehensive inventories of devices, making it difficult to manage security. Many organizations do not have control over the devices connected to their networks or the IoT security techniques they employ. Remote management functions often have limited security features, which can increase the risk of attacks.

Effective device management involves maintaining an inventory and controlling access in an organized manner. Every IoT device should be monitored by an asset management program that tracks it throughout its lifecycle. 

Unauthorized devices should be detected by regularly scanning the network, while configuration management ensures that all devices are running the same security settings. Remote management systems should implement strong encryption and access controls.

IoT Security Challenges By Industries

IoT security issues vary by industry, but each sector has its own unique set of risks due to the widespread and increasing use of IoT connected devices. By addressing these IoT security challenges, businesses can benefit from the effectiveness and ease of connectivity while reducing risk.

Healthcare

In the healthcare field, many IoT devices are used, including smart medical equipment and wearable devices that track patients and collect medical data at a moment’s notice. These devices help physicians make more informed decisions and provide faster treatment. However, they can also become targets for hackers. In the event of a security breach, sensitive patient information, such as medical histories, test results, or even personal data, could be exposed.

Such breaches could result in violations of privacy laws like HIPAA (Health Insurance Portability and Accountability Act), potentially disrupting critical healthcare operations. To ensure the security of this data, it is crucial to use secure encryption and proper device management. 

This means ensuring information is secured during transmission and that authorised users can only access it. Regular software updates and strong device passwords are essential steps to safeguard confidential information and maintain security.

Manufacturing

In the manufacturing industry, IoT devices are used to connect and control equipment, helping factories operate more efficiently. These devices monitor machinery, record production, and even determine when machines may require maintenance. If security measures are not in place, attackers could disrupt production, steal crucial data, or even damage expensive equipment.

Cybercriminals, for example, could shut down machinery, causing a production stoppage that could lead to significant economic losses. Additionally, intellectual property, such as proprietary manufacturing techniques, could be stolen. To protect against these risks, companies must conduct vulnerability tests to easily identify weaknesses in their security systems. 

They can also employ network segmentation, which divides the network into sections so that if one part is attacked, the rest of the network remains secure. By securing IoT equipment and networks, companies can protect their machinery and valuable information from hackers.

Finance

Financial institutions also use IoT devices in various ways. For example, ATMs are connected to the internet to facilitate transactions, while fraud detection systems use IoT devices to track suspicious activity. Smart contracts, which automatically perform transactions when certain conditions are met, are also powered by IoT devices.

While these technologies can improve the efficiency of financial transactions, they also introduce new security risks. If security measures are insufficient, hackers could gain unauthorized access to the financial system, steal funds, or compromise sensitive financial information. The result could be substantial financial loss, legal issues, and a loss of trust. To prevent such problems, financial institutions must implement robust security measures.

This should include monitoring devices for suspicious activities, securing networks with encryption, and utilizing advanced techniques to detect fraud or unauthorized access. By securing IoT devices, banks can protect their clients’ funds and personal information.

Best Practices For Securing IoT Devices

It is crucial to implement an organized approach to applying the most well-known security practices to safeguard IoT devices. This will help companies ensure the security of their IoT infrastructure while also meeting operational efficiency requirements.

Implement Secure Authentication and Access Control

Access control as well as strong authentication mechanisms are essential for IoT security. Multi-factor authentication (MFA) and biometric authentication can significantly improve security by making sure that only authorised devices and users can access the network. 

Role-Based Access Control (RBAC) further restricts access based on the user roles, which reduces the risk of unauthorized access. Effective authentication strategies, such as MFA, are vital for protecting IoT devices. Establishing effective access control guidelines reduces the risk of data breaches and helps safeguard sensitive information.

Regular Firmware and Software Updates

Ensuring that IoT device firmware and software are up to date is very important to avoid any security vulnerabilities. Automated update processes can ensure that devices are running the latest, most secure versions of their software. 

This proactive approach can help prevent numerous security problems before they become serious threats. Regular patches and updates are essential for maintaining the security of IoT devices. Automated updates reduce the risk of devices running outdated or vulnerable software.

Network Security Implementation

Standard IoT security​ measures are insufficient to protect IoT devices. IoT devices require tailored network security. Network segmentation helps separate IoT devices from critical enterprise systems, reducing the chances of a security breach. 

Monitoring systems track device activity and can identify traffic patterns which may indicate a security issue. Regardless of the platform, companies must ensure secure VPN connections for remote device access and avoid connecting additional IoT devices to the network whenever possible.

Intrusion Detection Systems (IDS)

Intrusion Detection Systems (IDS) are vital for protecting against cyberattacks. By continuously monitoring network activity and device behavior, IDS can detect unusual patterns that may indicate a security breach. Real-time alerts enable a quick response, minimizing potential damage.

Given that the top security risks to IoT include malware (49%), human error (39%), and DDoS attacks (22%), an effective IDS is essential to secure IoT environments from these threats. IDS systems are crucial for the real-time detection of threats and prompt responses within IoT environments. Continuous monitoring greatly helps in identifying and addressing security issues swiftly.

Security Monitoring and Response

Regular security monitoring is essential for detecting IoT security problems and enabling rapid action. Companies should implement centralized logging to collect security-related events from all IoT devices. 

Security teams need methods for incident response that are tailored to the specific IoT ecosystem they operate in. Monitoring systems should track network devices’ behavior, traffic patterns, and user activity to detect potential security issues. Regular security monitoring allows companies to identify weaknesses before hackers can exploit them.

Adopt Secure Password Practices

Insecure password practices remain a major cause of IoT device attacks. Ensuring strong password security is crucial to securing your IoT devices’ endpoints. Many IoT devices come with weak preset passwords that are easily found online. 

Once the device is connected to the network, it is recommended to replace the default password with a secure one. The new password should be difficult to crack, specific to each device, and compliant with the IT security department’s password policies and management procedures.

Actively Monitor IoT Devices at All Times

Monitoring, reporting, and alerting are essential for managing IoT risks. Traditional endpoint security tools often rely on software that IoT devices are not designed to use, making conventional solutions inadequate for protecting IoT assets. 

A more effective approach is needed. Install a real-time monitoring system that continuously tracks the activity of all internet-connected IoT devices. This system should seamlessly integrate with your overall security strategy and next-generation firewall.

Secure Boot and Storage Mechanisms

Secure boot procedures ensure that only firmware with a valid certificate can run on IoT devices, protecting against unauthorized or altered firmware. Encrypting data on devices helps protect sensitive information from unauthorized access. It’s important to consider not only the safety of information at rest (stored on devices and servers) but also data in motion (transmitted through the internet). 

Secure encryption during transfer is crucial to prevent data leaks and ensure the security of sensitive data throughout its entire lifecycle. Secure boot mechanisms protect IoT devices from firmware-level hacks, while data encryption is essential for safeguarding the security and integrity of stored data.

Vendor Risk Management

Assessing and managing the security policies of third-party vendors is crucial to ensuring the security of the IoT ecosystem. It is important to ensure that vendors follow strict security standards and promptly address any vulnerabilities in their products. 

Vendor risk management helps reduce vulnerabilities in the supply chain and ensures that security policies are consistent across different parts of the IoT ecosystem. Continuous vendor assessments help prevent security breaches originating from external sources.

Security Awareness and Training

Educating employees about IoT security best practices and potential security threats is essential for creating a secure environment. Regular training courses help employees recognize and respond to security events, reducing the risk of human error. Security awareness and training programs are effective in minimizing the threat of insider threats and human mistakes. An educated workforce is a key component of an effective IoT security strategy.

Conclusion

As organizations deploy an increasing number of connected devices throughout their businesses, the need for constant attention and effective monitoring of IoT security is more urgent than ever. Robust and effective security measures are required to combat the rising number of threats targeting all devices in the IoT network, starting from device configuration to automated monitoring systems that can detect and respond to any endpoint incidents.

To minimize IoT security challenges, businesses must ensure their security procedures are up-to-date, with rapid patching and the use of strong security systems. With the right security practices and appropriate tools, companies can fully leverage IoT technology while minimizing security risks.

FAQs

Why is IoT security vital?

IoT security is essential to protect against data breaches, as IoT devices typically lack integrated security features. These devices are not detected by traditional cybersecurity systems, as they connect to networks and transmit unencrypted data over the internet.

What are the most significant cybersecurity issues in IoT settings?

The most significant challenges include the expansion of attacks, outdated OT security vulnerabilities, inadequate security measures, unreliable segmentation, the threat of ransomware, and supply chain risks.

How are older OT systems at risk of cyberattacks?

Older OT systems often lack modern security tools, such as encryption and authentication, making them vulnerable targets for malware, ransomware, and unauthorized access.

What happens if we do not secure IoT devices?

Security issues with IoT devices can lead to data breaches, device malfunctions, and network security vulnerabilities. Hackers could steal personal and confidential information, alter device functions, or use compromised devices to access unprotected systems.