5 IoT security risks and challenges and how to handle them

Connected devices can create huge opportunities for businesses, from automating processes and monitoring equipment to collecting real-time operational data. But every connected device can also introduce another potential entry point into a system.

IoT security risks and challenges can emerge across devices, networks, software and the data moving between them. Weak authentication, outdated firmware, insecure connections and poor visibility can all leave IoT systems vulnerable to attacks.

In this article, we'll look at five common IoT security challenges, the risks they create and practical steps organisations can take to build a stronger IoT security strategy.

Why does IoT security matter?

An IoT system can involve large numbers of connected devices communicating across networks, cloud platforms, edge infrastructure and other business systems.

That connectivity creates value, but it also increases the potential attack surface. If one poorly secured device provides unauthorised access to an IoT network, an attacker may be able to access sensitive data, disrupt operations or attempt to move into other connected systems.

Security therefore needs to be considered across the entire IoT architecture, from physical access to individual devices through to authentication, network security, software updates and data protection.

The Importance of IoT Security 

IoT security breaches are never something to be taken lightly. 

Nowadays, almost anything can be automated and as a wider range of IoT devices are made available, the risk of security threats intensifies. 

The surge in demand for these devices further amplifies the issue. Given that businesses are starting to rely more heavily on IoT, safeguarding IoT systems has become paramount.

What are The Consequences of IoT Security Breaches?

When IoT security breaches happen, the consequences can be catastrophic. System and data violations can result in operational disruptions, huge legal fees, reputational damage, and in the worst-case scenario, even put lives in danger. 

Back in March 2021, Verkada, a company specialising in video security and physical access control systems were targeted by a group of hackers that gained access to their customer surveillance cameras. 

These hackers were able to access camera feeds from approximately 150,000 security cameras housed in hospitals, schools, and jails, as well as companies such as Tesla and Cloudflare. In total, 97 customers had their cameras accessed, allowing the hackers to view video footage (some of which had facial recognition) and listen to audio. 

Despite a number of similar stories circulating online and in the news over the last decade, many companies are still failing to protect their systems. Don’t let your business be one of them!

Common Issues That Affect IoT Cyber Security

1.Weak authentication and default credentials

Weak authentication remains one of the most common security risks for connected devices. Default passwords, shared credentials, hardcoded credentials and easily guessed passwords can all make it easier for attackers to gain access to an IoT device or system.

The risk becomes particularly serious when the same credentials are reused across multiple devices. Compromising one password could potentially give an attacker access to a much larger part of the IoT environment.

Poorly secured connected devices can also be recruited into botnets and used to support malicious activity, including distributed denial of service (DDoS) attacks.

How to reduce the risk:

• Change default credentials before devices are deployed

• Avoid hardcoded or shared passwords wherever possible

• Use strong, unique credentials

• Apply multi-factor authentication where supported and appropriate

• Limit access according to what individual users and systems actually need

• Securely manage credentials throughout the device lifecycle

Strong authentication and appropriate access controls should be considered from the beginning rather than added after devices have already been deployed.

2.Outdated software and firmware

IoT devices can remain in operation for many years, making ongoing software and firmware updates an important part of their security.

When vulnerabilities are discovered, manufacturers may release patches or firmware updates to address them. Devices that aren't updated can remain exposed even when a known vulnerability already has a fix available.

This becomes particularly challenging when organisations operate large numbers of devices across multiple sites or environments.

How to reduce the risk:

• Maintain an accurate inventory of connected devices

• Understand how and when each device receives security updates

• Apply security patches and firmware updates in a controlled and timely way

• Monitor manufacturer support and end-of-life dates

• Replace devices that can no longer receive appropriate security updates

Update management should form part of the wider security strategy for the full lifecycle of an IoT device, not just its initial deployment.

3.Insecure networks

Connecting an IoT device to a network creates another potential route into the wider system. Unnecessary open ports, exposed services and poorly configured network connections can all leave devices vulnerable to attacks.

A compromised device can become particularly dangerous if an attacker is then able to move freely from the IoT network into other business-critical systems.

How to reduce the risk:

Network segmentation can help contain security incidents by separating IoT devices from other systems and dividing infrastructure into smaller network zones.

Organisations should also:

• Disable unnecessary ports and services

• Use firewalls and security gateways where appropriate

• Apply appropriate access controls between network segments

• Monitor network traffic for unusual activity

• Encrypt communications between devices and other systems

The aim is to ensure that compromising one connected device doesn't automatically provide access to everything else.

4.Poor protection of data

IoT devices can collect and transmit large amounts of information, from operational and environmental data to potentially sensitive information about customers, employees or physical environments.

If that data isn't appropriately protected, an attacker who gains access to a device or network may be able to intercept or manipulate it.

Encryption can help protect data both while it is being transmitted and, where appropriate, while it is stored.

How to reduce the risk:

• Encrypt sensitive data in transit

• Protect sensitive stored data appropriately

• Use secure communication protocols

• Manage encryption keys securely

• Limit data access to authorised users and systems

• Avoid collecting or retaining information that isn't actually required

Data security should be considered throughout the full journey of information across an IoT system rather than only at the individual device.

5.Poor device visibility and monitoring

You can't effectively secure devices you don't know exist.

As IoT estates grow, organisations can lose visibility over which devices are connected, where they are located, what software they're running and whether they're behaving normally.

This makes it harder to identify vulnerabilities, detect compromised devices or respond quickly when something goes wrong.

How to reduce the risk:

Maintain an up-to-date inventory of IoT devices and monitor their status throughout their lifecycle.

Where appropriate, monitoring should also establish normal device behaviour so unusual activity can be identified. Unexpected network traffic, changes in communication patterns or attempts to access unusual systems could indicate that a device has been compromised.

Devices should also be physically secured where possible. If attackers can gain physical access to hardware, they may be able to tamper with the device, extract information or bypass other security controls.

Effective monitoring therefore needs to consider both digital and physical access to connected devices.

How do you build an IoT security strategy?

IoT security shouldn't be treated as a checklist completed when a device is first connected. Devices, software, networks and threats change throughout the lifetime of a system.

A strong IoT security strategy should consider security from the earliest stages of architecture and development through to deployment, monitoring, maintenance and eventual decommissioning.

That means understanding:

• What devices are connected and what they can access

• What data is being collected and where it moves

• How users, devices and systems authenticate

• How access controls are applied

• How vulnerabilities and firmware updates will be managed

• How network segmentation can limit the impact of a compromised device

• How unusual device behaviour will be detected

• Who is responsible for responding when a security incident occurs

For organisations building complex IoT systems, these decisions are much easier to address during architecture and development than after hundreds or thousands of devices have already been deployed.

Building a secure IoT system?

Security is one part of designing an IoT system that can operate reliably at scale. Device architecture, connectivity, edge processing, data, integrations and ongoing management all need to work together.

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