The Internet of Things (IoT) revolution has entered the business world through wide-open doors. Smart cameras monitor our offices, sensors optimize energy consumption in buildings, access control systems manage entrances, and in industry, millions of IIoT (Industrial IoT) devices are driving the fourth industrial revolution. This network of interconnected “things” promises huge gains in productivity, automation and data collection. However, this same revolution, often carried out in haste and without adequate thought about security, has created a gigantic, heterogeneous and extremely dangerous attack surface.
Each of these small, often cheap and “smart” devices is in fact a small computer, often running outdated software, equipped with default passwords and lacking basic defense mechanisms. For cybercriminals, such an army of unsecured devices, connected directly to a company’s network, is like an invitation. The compromise of one inconspicuous IP camera can become a beachhead for an attack on the entire corporate infrastructure. Securing the IoT ecosystem is no longer a niche problem. It has become one of the biggest and most complex challenges for any IT and security department.
Shortcuts
- What are IoT devices and why do they pose a risk to businesses?
- What are the biggest cybersecurity risks associated with IoT in 2025?
- Why should IoT security be planned for at the design stage?
- What IoT security standards and certifications should enterprises follow?
- How to properly authenticate and authorize IoT devices on a corporate network?
- Why is encryption of communications crucial in IoT infrastructure?
- How to segment the network to protect IoT devices from attacks?
- What rules should be used to manage passwords and access to IoT devices?
- How to monitor network traffic and detect anomalies in IoT systems?
- Why are regular software updates critical to IoT security?
- How to secure IoT devices physically from unauthorized access?
- What Zero Trust solutions to implement in IoT architecture?
- How do you prepare your company for an IoT security audit?
- What best practices to implement when bringing new IoT devices online?
What are IoT devices and why do they pose a risk to businesses?
IoT (Internet of Things) devices are physical objects (“things”) equipped with sensors, software and other technologies that allow them to connect and exchange data with other devices and systems via the Internet or a local network. In an enterprise context, this includes a huge range of devices: from HVAC (heating, ventilation, air conditioning) and smart lighting systems, to surveillance cameras and access control systems, to specialized sensors in factories or medical devices in hospitals.
The risks they pose are multidimensional. First, they dramatically increase the attack surface. Each new device is a new potential entry point into the network. Second, they are often designed with a disregard for security (“insecure by design”). Manufacturers, competing on price and speed to market, often skimp on security, leaving default passwords and providing no update mechanisms. Third, they generate the problem of lack of visibility and management. IT departments often don’t even know how many and what IoT devices are running on their network. Finally, IoT compromise can lead to attacks with physical effects, such as tampering with building control systems or sabotage in industrial environments.
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What are the biggest cybersecurity risks associated with IoT in 2025?
In 2025, threats to IoT are already well understood and actively exploited by attackers. One of the biggest threats remains the use of weak, guessable or default credentials. This is still the easiest and most common way to take control of a device. Attacks that exploit known but unpatched vulnerabilities in the firmware of devices or in the communication protocols they use are also a huge problem. We are also seeing an increasing number of attacks on the supply chain, where malicious code is injected into devices as early as the manufacturing stage. Finally, compromised IoT devices are being massively incorporated into botnets (such as the notorious Mirai and its successors), which are then used to launch powerful DDoS (Distributed Denial of Service) attacks on other targets.
Why should IoT security be planned for at the design stage?
The “we’ll add security later” approach is a recipe for disaster when it comes to IoT devices. Due to their nature - they are often resource-constrained, massively deployed devices with a long life cycle - “patching” security after the fact is extremely difficult, costly and sometimes impossible. That’s why it’s absolutely crucial to implement “Security by Design” and “Privacy by Design” principles.
This means that security issues must be addressed at every stage of the product lifecycle - from initial conception, through hardware and software design, to production and maintenance. Threat modeling should be conducted as early as the design stage to identify potential attack vectors and build appropriate defense mechanisms into the architecture. This proactive approach is not only more effective, but is also becoming a firm legal requirement, imposed by upcoming regulations such as the EU’s Cyber Resilience Act (CRA).
What IoT security standards and certifications should enterprises follow?
The standards landscape for IoT is still crystallizing, but there are already several key frameworks to build on. At the European level, fundamental is the ETSI EN 303 645 standard, which defines the basic requirements for consumer IoT devices and is the basis for many national certification schemes. In the US, NIST publications such as NISTIR 8259 are key. For industrial IoT (IIoT), the most important standard is IEC 62443, which defines a comprehensive framework for the security of industrial control systems. The upcoming Cyber Resilience Act (CRA) will introduce mandatory requirements and CE marking for cybersecurity for almost all digital products in the EU, making it significantly easier to choose secure devices. When selecting a new device, always ask your supplier about its compliance with these standards.
How to properly authenticate and authorize IoT devices on a corporate network?
Authenticating millions of “headless” devices (with no user interface) is a huge challenge. Using simple, shared passwords is unacceptable. The most secure and scalable approach is public key infrastructure (PKI) and authentication based on unique digital certificates for each device. The 802.1X protocol, supported by most modern network switches and access points, allows a device’s certificate to be automatically verified before it even enters the network. After successful authentication, the device must be authenticated according to the Principle of Least Privilege. It should only have access to those resources on the network that it absolutely needs to operate.
Why is encryption of communications crucial in IoT infrastructure?
Many IoT devices and protocols, especially older ones, transmit data over the network in plain, unencrypted text. This means that anyone able to eavesdrop on network traffic can easily read the information being sent - whether it’s an image from a camera or a command sent to a controller. To make matters worse, they can also modify this communication by launching ** man-in-the-middle** attacks. That’s why it’s absolutely crucial that all communications, especially those taking place over wireless networks or the public Internet, be encrypted using strong, standard protocols such as TLS (Transport Layer Security) for TCP/IP-based communications, or its equivalent for UDP - DTLS (Datagram TLS).
How to segment the network to protect IoT devices from attacks?
This is the most important single defense mechanism that can be implemented. Network segmentation involves logically dividing a company’s network into smaller, isolated zones and tightly controlling traffic between them with firewalls. IoT devices should never, under any circumstances, be on the same network as critical company servers or employee workstations. A dedicated, separate network segment (e.g. VLAN) should be created for them, which is treated as a “dirty” or untrusted zone. Traffic from this segment to the corporate network should be blocked by default, except for absolutely necessary, well-defined connections (e.g. from a camera to a video recording server on a specific port). Such isolation ensures that even if an attacker compromises an IoT device, his attack will be “trapped” in this one small segment, with no possibility of spreading to the rest of the company.
What rules should be used to manage passwords and access to IoT devices?
The plague of default passwords is the biggest and easiest to eliminate threat in the IoT world. The absolute, non-negotiable number one rule is to change all default credentials on every new device when it is first launched. These passwords should be unique for each device and appropriately complex. Managing thousands of unique passwords is impossible manually, so implement a centralized system to manage credentials or, better yet, where possible, eliminate passwords altogether in favor of certificate-based authentication. Administrative access to devices should be strictly limited and monitored.
How to monitor network traffic and detect anomalies in IoT systems?
Since EDR agents cannot be installed on IoT devices, the only way to monitor their behavior is to analyze their network traffic. Traditional signature-based IDS systems are often ineffective here. The best solution is passive NDR (Network Detection and Response) platforms, which use machine learning to detect anomalies. Such a tool, connected to a segment of an IoT network, first “learns” what the normal communication pattern looks like for each type of device (what servers, on what ports, and how often does the IP camera talk?). Then, in real time, it alerts you to any deviation from that norm - for example, when the camera suddenly tries to connect to an unknown server on the Internet or starts scanning other devices on the network. This is an extremely effective way to detect compromises.
Why are regular software updates critical to IoT security?
The firmware of IoT devices, like any other software, contains bugs and vulnerabilities. The difference here is that the update process is much more difficult. Many low-cost devices do not have an update mechanism at all. For those that do, updates must be provided by the manufacturer. The lack of regular security updates makes a fleet of IoT devices increasingly vulnerable to attacks that exploit known vulnerabilities over time. Therefore, from the stage of selecting a vendor, it is important to verify what its support policy is and how long it commits to providing security patches. It is also essential for a company to implement a formal vulnerability management process for IoT, which includes monitoring published vulnerabilities and planning the update process.
How to secure IoT devices physically from unauthorized access?
The physical dimension of security should not be forgotten. Many IoT devices, such as cameras, sensors and control panels, are installed in publicly accessible areas, leaving them vulnerable to physical tampering. An attacker with physical access can try to connect to debug ports (JTAG, UART) to read firmware, reset the device to factory settings, or carry out other attacks. Therefore, whenever possible, devices should be installed in hard-to-reach locations or in secure, tamper-resistant enclosures. Also consider physically disabling or pouring epoxy over unused service ports on the motherboard.
What Zero Trust solutions to implement in IoT architecture?
Zero Trust architecture is an ideal model for securing IoT ecosystems because it inherently treats every device as potentially untrusted. The key technology for implementing Zero Trust for IoT is NAC (Network Access Control). The NAC system, integrated into the network, acts as a gatekeeper that intercepts any new device attempting to connect. It first identifies and profiles the device and then, based on its identity and defined policy, automatically places it in the appropriate isolated network segment. NAC is the mechanism that automates and enforces the rigorous segmentation that is the foundation of Zero Trust in IoT.
How do you prepare your company for an IoT security audit?
Preparing for an audit requires a structured approach. Start by creating a complete and detailed inventory of all IoT devices operating in the company. A risk assessment should be conducted and documented for each type of device. It is crucial to have architectural documentation, including detailed network diagrams that clearly show how segmentation is implemented and where the control points are located. You should also have policies and procedures in place for the lifecycle of IoT devices - from secure deployment to vulnerability management to disposal. Finally, be prepared to provide logs and evidence from monitoring systems that show that policies are actually being enforced.
What best practices to implement when bringing new IoT devices online?
Introducing a new IoT device to a company’s network should never be an ad-hoc activity. A formal, repeatable onboarding process should be implemented that minimizes risk. This process must include a security due diligence assessment of the product itself and its vendor before making a purchase. Once purchased, the device must go through an initial hardening process in an isolated lab environment before it is connected to the production network. All default passwords must be changed, unused services must be disabled and firmware must be updated to the latest version. Only after it has been “hardened” and registered in the inventory system can the device be connected to the actual isolated segment of the production network and subjected to continuous monitoring.
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