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What are IoT Devices, and the Security Threats That They Pose?

Internet of Things (IoT) Devices and Why Their Security Matters

The Internet of Things (IoT) has become woven into our daily lives and business operations, connecting everything from smart home assistants and wearable health trackers to industrial control systems and critical infrastructure. At its core, an IoT device is any object equipped with sensors, software, and connectivity that enables it to collect, exchange, and act on data. This constant flow of information creates new levels of efficiency, automation, and convenience, but it also dramatically expands the attack surface for cybercriminals.

As the number of connected devices continues to grow into the tens of billions worldwide, so do the risks. Many IoT devices are deployed with limited security features, shipped with default credentials, or lack regular software updates. Combined with their direct connection to networks and sensitive data, these weaknesses make IoT a prime target for cyberattacks.

Table of Contents

Types of IoT Devices
Top 5 Security Threats Posed by IoT Devices
How to Secure IoT Devices

Types of IoT Devices

IoT spans a wide spectrum of devices, ranging from personal gadgets to industrial systems. Understanding the different categories helps highlight both their benefits and the risks they introduce.

These are the connected devices most people use in their homes. Smart speakers like Amazon Echo or Google Nest, fitness trackers such as Fitbit and Apple Watch, smart thermostats like Nest, connected kitchen appliances, and DIY home security cameras are all part of this category.

While they offer convenience and automation, they often ship with minimal or outdated security controls. For example, many smart cameras come with default credentials, and some smart TVs have been found to transmit unencrypted viewing data. If not properly configured, these devices can become easy entry points for attackers or be hijacked into botnets.

Businesses deploy IoT devices to streamline operations and improve workplace efficiency. This includes smart conference systems that control lighting and presentations, RFID-based building access controls, badge readers, IP-based phone systems, connected printers, and even smart HVAC systems in office buildings.

While they reduce costs and simplify management, they are often overlooked in security inventories. A compromised smart printer, for instance, can provide an attacker with a foothold on the corporate network, while insecure access control systems could enable unauthorized physical entry.

Industrial and critical infrastructure sectors depend heavily on connected devices to monitor and manage processes. Examples include vibration and temperature sensors on manufacturing lines, smart meters in utilities, remote monitoring of oil and gas pipelines, and connected infusion pumps or patient monitoring systems in healthcare.

These devices provide real-time data that drives efficiency, safety, and uptime. But because they often run on outdated firmware, lack encryption, or are difficult to patch without disrupting operations, they are high-value targets for attackers. A compromised IIoT device could shut down a production line, cause blackouts in energy grids, or endanger patient safety in hospitals.

From smart speakers to industrial sensors, what all IoT devices have in common is connectivity. Each one acts as a gateway into larger systems, often collecting sensitive data or controlling critical functions. Unfortunately, security has not always kept pace with innovation. Many devices are built for speed-to-market rather than resilience, leaving gaps such as weak authentication, outdated software, and limited visibility once deployed.

"Tools that are part of the Internet of Things (IoT) play a large part in nearly every aspect of your life, albeit invisibly. They run the machines that make some or all components in almost everything you buy or use.

 

IoT devices are unique because they don’t have the same requirements or visibility as end user computers (PC’s and Mac’s), or data center or cloud based computers. They might be neglected as long as they’re making widgets, maintaining alloy mixtures correctly, or keeping the temperature correct in a fish tank. Trouble can arise if a mistake is made and they’re exposed beyond their useful area. Ensuring these devices are protected with network segmentation is only one of many ways to protect the IoT devices and the rest of your network. Be careful not to let your fish tank compromise your whole network!"

David Brockmyer
Fmr CISO at River City Bank

Top 5 Security Threats Posed by IoT Devices

The rapid adoption of IoT has outpaced the ability to secure it, creating several avenues of attack that organizations and individuals must contend with.

As billions of devices come online, many are deployed without the same security rigor applied to traditional IT assets, leaving them exposed.

According to IBM's Cost of a Data Breach Report 2025, breaches in which IoT environments were impacted cost $175,010 more on average.

IBM's Cost of a Data Breach Report 2025

#1 - Default or Weak Credentials

Many IoT devices ship with factory-set usernames and passwords such as “admin/admin” or “1234.” Because users often fail to change these defaults, attackers can easily scan for and exploit them at scale. A single exposed smart camera or router with weak credentials can become an attacker’s entry point into an entire home or enterprise network.

#2 - Unpatched Vulnerabilities

Unlike desktops or servers, many IoT devices lack a consistent patching process. Some manufacturers stop supporting devices quickly, while others require manual updates that organizations overlook for fear of downtime. This creates a backlog of unpatched vulnerabilities, giving attackers a wide window to exploit known flaws. For example, unpatched smart meters or medical devices could expose both sensitive data and safety-critical functions.

#3 - Botnet Recruitment

Compromised IoT devices are often repurposed to form massive botnets that launch distributed denial-of-service (DDoS) attacks. The Mirai botnet famously harnessed insecure IoT cameras and DVRs to take down major websites in 2016. Today, botnet operators continue to target IoT because of the sheer number of devices and their often-poor defenses. Even a single vulnerable device can contribute to a flood of malicious traffic against critical infrastructure or online services.

#4 - Data Interception and Theft

IoT devices gather enormous amounts of sensitive data: fitness trackers monitor health metrics, industrial sensors record production data, and smart home systems log daily routines. If this data is transmitted without proper encryption, attackers can intercept it in transit. Stolen data can then be sold, used for identity theft, or leveraged in corporate espionage.

#5 - Pivoting Into Critical Systems

Perhaps the most dangerous risk is that attackers can use IoT devices as stepping stones into larger networks. Once inside, they can move laterally, escalating access and targeting more sensitive systems. In an enterprise, a compromised smart printer or HVAC system might eventually lead to a breach of customer databases. In critical infrastructure, access through a vulnerable IIoT device could shut down utilities, manufacturing operations, or hospital equipment, leading to dangerous consequences.

The security risks of IoT extend far beyond the devices themselves. Weak passwords, unpatched vulnerabilities, and poor encryption make them easy prey, while their connectivity allows attackers to use them as launching pads for much larger campaigns. Whether it’s personal inconvenience from a hacked smart camera or life-threatening disruption in healthcare or energy, the stakes are too high to ignore.

How to Secure IoT Devices

While IoT introduces new risks, these threats can be managed with the right approach. Securing connected devices requires a mix of good practices, layered defenses, and ongoing monitoring.

  • Change Default Settings – The first step is simple but often overlooked: change factory-set usernames and passwords. Strong, unique credentials, ideally combined with multifactor authentication, make devices much harder to compromise.
  • Keep Firmware and Software Updated – Manufacturers release updates to patch vulnerabilities, but many devices go unpatched. Organizations should establish processes to monitor and apply updates consistently, or choose devices that support automatic updates.
  • Segment IoT Networks – Placing IoT devices on separate network segments limits the damage if one is compromised. Critical business systems should never share the same network as consumer-grade IoT devices or smart office tools.
  • Encrypt Data in Transit – Whether it’s personal health data or industrial telemetry, encryption ensures that sensitive information cannot be easily intercepted as it moves between devices and servers.
  • Monitor and Audit Regularly – Visibility is often the biggest gap in IoT security. Organizations should deploy monitoring tools to track device activity, detect anomalies, and identify potential compromises before they escalate. Additionally, regular penetration testing of IoT devices can surface vulnerabilities and validate fixes before they’re exploited by attackers.
  • Choose Vendors with Security Built In – Not all devices are created equal. Prioritize vendors who design security into their products, provide clear patching policies, and allow for centralized management.

The reality is that IoT will only continue to expand, embedding itself deeper into daily life and critical infrastructure. Organizations that build layered, proactive defenses today will not only prevent costly breaches but also position themselves to harness the full value of IoT safely and responsibly.

Bringing IoT Security Into Focus

The Internet of Things has transformed how we live and work, connecting billions of devices across homes, businesses, and industries. But every new connection also represents a potential entry point for attackers. Weak defaults, unpatched vulnerabilities, and poor visibility have already fueled some of the largest cyber incidents in recent years, and as adoption grows, the stakes will only rise.

Securing IoT is not about eliminating devices but about managing them responsibly. By changing defaults, applying updates, segmenting networks, encrypting data, employing regular testing, and choosing security-minded vendors, organizations and individuals can dramatically reduce their risk.

IoT will continue to expand its role in modern life, and with the right practices, it can do so safely.

Ready to strengthen your IoT security strategy? Learn more about how TrollEye Security can help safeguard your connected environment.

Learn More About IoT Penetration Testing

FAQs About IoT Device Security

What is an IoT device?

An IoT device is any object with sensors, software, and connectivity that allows it to collect and exchange data over a network. Examples range from smart speakers and wearable fitness trackers to industrial sensors and medical equipment.

Many IoT devices are shipped with weak or default credentials, lack regular patching mechanisms, and have limited visibility once deployed. Their always-on connectivity makes them attractive entry points for attackers.

The top threats include exploitation of weak passwords, unpatched vulnerabilities, hijacking devices for botnets, interception of sensitive data, and using IoT as a foothold to infiltrate critical systems.

Enterprises should maintain an up-to-date inventory of devices, enforce network segmentation, monitor device activity, and integrate IoT security into their overall cybersecurity strategy. Partnering with vendors who support long-term updates and centralized management is also critical.

Unsecured IoT devices can expose sensitive personal data, disrupt business operations, and even endanger lives when critical infrastructure or medical devices are targeted. They can also be conscripted into botnets to fuel large-scale attacks.

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