IoT security is a top concern — and for good reason

The concept of the Internet of Things (IoT) revolves around the idea that virtually every device can be a computer. From light bulbs and thermostats to cars and security cameras.

Enterprises are increasingly integrating connected IoT devices into their operations, reflecting a substantial growth trend observed in the industry over recent years. This rapid escalation is fueled by factors such as the falling cost of sensors and the expansion of low-power connectivity options like Bluetooth Low Energy and LoRa.

These devices enrich our daily operations but also introduce significant security risks.

The crux of the problem is that every computer is susceptible to hacking. In a world increasingly reliant on IoT, this translates to an elevated risk of everything being hackable.

Understanding the attack surface

The attack surface in an IoT context refers to the potential points where an unauthorized user can try to enter or extract data.

As IoT devices become more complex, the number of lines of code increases, leading to greater complexity and more potential bugs. This increase in complexity directly correlates with an increase in vulnerabilities.

“The manufacturers of IoT devices have not always done everything possible to safeguard them,” leading to more accessible attack vectors.

Imagine the attack surface as a bullseye: the larger it is, the easier it is for a cyber attacker to hit. Therefore, minimizing it is crucial.

Commonly targeted IoT devices

Routers are among the most targeted IoT devices, with connected cameras coming in at number two. Key sectors deploying IoT solutions include hybrid work technologies, security cameras, and real-time monitoring and location tracking.

Industries utilizing IoT and their applications

In recent years, IoT has not only transformed personal convenience but also revolutionized how businesses, government agencies, and other organizations operate.

By connecting devices and systems, IoT offers a vast array of benefits, including increased operational efficiency, enhanced customer experiences, real-time data collection, and new sources of revenue generation.

Here’s a closer look at how different sectors are employing IoT.

Healthcare

The healthcare industry has been transformed by IoT, with hospitals utilizing various devices to improve patient care, streamline operations, and reduce costs. According to the report IoT Device Security in 2024: The High Cost of Doing Nothing by Asimily, 25 percent of Americans were impacted by healthcare data breaches in 2023. 

Common IoT applications in healthcare include: 

• Wearable devices: Fitness trackers and smartwatches for monitoring patient health. 
• Medical devices: IoT-enabled pacemakers and blood pressure monitors. 
• Hospital equipment: Advanced machinery like MRI and X-ray machines connected for data insights.

Manufacturing

Manufacturing has seen a significant adoption of IoT for optimizing efficiency and quality. Asimily’s research shows this sector experienced 54.5 percent of attacks in 2023, with around 6,000 attacks per week.

Key IoT devices in this sector include: 

• RFID tags: Used for inventory tracking, these tags help in monitoring the location of products. 
• Sensors: Monitoring conditions like temperature and humidity in factories. 
• Cameras and controllers: Utilized for quality control and automating processes like conveyor belts and robotic arms.

Hospitality

The hospitality industry is enhancing guest experiences through IoT: 

• Sensor-based lighting: Adjusting automatically to the time of day and guest needs. 
• Energy management systems: Reducing consumption and costs. 
• Smart locks and AI-powered services: Enabling phone-based room access and improving service efficiency.

Retail

IoT in retail is creating more personalized shopping experiences: 

• Beacons: Sending targeted messages to shoppers’ smartphones. 
• Interactive displays and connected fitting rooms: Providing product information and facilitating orders and payments. 
• Digital loyalty cards: Tracking customer purchase history for personalized rewards.

Transportation

Critical to global trade, and vulnerable to significant operational disruptions, in transportation, IoT aids in: 

• Traffic monitoring: IoT devices deployed by government agencies to analyze traffic patterns. 
• Streetlights and sensors: Monitoring air quality and pedestrian presence for urban planning and safety.

Finance

The financial services sector is increasingly employing IoT for:

• Fraud detection: Using sensors in ATMs to identify tampering and prevent fraudulent activities. 
• Customer service enhancement: AI-enabled chatbots for customer interaction and support.

Each of these industries illustrates the diverse and impactful ways in which IoT is being integrated into various sectors, revolutionizing operations and enhancing user experiences.

Examples of IoT security breaches

Illustrating the severity of IoT security threats, notable incidents include:

1. The Mirai botnet (Dyn attack): A massive DDoS attack in 2016, leveraging a botnet of compromised IoT devices, including cameras and DVRs, disrupted internet services. This attack involved 100,000 infected IoT devices, and a 400 percent increase in IoT malware was identified in a single year.
2. The new Jeep hack: In 2015, hackers remotely controlled a Jeep SUV by exploiting a vulnerability in the IoT chip’s firmware, highlighting the risks in smart vehicles.
3. Ring’s security camera breach: User data from Ring’s home security cameras was inadvertently shared with third parties, and weak credentials allowed cybercriminals to access and communicate through these devices.

IoT risks and concerns in a business environment

IoT devices often lack inherent security measures compared to traditional IT systems. Around 80 percent of companies have integrated IoT into their operations in some way (Asimily), often deploying devices built with low-cost, outdated software and hardware, lacking standardization for security.

As the Internet of Things weaves itself more intricately into the fabric of business operations, it brings with it a spectrum of risks that can have far-reaching implications.

1. Privacy: Unauthorized access to IoT devices can lead to the recording or tracking of activities without consent. “In recent years, IoT has also revolutionized the way businesses, government agencies, and other organizations operate.”
2. Safety: Devices like implantable medical equipment could be hacked, leading to dangerous outcomes.
3. Denial of service attacks: These attacks can make devices unresponsive or, worse, use your devices to launch attacks on others. Additionally, IoT devices can be weaponized in DoS attacks, overwhelming services with traffic.
4. Insecure communications and data storage: One primary concern is the insecurity of communications and data storage in IoT applications, leading to unauthorized access and data theft.
5. Insufficient data protection and device management: Challenges in data protection and poor management of IoT devices make them vulnerable to cyberattacks.
6. Insecure default credentials and physical security challenges: Many IoT products ship with insecure default credentials, and their deployment in urban areas where establishing physical security is difficult allows attackers direct access.
7. Data privacy concerns and outdated devices: The passive collection of vast amounts of data by IoT devices raises privacy issues, especially when data falls into the wrong hands due to inadequate security measures. Outdated IoT devices that outlive their support period become vulnerable to cybersecurity threats.

Consequences of IoT security breaches for businesses

Regarding the perceived risks associated with IoT, research conducted for the 2023 Benchmark Report on IoT Security reveals that 40 percent of security leaders and other qualified respondents identify compromised customer data as their top concern regarding IoT attacks. 

This is followed by concerns about reputational damage (28 percent), theft of intellectual property (16 percent), and operational downtime (10 percent). These statistics highlight the multifaceted nature of IoT security challenges, where data protection remains a primary concern, and the impacts can ripple through various aspects of business operations.

The repercussions of IoT security breaches are substantial and multifaceted:

1. Data theft and privacy violations: Breaches can lead to unauthorized access to sensitive information, leading to identity theft or financial fraud.
2. Financial losses and reputational damage: Security failures can inflict severe financial losses and damage to a company’s reputation, potentially leading to loss of customer confidence and legal repercussions.
3. Physical harm and safety risks: In sectors like healthcare and transportation, breaches in IoT devices could result in physical harm or safety hazards.
4. Operational disruption: A security breach could disrupt business operations, causing significant productivity losses and operational chaos.
5. Legal implications: Non-compliance with regulations like GDPR, CCPA, and HIPAA due to security breaches can result in legal consequences and hefty fines.

Strategies for enhancing IoT security in the office

As IoT devices become more integrated into everyday business operations, robust security measures to protect sensitive data and maintain operational integrity become paramount.

Key strategies businesses can employ to fortify their defenses against potential IoT security threats include:

1. Evaluating IoT security: Regularly assess the safety of IoT systems, involving cybersecurity experts as needed.
2. Device discovery and management: Maintain visibility of all IoT devices, conduct risk assessments, and include IoT devices in penetration testing.
3. Implement strong authentication: Use robust password policies for all IoT devices to prevent unauthorized access.
4. Regular software updates: Keep IoT devices updated with the latest software and firmware patches to address known vulnerabilities.
5. Network segmentation: Isolate IoT devices from critical network segments to minimize the risk of lateral movement by attackers.
6. Encryption: Encrypt data on IoT devices both at rest and in transit to safeguard against unauthorized eavesdropping and tampering.

Businesses must implement a holistic approach to IoT security. This includes understanding network infrastructure, prioritizing vulnerabilities, and implementing effective defense strategies.

The future of IoT for business

The burgeoning scale of the IoT sector is highlighted by projections that the IoT device market is expected to reach a staggering $1.6 trillion by 2025.

As IoT pulls us towards an expanded attack surface, it’s essential for businesses to take control of their IoT environment. Effective management and security strategies can help ensure that IoT devices serve businesses effectively, maintaining both safety and privacy.

Keeping devices secure is not just a technical challenge but also an organizational one, requiring informed policies, educated users, and secure infrastructure. 

In an age where security is of the utmost importance to businesses and individuals alike, Liquid Web can provide a safe and secure infrastructure to help keep threats out. 

Our hosting plans give you the secure foundation your business needs, backed by our certified infrastructure and robust security measures, including server and DDoS attack protection, intrusion detection, firewalls, and more.

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