Most common IoT security issues and how to prevent them

The Internet of Things (IoT) has changed how businesses and consumers use technology. It provides great connectivity and convenience but, at the same time, brings many security issues. As protecting large networks of connected devices is now a big concern for companies, we focused on the most common IoT security challenges and risks and outlined the key areas to put efforts into protecting IoT ecosystems.

The cost of IoT security breach

The risks of IoT security breaches go beyond technical issues and can result in significant financial losses. Palo Alto Network’s 2024 Benchmark Report on IoT Security claims that the average cost of an IoT security breach in 2023 was $9.5 million.

These losses can occur in various areas, including legal fees, damage control efforts, and more. According to the report, the most common concerns regarding an attack on IoT infrastructure and systems are as follows:

• 43% – stolen or compromised customer or other sensitive data,
• 31% – reputational damage,
• 17% – the theft of intellectual property,
• 14% – operational downtime.

Two factors: IoT device vs IoT application security

IoT device and cloud IoT application security are both critical components of a comprehensive IoT security strategy.

IoT device security focuses on safeguarding the physical devices, ensuring they are protected against unauthorised access, tampering, and vulnerabilities that could be exploited at the device level.

On the other hand, cloud IoT application security involves protecting the cloud-based infrastructure and applications that manage, analyse, and store the data collected by IoT devices. This includes securing data transmission between devices and the cloud, managing access controls to cloud resources, and ensuring the cloud environment is resilient against cyber threats such as data breaches or unauthorised access.

While IoT device security is about ensuring that individual devices are secure, cloud IoT application security focuses on protecting the broader system that these devices connect to. Both are equally important; even if IoT devices are secure, vulnerabilities in the cloud application can still lead to significant security breaches. Conversely, a secure cloud environment cannot compensate for weak security at the device level. Together, these security measures ensure that IoT ecosystems are protected from end to end, from the devices collecting data to the cloud systems processing and storing it.

Most common IoT security challenges and vulnerabilities

In our experience working with IoT systems, security risks usually arise from large IoT ecosystems’ complexity and difficulty keeping track of connected devices. Insecure networks, insufficient data encryption, and infrequent software updates also significantly increase the risks. Furthermore, the absence of standardised security protocols and limited resources and workforce make securing IoT devices and systems more challenging.

System complexity

The extensiveness of IoT ecosystems is a double-edged sword, offering advanced capabilities while presenting numerous security challenges. 48% of security leaders pointed to the complexity of their IoT ecosystem as the biggest challenge in protecting against potential threats.

As the number and variety of IoT devices and digital products increase, so does the complexity of managing the ecosystem. Many organisations face the challenge of handling different types of IoT devices from diverse manufacturers with various operating systems and management tools, which can lead to security oversights and gaps between IoT systems and legacy infrastructure.

Poor attestation process

Many IoT devices have insufficient mechanisms for verifying the identity, integrity, and trustworthiness of devices before they interact with a network or system. If the attestation process does not adequately verify a device’s legitimacy, unauthorised or compromised devices could gain access to the network. This could allow malicious code or unwanted modifications to go undetected. Unverified or compromised devices can introduce vulnerabilities into the network, potentially leading to data breaches, illicit access, or attacks. If a network cannot ensure the trustworthiness of connected devices, the overall trust in the IoT system is diminished, impacting data integrity, privacy, and security.

Insufficient data encryption

IoT devices gather a wide range of information, including personal data, metrics, and data points. Most of the data is sent to the centralised storage (for example, in a public cloud), where cloud systems process and analyse it. If the transmitted data is unencrypted, it’s prone to exposing personal and confidential data on the network, allowing attackers to listen to network traffic, collect personal or confidential information, and then exploit that data for profit. That is why IoT solutions must implement proper communication protocols that support TLS encryption to ensure the highest possible resiliency against attacks.

Lack of regular software updates and security patches

Another danger is avoiding regular software updates and the introduction of security patches. Without updates, IoT devices are open to known security flaws, making them easy targets for data breaches, unauthorised access, and hijacking for cyber-attacks. Some IoT devices are designed with limited capabilities for receiving updates, and users are often unaware of the need to keep their devices current.

To lower these risks, manufacturers should design IoT devices that can get secure, over-the-air (OTA) updates. Also, educating users about the importance of updates can lower the likelihood of outdated, vulnerable devices. The update process can also be automated, so getting the newest, patched software version wouldn’t require any action from the user.

Malicious cyber activities

The IoT sector faces significant risks from various types of cyberattacks. Among the most common are botnet attacks, where hackers take control of devices to launch large-scale DDoS attacks, and ransomware attacks, which aim to seize sensitive data and demand payment for its release. Hackers often exploit vulnerabilities such as weak or default login credentials, insufficient data encryption, or outdated software that lacks the latest security patches.

One of the most infamous IoT security-related incidents is the 2016 Mirai botnet attack. Hackers used thousands of insecure IoT devices to launch a massive DDoS attack, bringing down major websites like Twitter and Netflix, highlighting how easily IoT devices can be used to cause widespread disruption.

IoT product manufacturers must focus on secure device configurations that ensure default credentials are changed, provide regular software updates to address vulnerabilities and implement strong security protocols such as firewalls and anomaly detection systems. By promoting a proactive security culture and educating users on best practices, manufacturers can improve the overall security of their IoT devices.

Too few standards, too many regulations

As stated in the 2024 Benchmark Report on IoT Security, the lack of universal IoT security standards complicates the protection of these devices, leaving organisations uncertain about the measures they should take. Also, highly regulated industries, such as healthcare or financial services, face additional layers of complexity that sometimes lead to conflicting security requirements.

Insufficient resources

Let’s say it out loud: keeping your IoT ecosystem secure is quite expensive. IT staffing and technology deployment costs may present a challenge, especially to small or decentralised organisations.

Security audit to reduce the risk of an IoT system breach

While basic security features are often in place, they are frequently insufficient to combat more sophisticated attack methods, leading to financial and reputational damage. It is crucial to have a comprehensive understanding of your IoT ecosystem to identify and mitigate potential threats.

Take advantage of our IoT Solution Audit to ensure your entire IoT platform is secure, compliant, performance- and cost-optimised. The service is free of charge and includes a full-day 360° audit of your IoT infrastructure run by a Spyrosoft expert. Full cooperation is under a non-disclosure agreement, so your source code stays secure and potential vulnerabilities covert.

During the audit, we focus on critical areas such as:

1. Device commissioning: the methods used for device authentication and commissioning processes.
2. Security: evaluation of authentication and authorisation protocols, encryption practices, vulnerability management, network security, and incident response plans.
3. Message broker protocols: assessment of the suitability, scalability, and reliability of the protocols used to ensure efficient and secure communication.
4. Communication formats: the standardisation and interoperability of communication formats used within the IoT ecosystem.
5. Data privacy: data storage security, data usage policies, and compliance with relevant regulations.
6. Cost and performance: analysis of the cost-effectiveness and performance metrics of the IoT setup.
7. Data storage: data collection, storage solutions, and data retention policies.
8. Resiliency: assessment of the system’s redundancy, disaster recovery plans, and fault tolerance capabilities.
9. Compliance and regulatory: ensuring the IoT solution adheres to industry-specific regulations and standards.
10. User experience: evaluation of the usability, support, and documentation of the IoT platform.

Opt for a free IoT system audit consultancy session

Don’t wait until a breach occurs – be proactive. Contact us via the form below to learn more about the audit service and ways to secure your IoT system.