Key IoT Security Risks Backed by Data

According to research, over 80% of enterprises integrated Internet of Things (IoT), of which 20% of enterprises faced an IoT-based attack in the last three years—risks like these are the biggest obstacles that Modern Enterprises have to confront. 

Fortunately, there is a solution to this; With the help of data-driven IoT security strategies, secure designs and constant monitoring, these risks can be easily dodged.  

Let’s drill down the key IoT security risks backed by data, who they impact the most, and how organizations can mitigate them effectively. 

Understanding IoT Security Risks for Modern Enterprises

IoT security means to protect connected devices, network and the data they transfer from unauthorized access and cyberattacks.  

As the number of connected devices increase, IoT security challenges for Modern Enterprises and IT leaders increase too because most IoT devices are deployed with limited visibility, weak authentication mechanism and their patching cycles occur irregularly. This makes it difficult to detect vulnerabilities, creating room for attacks.  

The maturity of IoT security adoption generally evolves through these stages: 

• Unsecured Device Deployment: Devices are deployed quickly with default credentials and minimal security checks. 
• Basic Network-Level Protection: Firewalls and VPNs are introduced, but devices themselves remain vulnerable. 
• Device Authentication & Access Control: Identity-based access is applied, improving control but increasing management complexity. 
• Centralized Monitoring & Patch Management: Organizations begin tracking devices and automating updates. 
• Security-by-Design IoT Architecture: Security is embedded during device development and deployment. 
• Data-Driven & Autonomous IoT Security: AI monitoring spot anomalies, predicts threats, and reduce risks. 

Key IoT Security Devices Risks Backed by Data

Poor Device Visibility and Asset Management

In most Enterprises, they are unable to identify how many IoT devices are connected to their network—40% of enterprises have unmanaged IoT devices operating silently. 

This lack of visibility allows attackers to exploit forgotten or misconfigured devices. 

Weak Authentication and Default Credentials

Since most companies use hardcoded or default passwords, like 12345 or admin/admin, it becomes easier for attackers to scan networks and identify devices to gain unauthorized access.  

So, if your authentication is not strong enough, you are at risk of letting attackers gain access to you.  

Unpatched Firmware and Software Vulnerabilities

Some IoT devices stay outdated for years. Because they aren’t like traditional computers, updates rarely happen on schedule. This means that vulnerabilities in it are not removed—allowing hackers to break in easily.   

Insecure Data Transmission

Often data can travel across connections without proper encryption, making it easy for hackers to gain access. This is particularly risky in industries such as healthcare, manufacturing, and smart infrastructure, where stolen or altered data can lead to patient safety issues, production disruptions, or compromised critical systems. 

Compliance and Regulatory Risks

IoT deployments also processes data which is personal or operational. So, weak security in non-compliance with regulations like GDPR or industry-specific standards can lead you to penalties which are legal or even financial.   

Solutions to Key IoT Security Issues Backed by Data

Improve Device Visibility and Asset Management

To improve device visibility and manage endpoints, Modern Enterprises should: 

• Use centralized IoT device management platforms to monitor connected devices. 
• Stay up-to-date with inventory of all devices. 
• Conduct regular network scans to spot unknown devices. 

Strengthen Authentication and Access Control

Instead of weak passwords, Modern Enterprises must: 

• Use strong, unique passwords for each device, like its$OKay4!
• Implement multi-factor authentication (MFA). 
• Apply role-based access control (RBAC) to limit device and user privileges. 

Rules for strong password: 

• Have at least 12 Characters. 
• Include uppercase letters, lowercase letters, numbers, and special symbols. 
• Avoid common words or patterns, like password123. 
• Different passwords for every device and Account. 
• Update as frequently as possible.  

Regularly Update Firmware and Software

• Make automatic update schedules for IoT devices. 
• Track firmware versions across the network and find known vulnerabilities. 
• Test updates before deployment to avoid issues. 

Encrypt Data and Secure Communication

Modern Enterprises should: 

• Encrypt using modern protocols like TLS or AES. 
• Ensure communication channels for endpoints and gateways are safe.  

Monitor and Respond to Threats Proactively

• Deploy AI-powered threat detection and anomaly monitoring solutions. 
• Get automated notifications in case of unusual activity.  
• Add IoT security with current SIEM or SOC platforms.  

Challenges to Consider in IoT Security

Although awareness regarding IoT is rising, enterprises still come across hurdles when securing their IoT devices.  

Limited Security Expertise

IoT security needs knowledge of hardware, networking and software security—but not all team members know this. Consequently, they struggle with configuring devices, spotting vulnerabilities, and responding effectively to threats.  

How to Handle It: 

Adopt managed IoT security platforms and provide focused training for IT and security teams. 

Scalability vs. Security Trade-Off

As IoT devices increase, keeping so many devices safe at once becomes difficult. Many Enterprises try to speed up their setup, but it only weakens their defenses in the future. numbers grow, enforcing security policies manually becomes difficult and expensive. 

How to Handle It: 

Start by setting up a single system to manage every connected device. Tools that work automatically keep pace when more gadgets join the network. Using the same rules everywhere helps avoid weak spots. Plus, constant monitoring detects issues early, helping to keep up with many devices at once.  

Integration with Legacy Systems

Enterprises add IoT devices with legacy IT infrastructure—this infrastructure wasn’t designed for security purposes. This leaves companies with the challenge to protect both these systems simultaneously.  

How to Handle It: 

Segment IoT networks and apply zero-trust principles to isolate vulnerable components. 

Lack of Trust in Automated Security Decisions

While AI solutions are designed for accuracy, in some rare cases AI agents can make false positives or miss threats—hence; security teams are reluctant to rely on automation.  

How to Handle It: 

Run automated monitoring alongside manual audits to validate insights before full adoption. 

IoT security is no longer optional—it is a foundational requirement for modern enterprises. By understanding key risks, addressing pain points, and adopting data-driven security strategies, businesses can protect innovation without sacrificing growth. For more information, contact us. 

Frequently Asked Questions

What are the three types of IoT security?

Protection for IoT comes in three forms: device security, network security, and data security. A secure device means both hardware and internal software stay out of reach from intruders. Network security refers to data moving back and forth across networks. Lastly, data security refers to encrypting travelling data.

What are the risks of IoT security?

These risks are device visibility, weak authentication, unpatched firmware, insecure data transmission, and integration issues with legacy systems. Hackers can easily take advantage of these to break in.

What are the 4 pillars of IoT?

Sensors/devices, connectivity, data processing, and user interface are the four pillars of IoT. Here, sensors collect data. Connectivity transfers data securely to different networks. Data processing analyzes and interprets information. User interface allows humans to monitor and manage data.

What is a key challenge in IoT security?

It is handling tons of connected devices without weakening protection. Lots of companies run thousands of mismatched devices with different software, different rules, and different limits. Patching them fast, enforcing steady login rules, watching activity live becomes hectic, leading to mistakes.

What are the 5 C's of IoT?

Connection (communication of devices within the network), Cloud (storing data and resources), Cybersecurity (protection of devices), Content (information derived from IoT data), and Controller (systems or applications that manage devices).