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The Internet of Things (IoT) has transformed workplaces. Smart sensors, connected cameras, and automated systems make everything faster, smarter, and more efficient. But there’s a catch—these same devices open up serious security risks.
Think about it: An unsecured smart thermostat could let hackers into your corporate network. A connected medical device could be exploited to put lives at risk. And botnets? They turn everyday IoT gadgets into weapons for cybercriminals.
The reality? Most businesses aren’t prepared. IoT security is often overlooked, leaving networks wide open for attacks. Let’s break down why this matters, what’s at risk, and how you can protect your organization before it’s too late.
IoT Security Risks: Editor’s Picks
Before we go into the full breakdown, here are some of the most eye-opening IoT security stats:
- More than 50% of IoT devices have critical vulnerabilities that hackers can exploit right now. (IBM X-Force Threat Intelligence)
- One in three data breaches now involves an IoT device. (Verizon DBIR)
- The Mirai botnet turned unsecured IoT devices into an army of attack machines, launching one of the biggest DDoS attacks ever recorded. (Kaspersky)
- Healthcare IoT devices are a prime target, with attacks on medical devices increasing by 123% year over year. (Statista)
- Unpatched firmware is responsible for 60% of IoT security breaches. (IoT Security Foundation)
- Compromised smart cameras and sensors have led to major surveillance breaches in corporate and government settings. (CISA)
- IoT security failures cost businesses an average of $330,000 per incident. (NIST)
IoT devices are everywhere—and so are the risks. Now, let’s go even deeper into what IoT security is, why it matters, and the biggest threats you need to be aware of.
What Is IoT and Why Does Security Matter?
IoT stands for Internet of Things—a network of connected devices that communicate with each other over the internet. Think smart thermostats, security cameras, factory sensors, medical devices, and even coffee machines. They collect, share, and process data to make everyday operations faster, more efficient, and automated.
But here’s the problem: Most IoT devices aren’t built with security in mind. They’re easy targets for hackers, and once compromised, they can serve as an open door to entire corporate networks.
Why Should You Care?
An unsecured IoT device is a full-fledged business risk. Attackers can:
- Steal sensitive data by breaching IoT-connected systems.
- Shut down entire operations by attacking industrial IoT (IIoT) in factories and supply chains.
- Hijack smart security cameras to spy on companies.
- Launch large-scale botnet attacks using compromised IoT devices.
And the scariest part? Most businesses don’t realize they’re at risk until it’s too late. According to Verizon’s 2024 Data Breach Investigations Report, one in three breaches now involves an IoT device.
The Compliance Factor
Beyond security, businesses must also consider compliance risks. Regulations like GDPR, HIPAA, and NIST’s IoT Cybersecurity Framework require organizations to secure IoT devices and protect user data. Failing to comply? That means hefty fines, lawsuits, and reputational damage.
IoT is becoming more and more embedded in how businesses operate. But without proper security measures, it’s an open door for cyber threats. Next, let’s take a closer look at the biggest IoT security risks you need to watch out for.
Key IoT Security Risks Backed by Data
Every connected device is a potential attack vector. Here’s how IoT devices put organizations at risk—backed by hard data.
Device Vulnerabilities
- 60% of IoT breaches come from unpatched firmware and outdated software. (IoT Security Foundation)
- One in five IoT devices still uses default passwords—making them ridiculously easy to hacked. (IoT World Congress)
Botnets & DDoS Attacks
- The Mirai botnet took down major websites (like Twitter, Spotify, and Netflix) by hijacking unsecured IoT devices. (Kaspersky)
- IoT botnets are now responsible for 35% of all DDoS attacks. (CISA)
Data Privacy Breaches
- Connected devices expose sensitive data, from financial transactions to employee locations.
- More than 25% of IoT-related breaches involve stolen personal data. (IBM X-Force Threat Intelligence)
Industrial IoT (IIoT) Risks
- Critical infrastructure (power grids, water treatment plants) rely on IoT—but many lack proper security.
- Cyberattacks on industrial IoT increased by 75% in the past two years. (Verizon DBIR)
Physical Security Risks
- Compromised smart locks have led to break-ins in corporate offices and hotels.
- Connected cars have been remotely hacked and a significant number of lives have been put at risk. (Statista)
Direct Costs of IoT Breaches
- IoT security failures cost businesses an average of $330,000 per incident. (NIST)
- Companies in regulated industries (healthcare, finance) face additional fines, often reaching millions.
Reputation Damage
- Customers lose trust fast. 78% of consumers say they’d stop using a company’s services after a major IoT-related breach. (IoT Security Foundation)
Downtime & Business Disruptions
- Cyberattacks on IoT networks lead to an average of 6.5 hours of downtime per incident. (CISA)
- For manufacturing and supply chain businesses, that can mean millions in lost revenue.
Industries Most at Risk
Some industries are playing with fire when it comes to IoT security. They’re stacked with connected devices, yet most aren’t prepared for an attack. If your industry is on this list, it’s time to rethink security before a breach shuts everything down.
Healthcare
Medical IoT devices are revolutionizing patient care, but they’re also a hacker’s dream. Many of these devices run on outdated software which makes them way too easy to exploit. When hospitals get hit, patient safety is on the line.
- 75% of healthcare IoT devices still use outdated operating systems. (IBM X-Force)
- A single ransomware attack can lock hospitals out of critical systems and delay urgent treatments.
- Medical IoT breaches cost an average of $10 million per attack, the highest across all industries. (Verizon DBIR)
Smart Cities
Public infrastructure is becoming smarter and more connected. That also makes it a prime target. Hackers can take control of city systems and unleash massive disruptions that impact millions.
- Cyberattacks on smart city infrastructure jumped 50% last year. (Verizon DBIR)
- Traffic lights, surveillance cameras, and public Wi-Fi can all be hijacked if left unsecured.
- A single breach could shut down power grids, disrupt emergency services, or freeze city operations.
Manufacturing
Factories rely on Industrial IoT (IIoT) devices to automate production and manage supply chains. But when security takes a backseat, entire operations are at risk of being hijacked.
- Over 70% of manufacturers reported cyber incidents linked to IoT devices. (Kaspersky)
- Hackers can halt production lines, damage equipment, or manipulate supply chains for profit.
- Cyberattacks on manufacturing surged by 87% last year. Naturally, it is one of the most targeted industries.
Retail
IoT is changing how retailers manage inventory, process payments, and track shipments. But every smart device is another potential entry point for cybercriminals.
- Retailers lost over $20 billion to IoT cyberattacks in 2024. (Statista)
- Unsecured payment systems allow hackers to steal credit card info straight from connected POS terminals.
- Smart inventory trackers and connected devices can be used to disrupt supply chains and cause shortages.
Who’s Next?
IoT adoption is expanding fast. Finance, logistics, and education are all next in line for major IoT-based attacks. If your business relies on connected devices, securing them needs to be a top priority.
Strategies to Mitigate IoT Security Risks
IoT devices aren’t going away, but the threats surrounding them are getting worse. Instead of waiting for a breach, businesses need to take action now. Here’s how to stay ahead of attackers and lock down IoT security.
Adopt IoT Security Frameworks
Blindly adding IoT devices without security measures is asking for trouble. Organizations need to follow recognized frameworks that outline best practices for IoT security.
- The NIST IoT Cybersecurity Framework provides detailed security guidelines for IoT devices.
- Businesses that implement IoT security frameworks reduce cyberattack risks by 60%.
- Compliance with industry standards helps prevent regulatory fines and legal issues.
Network Segmentation
Letting IoT devices freely connect to your main business network is a massive mistake. A single compromised device can open the door to critical systems.
- IoT devices should be isolated on their own network to prevent lateral movement.
- Segmenting networks ensures an attack on one system won’t spread to others.
- Businesses that use network segmentation reduce breach costs by 35%.
Update Firmware Regularly
Most IoT devices ship with preloaded vulnerabilities. If businesses aren’t updating firmware, they’re leaving doors wide open for attackers.
- 60% of IoT breaches happen due to outdated firmware. (IoT Security Foundation)
- Enabling automatic updates ensures patches are applied before hackers can exploit flaws.
- Companies that regularly update IoT firmware cut attack risks in half.
Strong Authentication
Weak or default passwords are the number one cause of IoT breaches. Attackers know that businesses rarely change default credentials. And they are licking their chops because of it.
- Every IoT device should have unique, strong passwords to block unauthorized access.
- Multi-factor authentication (MFA) adds an extra layer of protection.
- Businesses using strong authentication see 90% fewer IoT-related security incidents.
Device Encryption
Many IoT devices transmit sensitive data without any encryption, leaving it exposed to hackers. Without encryption, data can be intercepted, modified, or stolen.
- Encrypting data in transit and at rest ensures attackers can’t read stolen information.
- End-to-end encryption helps block man-in-the-middle attacks.
- Businesses that encrypt IoT data reduce breach costs by an average of $1.4 million.
Final Thoughts
It’s not a stretch to say that IoT security is basically a necessity for businesses. And owners that take proactive steps now will avoid costly breaches, protect customer data, and maintain trust.
JumpCloud’s security solutions help businesses manage IoT risks, enforce compliance, and stay ahead of cyber threats. Take control of your IoT security before attackers do it for you. Get in touch today!
