Are Your IoT Devices Leaving the Door Open for Hackers?

If your business uses IoT devices like smart thermostats, wearable technologies, smart assistants, or internet-accessible security cameras or doorbells, to name just a few, your entire IT network may be subject to cybersecurity risks common to such devices. These security risks emerge from factors including:

• Poor or Limited Security Measures: Many smart devices are developed to meet cost and efficiency imperatives. The downside to such emphasis is often a lack of attention to security features. This can create cyber vulnerabilities due to issues like lack of encryption, substandard authentication processes, or failure to provide timely security updates.
• Default User Credentials: IoT devices are often programmed with default usernames and passwords that do not meet strong password criteria. For example, manufacturers may designate default credentials that are well-known, that can be easily guessed, or that could be quickly unlocked by hackers using a password cracker. Although end users do have the option to change device credentials upon initial installation, many users fail to do so. This makes their IoT devices essentially an “unlocked front door” to their entire IT network.
• Lack of Firmware Updates: As with any technology, IoT devices may have unidentified security vulnerabilities that are only discovered after they are released to the market. Standard practice for technology manufacturers is to release security updates as soon as possible to patch vulnerabilities that threat actors may exploit. However, although some IoT manufacturers may release regular firmware updates to fix these issues, there are still many that do not adhere to this well-established procedure for supporting customer cybersecurity. This leaves consumers in the difficult position of trying to identify which manufacturers they can rely on for updates, and which they cannot.
• Substandard Encryption: Encryption, the process through which data is converted into a secret code that conceals the information it contains, is often insufficient in IoT devices. The result of poor encryption is that it makes it easier for threat actors to intercept and decipher user data that is transmitted over networks. This leads to serious privacy concerns.
• Data Privacy Issues: Many users or businesses are unaware that IoT devices collect large amounts of data once they are deployed. If users are not fully aware of what data is being collected or how it will be used, they are clearly not empowered to make judgments with regard to data privacy. Importantly, if such data falls into the wrong hands—which the previous bullet established as a distinct possibility—it can place businesses, employees, and other entities in the business ecosystem at risk of identity theft or other privacy-related issues.
• Physical Vulnerabilities: Finally, because IoT devices are often installed in public spaces or in easily accessible locations throughout the workplace, this makes them prone to tampering by malicious actors. Physically tampering with an IoT device can degrade its security, creating a window of opportunity for hackers looking for a way into the business’ IT network.