As organizations deploy more internet-connected technologies across enterprise, healthcare, manufacturing, retail, and critical infrastructure environments, the number of IoT devices connected to corporate networks continues to grow. While these devices improve efficiency, automation, and operational visibility, they also expand the attack surface and introduce new IoT security risks.
Many IoT devices have limited built-in security, long operational lifecycles, and infrequent firmware updates. Unlike traditional IT assets, they are often difficult to monitor, patch, and manage, making them attractive targets for cyberattacks and creating unique security challenges for security teams.
Effective IoT security requires a layered approach that combines strong security controls, continuous monitoring, and complete visibility into connected assets. Understanding the risks associated with IoT devices, and knowing exactly what is connected to the network, is essential for reducing cyber risk, protecting sensitive data, and maintaining business operations.
This guide explores key IoT security risks, common attack methods, best practices for securing connected environments, and why complete asset visibility is the foundation of an effective IoT security strategy.
What is IoT Security?
IoT security is the practice of protecting Internet of Things (IoT) devices, the networks they connect to, and the data they generate, process, and exchange throughout their lifecycle. It encompasses the technologies, policies, and processes used to prevent unauthorized access, cyberattacks, data breaches, and device compromise while ensuring connected systems remain secure, reliable, and available.
Effective IoT security combines multiple layers of protection. These include device security measures such as unique device identities, secure boot, signed firmware, secure firmware updates, strong authentication, and protection against physical tampering, along with communication and network security through encryption, secure protocols, access control, and network segmentation. Continuous asset visibility, monitoring, and vulnerability management also play a critical role in identifying risks and maintaining the security of large-scale IoT environments.
Because IoT ecosystems often include thousands of connected devices from different manufacturers, IoT security extends beyond protecting individual devices. It also focuses on securing the systems and infrastructure that enable connected devices to communicate and operate safely, helping organizations protect sensitive data, reduce cyber risk, and maintain business continuity.
Types of IoT Devices That Need Protection
Enterprise IoT environments include a wide range of connected assets. For example:
- Workplace devices (printers, VoIP phones, badge readers)
- Building systems (HVAC, smart lighting, access control systems)
- Healthcare devices (infusion pumps, patient monitors, medical imaging systems)
- Industrial equipment (PLCs, manufacturing sensors, industrial controllers)
- Retail devices (POS terminals, barcode scanners, self-checkout kiosks)
Although these devices serve different business functions, they often share similar security challenges. Many have limited processing power, long operational lifecycles, or infrequent firmware updates, making them difficult to secure using traditional endpoint protection.
Why IoT Devices Are Vulnerable to Cyberattacks
IoT devices are attractive targets due to weak configurations, limited patching capabilities, and broad network access. Many devices lack strong authentication, encryption, and secure default settings, making them vulnerable to credential attacks, malware infections, unauthorized access, and device spoofing.
Once compromised, attackers can:
- Move laterally across the network
- Access sensitive systems
- Disrupt operations
Common IoT Security Threats and Risks
Because IoT devices often operate with limited built-in security, organizations face a wide range of threats and operational risks. These risks extend beyond individual devices to the networks they connect to and the organization’s ability to identify and manage connected assets.
IoT vulnerabilities are frequently exploited through attacks such as distributed denial-of-service (DDoS), botnet infections, malware deployment, man-in-the-middle (MITM) attacks, and unauthorized remote control of devices. Effective IoT security requires organizations to address technical vulnerabilities, network-based threats, and operational visibility challenges simultaneously.
These risks typically fall into three key categories: device-level vulnerabilities, network-related threats, and asset visibility challenges.
Device Security Risks
- Weak or default passwords
- Outdated firmware
- Insecure configurations
- Weak authentication mechanisms
Network Security Risks
- Insecure network communications
- Unauthorized network access
- Device spoofing
- Network segmentation failures
Asset Visibility and Management Risks
- Unknown devices
- Unmanaged devices
- Rogue hardware
- Shadow IoT
Addressing these risks requires more than software updates and network security controls. Organizations must also maintain accurate visibility into every connected asset to detect unauthorized, unmanaged, and rogue devices before they become security threats.
IoT Security Challenge: Unknown and Unmanaged Devices
Every connected IoT device increases the organization’s attack surface. While many organizations focus on securing traditional endpoints, IoT devices often operate outside standard security controls, creating visibility gaps that attackers can exploit.
A connected printer, smart camera, wireless access point, or even a seemingly harmless coffee machine can become an entry point into the network if it is compromised, misconfigured, or operating without proper oversight. The challenge is that many organizations do not maintain a complete, up-to-date inventory of all connected devices in their environment.
To reduce risk, organizations commonly implement:
- Network segmentation
- Firewalls
- Access controls
- Network monitoring
While these controls are essential, their effectiveness depends on knowing what devices are actually present on the network. Unknown, unmanaged, or rogue devices can bypass security policies, introduce vulnerabilities, and create blind spots for security teams.
Effective IoT security begins with comprehensive asset visibility and continuous device discovery. Organizations must be able to discover, identify, classify, and continuously monitor every connected device and network-connected asset so that security policies can be applied consistently and unauthorized assets can be detected before they become a threat.
Why Traditional IoT Security Tools Fall Short
Many organizations rely on NAC, EDR, MDM, network monitoring platforms, and IoT management solutions to secure connected devices. While each provides valuable capabilities, they were designed to solve different security challenges. Because many of these solutions rely on software agents, network identifiers, or known device profiles, they may struggle to identify unmanaged, unauthorized, spoofed, or newly connected hardware.
Modern IoT security increasingly relies on behavior-based detection, anomaly detection, and device fingerprinting techniques to identify suspicious activity and previously unknown devices.
Without complete asset visibility, security teams may be unable to identify every device connected or maintain a complete asset inventory to the environment, creating blind spots that increase risk.
IoT Security Best Practices
Securing IoT devices requires more than traditional endpoint protection. Organizations need a layered approach that combines visibility, monitoring, and access control across the entire device lifecycle.
Key IoT security best practices include:
- Maintain an accurate, continuously updated asset inventory of all connected devices
- Change default passwords and enforce strong authentication
- Apply firmware and security updates regularly
- Segment IoT devices from critical business systems
- Monitor network activity for suspicious behavior
- Restrict device access based on role and function
- Identify and remove unauthorized or rogue devices
While each of these practices improves IoT security, their effectiveness depends on maintaining continuous visibility into connected assets. Without an accurate understanding of what devices are present, organizations cannot consistently enforce policies, prioritize vulnerabilities, or respond quickly to emerging threats.
Organizations must maintain an accurate, continuously updated asset inventory of all connected devices. While no single control eliminates risk, combining preventive, detective, and response capabilities significantly reduces exposure.
Sepio’s Approach to IoT Security
Effective IoT security begins with knowing exactly what devices are connected to your environment. However, traditional security tools often struggle to identify unmanaged, unauthorized, or spoofed devices, creating visibility gaps that increase cyber risk.
Sepio addresses this challenge by providing asset visibility at the physical layer. Its patented AssetDNA™ technology creates a unique hardware-based fingerprint for every connected asset, allowing organizations to accurately discover, identify, and classify IT, OT, IoT, and rogue devices. Because identification is based on physical-layer characteristics rather than software agents or network identifiers, organizations gain a more trusted and complete view of every connected asset.
By continuously discovering and verifying connected hardware, Sepio helps organizations detect unauthorized devices, reduce asset inventory gaps, strengthen policy enforcement, and respond more quickly to hardware-based threats.
Sepio’s asset inventory capabilities also support foundational security controls aligned with industry frameworks such as NIST, helping organizations maintain accurate device inventories, enforce policy controls, and reduce compliance gaps across IoT environments.
How Sepio Helps Secure IoT Devices and Networks
Sepio enhances IoT security by delivering a trusted asset inventory of connected assets and helping organizations identify risks that may be missed by traditional security tools.
Asset Visibility
- Continuously discovers managed, unmanaged, and rogue connected assets
- Builds a trusted asset inventory across IT, OT, and IoT environments
- Identifies devices using physical-layer characteristics instead of software agents
- Integrates with existing security and asset management platforms
Device Identification and Control
- Assigns every connected device a unique AssetDNA™ hardware identity
- Identifies devices regardless of operating system or network identifiers
- Detects spoofed, impersonating, or disguised hardware
- Improves asset inventory accuracy and device classification
Rogue Device Detection
- Detects unauthorized devices connected to the network
- Identifies shadow IoT assets that may bypass traditional controls
- Helps security teams uncover hidden attack paths and visibility gaps
- Supports rapid investigation and remediation
Automated Risk Response
- Enables automated response workflows based on trusted device identity
- Supports containment of unauthorized or high-risk hardware
- Continuously monitors for changes in device behavior and connectivity
- Reduces exposure to hardware-based attacks
Effective IoT Security Starts with Visibility
Effective IoT security depends on knowing exactly what devices are connected to your environment. Without complete asset visibility, unmanaged and rogue devices can create blind spots that increase cyber risk.
Sepio helps organizations discover, identify, classify, and continuously monitor every connected asset at the physical layer, providing the visibility needed to secure IoT, IT, and OT environments.
Talk to an expert to learn how Sepio can help safeguard your IoT devices, improve asset visibility, and protect your network from hardware-based attacks.
Talk to an expertFrequently Asked Questions
Common IoT security risks include default or weak passwords, outdated firmware, insecure configurations, unauthorized or unmanaged devices, insecure network connections, weak authentication, device spoofing, and limited visibility into connected assets. These weaknesses can allow attackers to compromise devices, move laterally across networks, steal sensitive data, or disrupt business operations.
Asset visibility is the foundation of effective IoT security because organizations cannot secure devices they do not know exist. Maintaining an accurate inventory of connected assets enables security teams to discover unauthorized devices, identify unmanaged or rogue hardware, enforce access policies, prioritize vulnerabilities, and continuously monitor network activity for potential threats.
IoT security focuses on protecting connected devices used across commercial, healthcare, retail, and enterprise environments, such as printers, IP cameras, and smart building systems. IIoT (Industrial Internet of Things) security focuses specifically on industrial environments where connected sensors, PLCs, robotics, and operational technology (OT) systems support manufacturing, energy, and critical infrastructure. While both require strong device visibility, authentication, and network security, IIoT security places greater emphasis on operational continuity, safety, and industrial control systems.
Network segmentation improves IoT security by isolating connected devices from critical business systems and limiting communication between network segments. If a device is compromised, segmentation helps reduce lateral movement, contains potential attacks, and minimizes the impact of malware or unauthorized access. Combined with continuous asset visibility, segmentation strengthens overall network security.
Zero Trust security assumes that no user, device, or connection should be automatically trusted. In IoT environments, this means continuously verifying device identity, enforcing least-privilege access, monitoring device behavior, and restricting communications based on risk. Applying Zero Trust Hardware Access principles helps reduce unauthorized access and limits the impact of compromised IoT devices.
Traditional security tools such as endpoint detection and response (EDR), mobile device management (MDM), and network access control (NAC) provide important security capabilities but may not identify every connected IoT device. Many organizations require continuous asset discovery and hardware-level visibility to detect unmanaged, unauthorized, or spoofed devices that can create security blind spots.
Organizations should secure every connected device that communicates across the network, including IP cameras, printers, wireless access points, badge readers, VoIP phones, HVAC systems, medical devices, industrial sensors, PLCs, point-of-sale systems, smart lighting, and building automation equipment. Every connected asset can expand the attack surface if it is not properly identified, monitored, and managed.
