IoT Security Concerns in 2025: What Every Business Leader Needs to Know

After spending years in the trenches of IoT security at NewSky Security, I’ve witnessed firsthand how the threat landscape has evolved from theoretical vulnerabilities to sophisticated, targeted attacks that can cripple entire business operations. The sobering reality is that most organizations are woefully unprepared for the security challenges that come with their connected device deployments.

I’m writing this because I’ve seen too many businesses treat IoT security as an afterthought—a checkbox to tick rather than a fundamental business imperative. The consequences of this mindset are becoming increasingly severe, and in 2025, the stakes have never been higher.

The Attack Surface Has Exploded Beyond Recognition

When we first started addressing IoT security challenges, the typical enterprise might have had a few dozen connected devices scattered across their operations. Today, I regularly work with organizations that have thousands of IoT endpoints, each representing a potential entry point for malicious actors. What keeps me up at night isn’t just the sheer number of devices—it’s the diversity and complexity of the attack vectors they create.

Unlike traditional IT infrastructure where you’re primarily securing servers, workstations, and network equipment, IoT environments present a fundamentally different challenge. You’re dealing with devices that often have limited processing power, minimal security features, and are deployed in physically accessible locations. Many of these devices were designed with functionality and cost as primary considerations, with security treated as a secondary concern.

I’ve investigated breaches where attackers gained access to corporate networks through compromised smart thermostats, industrial sensors, and even connected coffee machines. The attack surface isn’t just larger—it’s more diverse and harder to monitor than anything we’ve dealt with before.

The Convergence of IT and OT Creates New Vulnerabilities

One of the most significant shifts I’ve observed is the convergence of Information Technology (IT) and Operational Technology (OT) systems. Traditionally, industrial control systems, manufacturing equipment, and critical infrastructure operated on isolated networks. Today, business demands for real-time data and remote monitoring have connected these systems to corporate networks and the internet.

This convergence has created unprecedented security challenges. OT systems were designed for reliability and uptime, not security. Many industrial devices run on legacy protocols that lack basic authentication mechanisms. I’ve encountered manufacturing facilities where critical production equipment can be accessed and controlled through simple network scans.

The implications extend far beyond data breaches. In OT environments, security failures can result in physical damage, safety hazards, and operational shutdowns that cost millions of dollars per hour. I’ve worked with organizations that discovered their production lines could be manipulated by external attackers, creating both financial and safety risks that traditional cybersecurity frameworks weren’t designed to address.

Device Lifecycle Management: The Overlooked Security Crisis

Perhaps the most underestimated security challenge in IoT deployments is device lifecycle management. In our experience at NewSky Security, most organizations have poor visibility into their IoT device inventory, inconsistent update processes, and no clear strategy for end-of-life device management.

I regularly encounter environments where devices are running firmware that’s years out of date, with known vulnerabilities that have published exploits. The problem isn’t just technical—it’s operational. Unlike traditional IT equipment that’s typically managed by centralized teams, IoT devices are often deployed and managed by operational staff who may not have cybersecurity training.

The challenge is compounded by the longevity of many IoT devices. While you might replace laptops and servers every few years, industrial sensors and building automation systems are expected to operate for decades. I’ve seen critical infrastructure running on devices that are no longer supported by their manufacturers, creating permanent security vulnerabilities that can’t be patched.

Device provisioning and decommissioning present additional risks. I’ve investigated incidents where decommissioned devices were sold or disposed of without proper data wiping, exposing sensitive operational information. In other cases, devices were deployed with default credentials that were never changed, creating easily exploitable entry points.

The Supply Chain Security Nightmare

The global nature of IoT device manufacturing has created supply chain security challenges that are nearly impossible to fully mitigate. Most IoT devices contain components from multiple suppliers, run software with numerous third-party dependencies, and are manufactured in facilities that may not meet your organization’s security standards.

I’ve seen cases where malicious code was inserted into devices during the manufacturing process, creating backdoors that were discovered only after widespread deployment. The challenge isn’t just malicious insertion—it’s also the unintentional inclusion of vulnerable components or software libraries.

The complexity of modern IoT supply chains makes it extremely difficult to verify the security posture of every component in your devices. Even well-intentioned manufacturers may not have complete visibility into their own supply chains. This creates a situation where organizations are deploying devices with unknown security characteristics into their most critical environments.

Data Privacy and Regulatory Compliance Complexities

The data collection capabilities of IoT devices have created privacy and compliance challenges that many organizations are struggling to address. IoT devices often collect far more data than necessary for their primary function, and this data frequently includes personally identifiable information or sensitive operational details.

I’ve worked with organizations that discovered their IoT deployments were inadvertently violating privacy regulations because they hadn’t properly assessed what data their devices were collecting and how it was being processed. The challenge is compounded by the fact that many IoT devices collect data continuously, creating massive datasets that are difficult to manage and protect.

Cross-border data transfers add another layer of complexity. Many IoT platforms process data in cloud environments that span multiple jurisdictions, each with different privacy and data protection requirements. I’ve seen organizations face significant compliance challenges when they realized their operational data was being processed in countries with different regulatory frameworks.

Network Security in Heterogeneous IoT Environments

Traditional network security approaches break down in IoT environments. The sheer diversity of devices, protocols, and communication patterns creates challenges that conventional firewalls and intrusion detection systems weren’t designed to handle.

I regularly encounter networks where IoT devices are communicating using protocols that security teams don’t understand, making it impossible to properly monitor and control traffic. Many IoT devices use proprietary protocols or implement standard protocols in non-standard ways, creating blind spots in network monitoring.

The intermittent and unpredictable communication patterns of many IoT devices make it difficult to establish baseline behaviors for anomaly detection. Unlike traditional network traffic that follows predictable patterns, IoT communications can vary dramatically based on environmental conditions, operational schedules, and device health.

The Human Factor: Training and Awareness Gaps

One of the most significant security vulnerabilities in IoT deployments isn’t technical—it’s human. In my experience, most organizations haven’t adequately trained their staff on IoT security best practices. The people responsible for deploying, configuring, and maintaining IoT devices often lack the cybersecurity knowledge necessary to do so securely.

I’ve seen critical security vulnerabilities introduced through well-intentioned configuration changes made by operational staff who didn’t understand the security implications of their actions. In other cases, devices were deployed with insecure configurations because the installation teams weren’t aware of the security features available.

The problem is compounded by the fact that IoT security requires collaboration between traditionally separate teams—IT security, operations, facilities management, and others. These teams often have different priorities, vocabularies, and risk tolerances, making it difficult to implement consistent security practices.

Incident Response in IoT Environments

When security incidents occur in IoT environments, the response is significantly more complex than traditional IT incidents. IoT devices are often deployed in remote or inaccessible locations, making physical investigation difficult. Many devices have limited logging capabilities, making forensic analysis challenging.

I’ve responded to incidents where compromised IoT devices were used as pivot points for broader network attacks, but the limited visibility into device behavior made it difficult to determine the scope and timeline of the compromise. In operational environments, the need to maintain uptime often conflicts with security response procedures, creating difficult decisions about whether to isolate or shut down compromised systems.

The distributed nature of IoT deployments means that incidents can have cascading effects across multiple systems and locations. I’ve seen cases where a security incident at one facility affected operations at remote locations through interconnected IoT systems.

Building Resilient IoT Security Programs

Despite these challenges, organizations can successfully secure their IoT deployments with the right approach. The key is recognizing that IoT security requires a fundamentally different strategy than traditional cybersecurity.

Start with comprehensive asset discovery and inventory management. You can’t secure what you don’t know exists. Implement automated discovery tools that can identify and catalog IoT devices across your environment, including shadow IT deployments that may have been implemented without security oversight.

Develop security standards specifically for IoT deployments. Traditional IT security policies often don’t address the unique characteristics of IoT devices. Create guidelines for device selection, configuration, deployment, and maintenance that account for the operational realities of your environment.

Implement network segmentation strategies that isolate IoT devices from critical systems while still allowing necessary communication. This requires understanding the communication requirements of your devices and designing network architectures that provide security without impeding functionality.

The Path Forward: Proactive Security by Design

The IoT security landscape will continue to evolve, but the fundamental principles remain constant. Security must be integrated into every aspect of your IoT strategy, from device selection through deployment and ongoing management. The organizations that succeed will be those that treat IoT security not as a technical problem to be solved, but as a business capability to be developed and maintained.

At NewSky Security, we’ve learned that the most effective IoT security programs are those that balance technical controls with operational realities. The goal isn’t perfect security—it’s appropriate security that enables your business objectives while managing risk to acceptable levels.

The threat landscape will continue to evolve, and new vulnerabilities will emerge. But with proper planning, implementation, and ongoing management, organizations can harness the power of IoT while maintaining the security posture necessary to protect their operations, data, and reputation.

The choice isn’t whether to embrace IoT—that decision has already been made by market forces and competitive pressures. The choice is whether to do so securely, with full awareness of the risks and appropriate controls in place. The time for treating IoT security as an afterthought has passed. In 2025, it’s a business imperative that can’t be ignored.