The Internet of Things (IoT) has reshaped how businesses operate, connect with customers, and manage internal processes. From smart warehouses to healthcare monitoring systems, IoT has proven its potential in enhancing productivity and operational efficiency. However, this connectivity also introduces significant security concerns. With billions of connected devices transmitting sensitive data across networks, the attack surface for cyber threats grows wider every year.
In fact, according to a report by Statista, there are over 15.14 billion connected IoT devices in use globally as of 2023, with that number expected to reach over 29 billion by 2030. Despite this rapid growth, security remains one of the top concerns for business owners adopting IoT technologies. Many enterprises still lack a robust strategy to secure their connected assets.
This blog outlines the key security challenges in IoT, their impact on businesses, and how they can be addressed through smart strategies and reliable IoT app development practices.
Why IoT Security Matters in Business
IoT devices often function within broader networks, interacting with enterprise systems, user applications, cloud services, and third-party APIs. This level of integration makes them ideal for efficiency—but also highly vulnerable.
Key Risks:
• Data Breaches: A compromised device can leak critical information like user credentials, health records, or financial data.
• Operational Disruption: Malicious actors can disable devices or manipulate their behavior, affecting supply chains or automated workflows.
• Compliance Violations: Businesses handling regulated data (e.g., healthcare, finance) may face legal consequences if IoT systems fail to protect that data adequately.
A notable case in 2020 involved hackers exploiting vulnerabilities in connected security cameras, exposing the live feeds of over 150,000 devices. The breach not only compromised user privacy but also triggered legal scrutiny for the companies using those devices.
The increasing complexity of IoT ecosystems—ranging from sensors to edge devices to cloud interfaces—means that any security weakness can trigger a chain reaction across the network.
Top Security Challenges in IoT (And How to Solve Them)
1. Weak Device Authentication and Authorization
One of the most common security oversights is poor authentication. Many IoT devices are deployed with default or easily guessable passwords. Without strong identity controls, unauthorized users can gain access to devices and manipulate them.
Risks:
• Device hijacking
• Unauthorized data access
• Lateral movement across networks
Solution:
• Implement multi-factor authentication (MFA) for device and user access.
• Use token-based authentication protocols like OAuth 2.0 for secure API access.
• Create role-based access control (RBAC) systems to limit privileges based on user roles.
Strong authentication acts as the first gatekeeper in any secure IoT app development framework.
2. Unencrypted Data Transmission
IoT devices continuously send and receive data. If this data isn’t encrypted, it becomes easy for cybercriminals to intercept it using methods like man-in-the-middle (MITM) attacks.
Risks:
• Sensitive information theft
• Manipulation of data in transit
• Network injection attacks
Solution:
• Use TLS (Transport Layer Security) or SSL protocols for all communication.
• Secure messaging protocols like MQTT with SSL or CoAP over DTLS can be used in constrained environments.
• Implement end-to-end encryption between devices, gateways, and cloud platforms.
Encryption ensures that even if data is intercepted, it remains unusable to attackers.
3. Insecure Firmware and Software Updates
Without a secure update mechanism, attackers can introduce malicious firmware that controls the device’s behavior or extracts data.
Risks:
• Installation of unauthorized software
• Persistent control by threat actors
• Exposure of zero-day vulnerabilities
Solution:
• Use digitally signed firmware to validate the authenticity and integrity of updates.
• Enable over-the-air (OTA) secure update mechanisms with encryption.
• Implement update verification protocols to check versioning and source validation.
Secure updates are essential for maintaining device trustworthiness throughout its lifecycle.
4. Lack of IoT Network Segmentation
IoT devices are often connected to the same network as core enterprise systems. This increases the risk of an attack spreading from a weak IoT node to critical infrastructure.
Risks:
• Network-wide ransomware attacks
• Compromised access to ERP, CRM, or financial systems
• Data exfiltration at scale
Solution:
• Isolate IoT devices using virtual local area networks (VLANs) or dedicated subnets.
• Use firewalls and IoT gateways to filter traffic.
• Employ Zero Trust security models where no device is trusted by default—even inside the network.
Segmentation helps reduce the impact of a breach and contains threats before they escalate.
5. Limited Device Resources for Security
IoT devices are often lightweight and lack the computing resources needed for traditional security software. This results in stripped-down protections or none at all.
Risks:
• Inability to run antivirus or intrusion detection
• Difficulty in logging or monitoring activity
• Vulnerability to brute force attacks
Solution:
• Use lightweight encryption standards such as AES-128.
• Offload security tasks to edge gateways or cloud layers.
• Optimize firmware for secure operations without overloading the processor.
By balancing performance and protection, businesses can still secure devices without compromising functionality.
6. Vulnerabilities in Third-Party Libraries and Components
Most IoT devices and apps rely on third-party components for connectivity, analytics, or interface design. These external dependencies may contain hidden vulnerabilities.
Risks:
• Supply chain attacks
• Remote code execution
• Data leakage through insecure SDKs
Solution:
• Conduct regular code audits and vulnerability scans.
• Use software composition analysis (SCA) tools to track dependencies.
• Stay updated with patch management for all third-party components.
Vet every dependency to ensure it matches your security and compliance requirements.
Best Practices for Secure IoT App Development
A secure IoT solution requires more than just protected hardware—it requires a comprehensive security-first approach throughout the development lifecycle.
Key Best Practices:
• Adopt a secure-by-design methodology during app development.
• Use secure APIs and avoid hardcoding credentials in the codebase.
• Incorporate logging and monitoring tools to detect anomalies in real time.
• Follow regulatory frameworks such as HIPAA, GDPR, or ISO/IEC 27001, depending on your industry.
• Perform penetration testing and risk assessments before deployment.
• Encrypt stored and transmitted data at all levels.
By following these principles, businesses can reduce the likelihood of breaches and increase user trust in their connected products.
How Zorbis Supports Secure IoT App Development
Security is not a feature at Zorbis—it’s a foundation. Our IoT app development services prioritize protection at every layer, from device firmware to cloud interfaces.
Here’s how we support our clients:
• Custom IoT Security Architecture: Every app is designed with authentication, encryption, and compliance in mind.
• End-to-End Device Management: From onboarding to decommissioning, we help businesses maintain control.
• Secure APIs and Cloud Integration: We ensure that all communications are encrypted and verified.
• Cross-Industry Experience: Whether it's healthcare, retail, manufacturing, or logistics, we tailor security protocols to each sector’s needs.
With a team of developers, architects, and security specialists, Zorbis delivers IoT solutions that are not only functional but trustworthy.
Conclusion
As the number of connected devices continues to grow, so does the responsibility to keep them secure. For businesses, overlooking IoT security is no longer an option—it’s a risk that could cost millions in damages, downtime, and reputation loss.
The good news? These risks are manageable with the right approach. By understanding the core challenges and implementing proven strategies, organizations can confidently adopt IoT technology.
Whether you're planning to connect industrial machines or consumer products, the security of your IoT system begins with the foundation you build it on.
Looking for expert help?
Zorbis offers secure, scalable, and fully customized IoT app development services that keep your business connected—and protected.
