By 2030, it’s estimated there will be over 29 billion connected devices worldwide, a staggering figure that underscores how deeply the Internet of Things (IoT) is woven into the fabric of modern life. From smart thermostats and wearable fitness trackers to complex industrial sensors and connected healthcare devices, IoT is revolutionising industries, streamlining operations and transforming how businesses interact with data. Yet, beneath the surface of this technological marvel lies a hidden risk: every connected device is a potential entry point for cyber threats. While IoT drives unparalleled efficiency, cost savings and innovation, it also expands the attack surface for malicious actors. This double-edged sword presents both immense opportunities and significant vulnerabilities, demanding that businesses balance progress with proactive security strategies.

The Efficiency Edge

The IoT is more than just a technological trend; it’s a catalyst for redefining how businesses operate. At its core, IoT enables real-time data collection from interconnected devices, providing insights that drive smarter, faster decision-making. Take predictive maintenance in manufacturing, for example. Sensors embedded in machinery continuously monitor performance, flagging potential issues before they escalate into costly breakdowns. This not only reduces downtime but also extends the lifespan of critical equipment, saving businesses both time and money.

Operational efficiency is another key benefit. In logistics, IoT-powered tracking systems allow companies to monitor fleet movements in real time, optimise delivery routes and reduce fuel consumption. Supply chains, once rigid and reactive, have become agile and responsive, thanks to IoT-enabled automation. Energy management is also revolutionised—smart grids and connected building systems adjust lighting, heating and cooling based on real-time occupancy data, significantly cutting energy costs.

Beyond the back-end, IoT is enhancing customer experiences. Retailers like Zara leverage IoT to track inventory in real time, ensuring popular items are always in stock. In healthcare, connected devices such as wearable monitors enable personalised treatment plans, improving patient outcomes while reducing the strain on medical facilities.

Consider Amazon’s fulfilment centres as a case study. The company employs a sophisticated network of IoT-enabled robots and sensors to streamline warehouse operations. These systems optimise inventory storage, automate the movement of goods, and coordinate human-robot workflows, allowing Amazon to maintain its rapid delivery promises while reducing operational costs.

The Vulnerability Trap

While the IoT offers remarkable efficiencies, it also introduces a complex web of vulnerabilities. Every connected device represents a potential entry point for cybercriminals. The more devices a business integrates, the larger its attack surface becomes, making it increasingly difficult to secure every node within a network. Often, businesses overlook basic security measures for seemingly innocuous devices, leaving them exposed to exploitation.

The risks go beyond data breaches. IoT vulnerabilities can trigger real-world consequences with tangible impacts. Consider smart grids, which manage power distribution using connected sensors and automated controls. A cyberattack on such a system could cause widespread blackouts, disrupt critical infrastructure, and even endanger lives. In 2015, Ukraine experienced a large-scale power outage directly linked to a sophisticated cyberattack targeting its energy grid—one of the first known instances where hackers caused a blackout using IoT vulnerabilities.

A notable case highlighting IoT’s security pitfalls is the 2021 Verkada hack. Hackers gained access to over 150,000 security cameras in hospitals, factories, prisons, and even Tesla facilities. They exploited administrative credentials left unsecured online, allowing them to view live footage and, in some cases, access internal networks. This breach not only compromised sensitive data but also exposed physical security vulnerabilities.

Emerging threats are equally alarming. The Mirai botnet attack in 2016 leveraged thousands of poorly secured IoT devices—like routers and cameras—to launch massive, distributed denial-of-service (DDoS) attacks, crippling major websites and online services globally. Ransomware is also evolving, now targeting IoT ecosystems to lock down entire operational infrastructures rather than just individual files.

Beyond Traditional Security Advice

As IoT ecosystems grow in complexity, traditional security measures are no longer sufficient. Businesses are now adopting innovative strategies to stay ahead of emerging threats. One key shift is towards Zero Trust Architecture (ZTA), a model built on the principle of ‘never trust, always verify’. In a Zero Trust environment, no device—whether inside or outside the corporate network—is trusted by default. Every connection request is continuously authenticated and authorised. For example, Google’s BeyondCorp framework applies ZTA, allowing employees to securely access resources from any location without relying solely on traditional VPNs.

Artificial Intelligence (AI) and Machine Learning (ML) are also revolutionising IoT security. AI-driven tools can analyse vast amounts of data in real time, identifying anomalies that might indicate a breach before damage occurs. Darktrace, a UK-based cybersecurity firm, uses ML algorithms to detect subtle behavioural changes in IoT networks, flagging threats that would typically go unnoticed by conventional systems.

In supply chains, decentralised security models like blockchain are gaining traction. Blockchain’s immutable ledger can secure IoT transactions, ensuring data integrity and transparency. Companies like IBM are leveraging blockchain in their supply chain solutions to prevent tampering and fraud.

Regulatory frameworks are also evolving. The forthcoming EU Cyber Resilience Act aims to impose stricter security requirements on IoT manufacturers, pushing businesses to adopt more robust security practices from the ground up. Ultimately, securing IoT environments requires a multi-layered approach, blending cutting-edge technology with regulatory compliance to outpace cyber threats.

The Strategic Balancing Act

To fully harness the potential of the IoT while mitigating its inherent risks, businesses must adopt a strategic, balanced approach. This begins with a comprehensive risk-reward analysis, assessing not just the return on investment (ROI) from IoT deployments but also the potential costs of security breaches. Weighing efficiency gains against the financial and reputational damage of a cyberattack helps businesses prioritise security as an integral part of IoT adoption, rather than an afterthought.

Leadership involvement is critical. IoT security isn’t solely the domain of IT departments; it demands oversight from top executives and board members. Strong governance frameworks, driven by leadership, ensure that security strategies are embedded into business operations from the outset. Organisations like Maersk, after suffering a devastating cyberattack in 2017, have since prioritised cybersecurity at the executive level, integrating risk management into core decision-making.

Looking ahead, the future of IoT security will depend on whether innovations in cybersecurity can keep pace with rapid technological advancements. While AI-driven defences and stricter regulations show promise, maintaining this balance will require continuous adaptation, proactive planning, and a culture of security awareness across all levels of business.

Catalyst for Growth: Vector for Potential Threats

The IoT stands as both a catalyst for business growth and a vector for potential threats—a true double-edged sword. On one side, it offers transformative benefits: enhanced efficiency, data-driven insight, and unparalleled operational agility. On the other, it exposes businesses to complex security risks, expanding the attack surface with every new connected device.

However, this duality need not be a deterrent. The key lies in striking a strategic balance, embracing IoT’s potential while proactively mitigating its vulnerabilities. Businesses must view security not as a barrier to innovation, but as an enabler of sustainable growth.

By fostering a culture of cybersecurity, investing in advanced protective measures, and embedding security into leadership strategies, organisations can turn IoT’s double-edged sword into a well-balanced tool for success. In essence, IoT’s interconnectedness is both its greatest strength and its most significant challenge—but with the right approach, it can redefine what’s possible for the future of business.

And what about you…?   

  • How is your organisation currently leveraging IoT to improve efficiency, and have you assessed the potential security risks associated with these devices?
  • How involved is your leadership team in overseeing IoT security, and do you believe cybersecurity is prioritised at the right level within your organisation?