IoT Security Risks for Small Businesses

Smart thermostats, security cameras, connected printers, point-of-sale systems – IoT devices are everywhere in modern businesses. They’re convenient, but each one is a potential entry point for attackers. Many of these devices shipped with weak security, and they often go unpatched for years.

Why IoT Devices Are Vulnerable

Weak defaults. Many IoT devices ship with default passwords like “admin” or “password1” and no requirement to change them.

Rare updates. Unlike your laptop, most IoT devices don’t auto-update. Some manufacturers stop releasing firmware updates entirely after a year or two.

Limited security features. These devices run on minimal hardware with stripped-down operating systems. Many can’t run antivirus software or support encryption.

Shadow IT. Employees bring personal smart devices to work – fitness trackers, smart speakers, personal security cameras. These connect to your network without going through IT security review.

How IoT Attacks Affect Your Business

Network Entry Points

A compromised IoT device gives attackers a foothold on your network. From there, they can move laterally to servers, databases, and workstations containing sensitive data. The 2017 casino hack that used a smart fish tank thermometer to access the network is a well-known example.

Operational Disruption

An attacker who gains control of connected building systems can disrupt heating/cooling, inventory management, production equipment, or access control systems. The business impact ranges from inconvenience to complete operational shutdown.

Ransomware

IoT devices can be locked down and held for ransom just like computers. Security cameras, point-of-sale systems, and industrial control systems have all been targeted.

DDoS Botnets

Compromised IoT devices can be recruited into botnets that attack other targets. The Mirai botnet, built from IoT devices, took down major internet services in 2016. Your devices could be participating in attacks without you knowing.

Warning Signs of a Compromised IoT Device

• [ ] Device settings have changed without explanation
• [ ] Unexpected spikes in network traffic
• [ ] Devices running slower than usual or crashing frequently
• [ ] Security software flagging unusual connections
• [ ] Unfamiliar devices appearing on your network
• [ ] A device contacting unknown external servers

Securing Your IoT Devices

Inventory and Assess

• [ ] Catalog every connected device on your network (use network scanning tools)
• [ ] Include non-obvious devices: smart TVs, printers, HVAC controls, badge readers
• [ ] Note the manufacturer, model, firmware version, and last update date for each
• [ ] Remove or replace devices that are no longer supported by the manufacturer

Segment Your Network

• [ ] Put IoT devices on a separate network segment (VLAN or guest network)
• [ ] Prevent IoT devices from communicating directly with systems containing sensitive data
• [ ] Monitor traffic between segments for unusual patterns

Update and Patch

• [ ] Check for firmware updates monthly
• [ ] Enable automatic updates where the device supports it
• [ ] Replace devices that no longer receive security updates

Secure Credentials

• [ ] Change all default passwords immediately upon setup
• [ ] Use unique, strong passwords for each device
• [ ] Store IoT device passwords in your password manager
• [ ] Disable any remote management features you don’t actively use

Monitor

• [ ] Deploy network monitoring that covers IoT device traffic
• [ ] Set alerts for unusual connection patterns or data volumes
• [ ] Log access to IoT device management interfaces
• [ ] Consider IoT-specific security solutions that can fingerprint and profile devices

Establish Policies

• [ ] Create a policy for connecting new devices to the company network (no unapproved devices)
• [ ] Require IT approval before any new IoT device is deployed
• [ ] Train employees on the risks of connecting personal smart devices to the work network
• [ ] Include IoT devices in your regular security audits

Buying IoT Devices: What to Look For

• Does the manufacturer have a track record of releasing security updates?
• Does the device support encryption for data in transit?
• Can you change the default credentials?
• Does it allow you to disable unnecessary features and services?
• Is there documentation on the device’s security architecture?

Avoid unbranded, bargain-bin IoT devices. The money you save upfront isn’t worth the security risk they introduce.