IoT Cyber Threats: Why Security Awareness Training Matters

The Internet of Things (IoT) is rapidly transforming industries, connecting everything from smart home devices to industrial automation. While these technologies offer convenience and efficiency, they also introduce serious cybersecurity risks.

According to Statista, the cost of cybercrime is expected to reach $15.63 trillion by 2029, with IoT devices becoming a prime target for cybercriminals. Hackers exploit unsecured devices to steal data, launch attacks, and disrupt critical operations. Yet, many organizations and individuals remain unaware of these risks.

Traditional security training focuses on phishing and password management, but IoT security requires a different approach. In this blog, we’ll explore the growing risks of IoT, why standard security training isn’t enough, essential security practices, and a real-world case study that highlights the urgent need for better protection.

The IoT Boom: Opportunities and Risks

IoT devices have transformed industries by improving automation, efficiency, and data collection. Smart factories use IoT sensors to monitor equipment, healthcare facilities rely on connected devices for patient care, and cities use IoT for traffic management and security systems.

To better understand IoT security risks and how to protect your connected devices, check out Keepnet blog on IoT Security Risks and Solutions: Protect Your Connected Devices.

However, this increased connectivity creates new attack surfaces. Many IoT devices lack strong security protections, making them easy targets for hackers.

Examples of IoT Security Risks

Let’s delve into real-world cases where poor IoT security led to serious breaches, exposing personal data, disrupting industries, and enabling large-scale cyberattacks.

1. Matrix Botnet Attack on IoT Devices (November 2024)

In November 2024, a cybercriminal group called “Matrix” hijacked vulnerable IoT devices, creating a massive botnet for DDoS-for-hire services. Exploiting unpatched vulnerabilities, they deployed the Mirai botnet malware, turning compromised devices into attack tools.

Matrix scanned cloud service provider IP ranges, targeting misconfigured and outdated IoT devices. China and Japan were the primary targets due to their high number of connected devices.

Key Lessons:

• Update IoT firmware to patch security flaws.
• Disable unnecessary remote access to prevent unauthorized control.
• Use strong passwords and MFA to protect devices.
• Maintain an IoT inventory to track security gaps.

This attack underscores the urgent need for stronger IoT security, as unpatched devices remain prime cyberattack targets (Source: The Hacker News).

2. Hacked Smart Cameras (2023)

In 2023, cybercriminals gained unauthorized access to home security cameras and baby monitors by exploiting weak or unchanged passwords. Some of these compromised devices were live-streamed online, exposing the personal lives of unsuspecting victims. This attack highlights the risks associated with default passwords and poor IoT security settings.

Key Lessons:

• Always change default passwords on IoT devices.
• Enable two-factor authentication (2FA) where possible.
• Disable remote access if not necessary.

This incident underscores the importance of basic security hygiene in IoT ecosystems, as cybercriminals continue to exploit poorly secured devices (Source: Parents.com).

3. Ransomware Attack on Gijón’s Bio-Energy Plant (2023)

In 2023, the RansomHub ransomware group gained access to the Supervisory Control and Data Acquisition (SCADA) system of Gijón’s Bio-Energy Plant in Spain. The attackers took control of the plant’s Digester and Heating system, demonstrating their ability to manipulate critical operations. If fully exploited, this could have led to severe disruptions in the plant's bio-energy production.

Key Lessons:

• Secure remote access to critical systems with multi-factor authentication.
• Conduct frequent security audits to identify and mitigate vulnerabilities.
• Use network segmentation to separate IoT control systems from general IT networks.

This attack reinforces the urgent need for stronger cybersecurity measures in critical infrastructure as ransomware groups continue to target industrial control systems (ICS) and IoT-connected facilities (Source: CybersecurityNews.com).

These incidents highlight the urgent need for stronger IoT security awareness and proactive cybersecurity measures to protect businesses and individuals from evolving cyber threats.

Why Traditional Security Awareness Training Isn’t Enough

Most security awareness training focuses on phishing, password security, and social engineering threats—important topics, but not sufficient for IoT security.

Why IoT Requires a Different Security Approach

• Many IoT Devices Have Weak Security

Unlike traditional computers, most IoT devices lack built-in antivirus, firewalls, and automatic updates, making them easier to exploit.

• One Compromised Device Can Endanger an Entire Network

A hacker doesn’t need access to a company’s main server—they can infiltrate through an unsecured IoT device and move through the network.

• Most IoT Users Lack Technical Knowledge

Employees and consumers don’t always know how to properly configure and secure IoT devices, making targeted security training essential.

To protect against ransomware, data breaches, and cyberattacks, businesses need IoT-specific security awareness training.

Key Elements of IoT Security Awareness Training

Many IoT attacks happen because of weak device settings, outdated software, insecure networks, and poor data protection. Security awareness training must focus on these risks to help users protect their devices and data. Below are the key areas every IoT security program should cover.

1. Secure Device Configuration

Many IoT devices come with weak default settings that hackers exploit. Security training should emphasize:

• Changing default passwords immediately.
• Disabling unnecessary features, such as remote access.
• Turning off Universal Plug and Play (UPnP), which can allow unauthorized connections.

2. Regular Firmware Updates

Many IoT cyberattacks target outdated software, as unpatched vulnerabilities provide easy entry points for hackers. However, many IoT devices lack automatic update features, relying on users to install security patches manually. Training should include:

• How to enable automatic updates when available
• Why regular firmware updates are crucial
• How to verify manufacturer security patches

3. Network Security for IoT Devices

IoT devices are only as secure as the networks they connect to. Training should teach:

• Using strong Wi-Fi encryption (WPA3 instead of WPA2)
• Setting up network segmentation to separate IoT devices from critical systems
• Avoiding public Wi-Fi for IoT device access and using VPNs for remote connections

4. Data Privacy and Compliance

Many IoT devices collect and store sensitive data. Security training should include:

• How to configure privacy settings to limit data collection
• Understanding compliance regulations like GDPR and CCPA
• Recognizing risks when connecting third-party apps to IoT devices

By applying these IoT security best practices, organizations and individuals can significantly reduce cyber threats.

Real-World IoT Cybersecurity Incident and Lessons Learned: Raptor Train Botnet Attack (Sept 2024)

In September 2024, researchers discovered a massive botnet infecting over 200,000 IoT and small office/home office (SOHO) devices. Linked to the Chinese nation-state group Flax Typhoon, the botnet had been active since May 2020, peaking at 60,000 active infections in June 2023.

Attackers hacked routers, IP cameras, and NAS devices using known and zero-day vulnerabilities. The malware—a modified Mirai variant called "Nosedive"—wasn’t persistent, meaning it disappeared after a reboot. However, with so many unsecured devices online, reinfection was easy.

Key Lessons:

• Patch IoT device vulnerabilities regularly to prevent exploitation.
• Monitor IoT devices for unusual activity and security risks.
• Use network segmentation to isolate critical systems from compromised devices.

This case highlights the urgent need for better IoT security, as hackers continue to exploit unpatched, internet-connected devices to build powerful botnets.

Best Practices to Secure Your Organization’s IoT Devices

To protect your organization from IoT-related cyber threats, proactive security measures are essential. Implementing the following best practices can help safeguard your devices and networks:

• Change Default Credentials – Replace factory-set passwords with strong, unique ones for each device.
• Keep Firmware Updated – Regularly apply security patches to fix vulnerabilities and prevent exploits.
• Segment IoT Networks – Separate IoT devices from critical business systems to contain potential breaches.
• Restrict Remote Access – Disable unnecessary remote management features to reduce attack surfaces.
• Monitor Device Activity – Continuously track IoT network traffic to detect unusual behavior.
• Enable Multi-Factor Authentication (MFA) – Add an extra layer of security for device access where possible.

By following these best practices, organizations can strengthen their IoT security posture and minimize cyber risks.

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