The Hidden Dangers of IoT Devices—And Why IT Might Not Know They’re There

In part one of this series, we explored how IoT and OT devices have quietly embedded themselves into both our homes and our workplaces. Now, let’s talk about the real risks these connected devices pose—and why IT and security teams often don’t even see them coming.

It’s Not Just a Smart Lightbulb

At first glance, an IoT device seems harmless. A smart lightbulb. A conference room camera. A Wi-Fi-enabled thermostat. What threat could it possibly pose?

The answer is: a significant one.

Most IoT devices are powered by general-purpose operating systems like Linux or BSD. That means under the hood, they function much like any other connected system. Many come bundled with unnecessary software, have exposed ports, and include hardcoded credentials or open APIs—perfect entry points for attackers. Worse still, users have little visibility into what these devices are running, how they communicate, or if they’ve been compromised.

IoT’s Identity Crisis: Consumer or Enterprise?

The real kicker is that these devices aren’t always purpose-built for enterprise use.

A company might buy a smart TV for the lobby or a security camera for the warehouse from a local electronics store—often the same model sold to consumers. But these devices are now connected to corporate networks. They might talk to cloud services overseas, lack encryption, or rely on outdated firmware. And unlike enterprise IT gear, they usually weren’t designed with centralized management or patching in mind.

This creates a strange gray zone—where consumer-grade IoT becomes enterprise infrastructure, but without enterprise-level oversight.

Whitebox Woes: When Branding Creates Blind Spots

To make things worse, many IoT devices are rebranded versions of the same hardware. A manufacturer in Asia might create a whitebox smart doorbell and sell it to 10 different companies, each of which slaps on its own logo.

So, when a vulnerability is discovered in “Brand A’s” doorbell, it likely affects Brands B as well. That said, unless you know the exact chipset and software version, you might not even realize your devices are vulnerable—because the CVE (Common Vulnerabilities and Exposures) was issued under a different name.

This fractured ecosystem makes threat intelligence and vulnerability management incredibly difficult. It’s the cybersecurity equivalent of a needle in a stack of identical haystacks.

The Update Mirage: You Can’t Patch What Isn’t There

Even when vulnerabilities are identified, the road to remediation is often a dead end. Many IoT vendors:

• Don’t issue software updates at all.
• Require manual, device-by-device patching.
• Lock down their firmware to prevent user-initiated changes.
• Go out of business—or quietly rebrand—before issuing a fix.

Even more frustrating, some devices might appear to “update” but do nothing of substance, simply changing a version number or updating only cosmetic features. This gives organizations a false sense of security.

And when an IoT vendor shuts down or stops supporting a product, the device doesn’t stop functioning—it keeps chugging along, unmonitored and unprotected.

Out of Sight, Out of Mind: IT’s Visibility Challenge

Here’s the scary part: your IT team may have no idea these devices are even on the network.

IoT and OT often fall under the purview of other departments—facilities, operations, security, or even marketing. These teams procure and install devices without notifying IT. Sometimes they don’t even think to. To them, it’s just a camera or a sensor, not a potential attack surface.

And at home, it’s even murkier. Employees working remotely may have a smart TV, Alexa device, and gaming console all sharing the same Wi-Fi network as their work-issued laptop. A compromise of one could open the door to lateral movement—or data exfiltration.

Real-World Breaches Are Already Happening

This isn’t theoretical. Attackers are already exploiting the blind spots created by IoT and OT.

• In one well-publicized case, a casino’s network was compromised via a smart fish tank thermometer.
• In another, hackers accessed a corporate database by pivoting through a connected coffee machine.
• In critical infrastructure environments, compromised ICS and SCADA systems have been used to disrupt water treatment, energy production, and even traffic flow.

These aren’t edge cases—they’re warnings.

What Security Leaders Should Do Next

So how do we defend against an attack surface we often don’t control?

Start by reframing your mindset:

• Asset discovery is non-negotiable. If you don’t know what’s on your network, you can’t secure it. Invest in tools that go beyond endpoint detection and can identify IoT and OT devices by behavior and traffic patterns.
• Segment aggressively. Never let IoT and OT devices sit on the same network as core systems. Use VLANs, firewalls, and zero trust principles to limit exposure.
• Push for policy. Work with facilities, operations, and even HR to ensure there’s a clear procurement process for connected devices. If it connects to your network, it should be approved and managed like any other asset.
• Plan for the unpatchable. If a device can’t be updated, consider retiring it—or isolate it behind strict access controls.

It’s Not Just IT’s Problem Anymore

The rise of IoT and OT has blurred the boundaries of cybersecurity responsibility. It’s no longer enough for IT to protect laptops and servers. The real attack surface includes everything from vending machines to industrial sensors—and many of them are already inside the firewall.

Security leaders must broaden their threat model, educate business stakeholders, and bring shadow technology into the light. Because the next big breach may not start with a phishing email—it might start with a doorbell.