The Internet of Things (IoT) has completely reshaped how organizations of all sizes do business. In mid-market environments especially, IoT devices can level the playing field—providing real-time insights, automating routine tasks, and enhancing productivity without the massive budgets large enterprises command. But for every advantage, there’s a parallel risk: every “smart” sensor or connected camera is another doorway into your network. Below, we’ll explore why IoT is so transformative, where security pitfalls often lurk, and how to build a practical plan to keep threats at bay.
IoT devices can range from industrial sensors on a manufacturing floor to “smart” thermostats in an office building. What they share is the ability to collect, transmit, and sometimes act on data in real time. For mid-market companies, this can unlock:
Yet, the very connectivity that makes IoT so useful also turns it into a favorite target for cybercriminals. A single vulnerable device can open the door to your entire network. For instance, imagine installing 30 connected sensors to streamline a production line—only to find out the supplier rarely releases security patches. Suddenly, your entire operation hinges on whether these sensors can withstand an attacker’s exploit.
Securing traditional IT infrastructure (like desktop computers and servers) follows well-established best practices: patch regularly, run antivirus software, and segment critical systems. IoT devices, however, pose unique challenges:
Minimal Processing Power
Many sensors and cameras are built to be as cost-effective as possible, leaving little room for robust security features or encryption. Attackers can exploit these “bare-bones” designs.
A Diverse Ecosystem
IoT encompasses countless manufacturers, each with different operating systems, update cycles, and default settings. One device might support the latest encryption, while another offers only minimal security options.
Supply Chain Risks
If you buy a bargain-basement device with outdated firmware—or if your vendor’s code has hidden vulnerabilities—you could be effectively installing a Trojan horse in your own environment. Vetting each supplier’s security track record isn’t always easy, but skipping that step can be costly.
Interconnected Systems
IoT devices rarely live in a vacuum. They often communicate with cloud dashboards, mobile apps, or on-prem servers. A compromised device can lead attackers straight into the heart of your network, pivoting from a single sensor to critical databases.
Bridging the Gaps: Mid-market companies often have lean security teams, meaning they’re less likely to have a dedicated IoT specialist. This can create blind spots, where new devices get deployed rapidly (because they’re a “great solution”) without rigorous security checks.
A few years back, a casino famously got hacked through a “smart” fish tank thermometer. Attackers exploited the device to pivot to the casino’s high-roller database. Although the device itself seemed harmless—a thermometer in a fish tank—it ran outdated software that gave criminals a foothold in an otherwise secure environment.
This example might sound extreme, but it underscores a key truth: any connected device can be the weakest link. For mid-market companies that rely on connected systems to stay competitive, ignoring these risks can be a recipe for disaster.
Attackers know that IoT devices can offer an easy backdoor. Campaigns like SocGholish and Lumma Stealer typically begin with phishing or malicious websites, but once they identify a vulnerable IoT endpoint, they can exploit it to move deeper into a network. Meanwhile, the Matanbuchus Loader acts as a “dropper” for additional malware, escalating an initial breach into ransomware or data theft.
What makes these threats particularly concerning? Some rely on known vulnerabilities that remain unpatched on certain IoT devices. Others utilize zero-day exploits, meaning there’s no existing fix at the time of discovery. And if your device doesn’t support security updates at all, you’re left wide open.
Beyond malware campaigns, it’s critical to track vulnerabilities disclosed for systems you use. Attackers often scan the internet to find unpatched targets within days—or even hours—of a vulnerability going public. Some examples include:
Keeping an eye on these known exploits and applying patches quickly can make a huge difference. Time to patch is often the deciding factor between a non-event and a full-scale breach.
Mid-market organizations are attractive to cybercriminals for a few reasons:
In other words, you have data worth stealing (and processes worth ransoming) but less internal capacity to lock it all down. Attackers see an opportunity.
Start by listing all IoT devices, firmware versions, and their locations on your network. You can’t secure what you don’t know exists.
Keep IoT traffic separate from core systems. If a sensor gets compromised, attackers can’t immediately jump to HR or finance data.
The simplest vulnerability is a default login. Change all device passwords and ensure employees do the same if they manage any IoT endpoints.
Enable auto-updates where possible, or schedule regular firmware checks. Attackers rely on the fact that many organizations don’t apply patches quickly.
Before purchasing or deploying IoT devices, review their security track records. A quick checklist might include:
Adopt a zero-trust approach where every device must authenticate and prove it should be communicating, rather than assuming it’s harmless just because it’s on your network.
Even with these steps, IoT threats evolve fast—and you might not have a round-the-clock security ops center. Managed Extended Detection and Response (XDR) can help:
For mid-market businesses juggling multiple IT priorities, Managed XDR might be the difference between a quiet weekend and a weekend spent cleaning up a massive breach.
Q: How do I balance cost and security in choosing IoT devices?
A: Look for vendors with a proven track record of timely updates. Cheaper isn’t always worse, but ask about security features like encryption, user authentication, and firmware patch processes.
Q: Isn’t segmenting networks overkill for a small company?
A: Network segmentation can be done at almost any scale. Even simple VLAN or firewall rules can limit how far an attacker can move if they compromise a single IoT device.
Q: Do I need to replace all my existing IoT devices if they’re not secure by design?
A: Not necessarily. Start by patching what you can, replacing the most vulnerable or outdated devices first, and configuring stricter network rules around those you can’t replace immediately.
IoT presents a massive opportunity for mid-market companies to innovate, automate, and compete effectively with bigger players. However, ignoring the security pitfalls can be a costly mistake. If you’re unsure how to manage firmware updates, or you lack the resources for around-the-clock threat hunting, we’re here to help.
Contact us today to learn more about our Managed Extended Detection and Response solutions tailored for mid-market environments. With continuous monitoring, real-time threat intelligence, and rapid incident response, we’ll help ensure that every device—and every piece of data—stays exactly where it belongs: in your hands, not a cybercriminal’s.
IoT devices might be small, but their impact—good or bad—can be enormous. By taking thoughtful steps to secure your network, vetting device vendors, and leveraging solutions like Managed XDR, you’ll tap the power of IoT without setting out a welcome mat for attackers. After all, technology should work for you, not against you.