IoT security: data leaksWhat businesses must do to prevent

As I browse through digital headlines or scroll my news feeds, stories about IoT data leaks seem to pop up everywhere. It made me stop and think. With so many businesses relying on connected devices, how prepared are we really to defend this fast-growing network? From factory floors filled with smart sensors to small offices using Wi-Fi printers, I keep seeing risks as much as I see benefits. If you work with IoT or manage any business that’s embracing connected tech, I believe it’s time to look closely at how leaks happen and what actions we must take to stop them.

Why are IoT devices vulnerable to data leaks?

When I talk to business owners about security, IoT seems to confuse almost everyone at first. These devices can be simple, like a smart thermostat, or deeply complex, like an assembly robot with multiple sensors. Unlike traditional computers, many IoT devices have limited resources. That means:

• They might skip regular security updates.
• They often come with default, easily guessed passwords.
• Encryption might not run on them, due to small memory or limited CPU.
• Patching is hard when devices are distributed in many locations.

Many IoT data leaks happen because basic security steps are skipped during deployment or while devices are operating. And once a device is compromised, attackers can quietly grab sensitive information for months before anyone notices.

The weakest link often gives intruders their entry point.

Common mistakes I have seen

In my research and experience, three patterns usually show up in data leaks involving IoT:

• Failure to change default passwords translates into almost instant access for attackers.
• Devices shipped without encryption let data move in plain text, open to interception.
• No network segmentation means a breached sensor can lead attackers all the way to critical business systems.

Poor documentation and lack of visibility make it even harder for IT teams to spot risky devices before data seeps out. It’s clear to me that the danger grows when we treat IoT as set-it-and-forget-it technology.

What kind of information is at risk?

The type of data exposed depends on where and how your business uses IoT. But I’ve noticed the leaks almost always fall into one or more of these categories:

• Customer information (names, contact details, or even health data)
• Business secrets (machine settings, production data, or patent information)
• Operational data (employee movements, schedules, or voicemail logs)
• System credentials and access tokens

These details, if unprotected, can create huge legal, financial, or reputational headaches. I have yet to meet a business leader who wants that kind of attention.

Key steps businesses must take to prevent IoT data leaks

So what should a business do? Over time, I’ve come to rely on a focused set of steps, tested in different scenarios. Here is what I have observed works most effectively:

1. Map and inventory every device

The first line of defense is knowing what devices are connected, where they are, and what information they collect or transmit. Many companies, I find, are surprised by how many IoT endpoints are actually live. Keeping a real-time inventory prevents blind spots and makes patching and monitoring possible.

2. Change default credentials—always

Default factory logins are widely published online. I have seen them used in real-world attacks more times than I can count. Assign unique, strong passwords as soon as devices are installed. This simple step blocks the laziest—and often most successful—hacks.

3. Use encrypted communication

Data should always be encrypted while in transit, even inside the company’s private network. This stops anyone listening on the network from making sense of sensitive information. Many vendors now offer updates for older devices, adding encryption. I recommend prioritizing these upgrades, or replacing hardware if updates aren’t possible.

4. Segment networks

I learned the hard way that placing IoT devices in their own network, away from sensitive databases or critical business infrastructure, contains the impact of a breach. If an IoT device is compromised, attackers cannot move easily from it to more valuable systems. Most business-grade networks allow for easy segmentation with existing hardware.

5. Monitor for unusual behavior

Many early signs of a data leak appear as subtle changes: new devices responding on the network, a sudden spike in data transfers, or devices communicating at odd hours. Modern monitoring tools can spot these signs, but someone has to look at the alerts and act on them.

6. Apply patches and update firmware

Unpatched IoT devices are one of the top attack vectors year after year. That’s why I always urge setting up automated update checks. For devices that cannot update remotely, set reminders to check manufacturer updates and schedule maintenance visits. If a device can’t be updated at all, consider disconnecting it or phasing it out of service.

What about legal and privacy requirements?

For anyone handling customer information, I’ve found that laws and standards often demand more than just best practices—they require documented procedures and proof of action. Make sure you:

• Keep records of updates, password changes, and security settings applied to each device.
• Understand which devices handle personal or protected data.
• Have an incident response plan that covers IoT data leaks, including notifying authorities and customers when needed.

Following these steps not only reduces risk but also shows regulators and partners that security is taken seriously.

Staff training: the human factor

Even the best technology can’t help if your team is not on board. In my work, real issues arise when employees don’t understand the role IoT plays in security. That’s why I suggest regular, practical training covering:

• Recognizing unusual device behavior
• Reporting lost or stolen IoT hardware
• Spotting phishing emails aimed at IoT system admins
• Never writing down or sharing device logins

A well-informed team is your last, and sometimes only, defense.

Planning for growth: scaling security as you add devices

I’ve watched many businesses quickly add IoT tech during a growth spurt, only to find their earlier security steps no longer work. Before adding more devices, I think it’s smart to ask:

• Does our current network design still make sense?
• How are we going to update, monitor and retire devices that are older or no longer supported?
• Can we automate security checks and alerting for the new scale?

Final thoughts

Today, I see IoT technology as both a huge opportunity and a real risk for any business. Devices are multiplying faster than most security teams can keep up with. I am convinced that preventing leaks is less about locking down every endpoint and more about building habits—regular reviews, staff awareness, and refusing to settle for weak settings or shortcuts.

IoT data leaks are not some distant threat—they are a daily reality in the connected workplace. But with practical steps, clear planning, and a commitment to ongoing security, businesses can keep risks to a minimum and enjoy the real benefits that IoT promises.