Smart devices now power operations across industries—from hospital wards to factory floors, boosting efficiency and insight. They help you track performance, automate tasks, and react faster to changing conditions. But these gains come with a known risk: every connected device adds a potential weak spot in your infrastructure.

That risk grows when devices get added without IT’s involvement. A 2025 IoT Security Risks study found more than 50% of IoT devices in business environments carry critical vulnerabilities, and one in three data breaches today involves such devices. That clearly shows that overlooked endpoints are prime targets.

That brings us to shadow IT: hardware, apps, or systems that teams deploy without passing through your official approval process. It feels helpful in speeding things up, but it hides security flaws. 

Consider this: SonicWall’s 2025 Cyber Threat Report shows IoT-based attacks spiked 124% in 2024. That means attackers are increasingly targeting device types you might never realize are connected. Unless you uncover and secure every device, even those introduced by non-IT teams, you’re leaving the door open. To protect operations, you need control over every endpoint, not just the ones in your asset list. Let’s build that visibility, lock things down, and make sure every device helps your business.

 

 

THE COMMON RISKS BEHIND MOST IoT INCIDENTS

Even though manufacturing floors and hospital systems look different on the surface, most IoT-related security issues stem from the same root causes. These risks build up quietly and once they’re exploited, the damage spreads fast.

Here are five of the most common weaknesses that impact IoT network security:

1. Unmanaged Devices Are Everywhere

Smart sensors, security cameras, and handheld scanners are just a few examples of devices that often get deployed without notifying IT. Their low cost and easy setup make them attractive, especially to teams focused on solving immediate problems.

But what starts as a quick fix can snowball. As more devices go unregistered, the network grows in ways you can’t see or control. These hidden assets become blind spots. You can’t apply policies or protections to devices you don’t know exist. And that’s where real risk starts.

2. Flat or Poorly Segmented Networks

If someone gains access through one device, how far can they go? If your IoT devices share the same network as your finance systems or production databases, the answer is usually: too far.

Many teams skip network segmentation when deploying new devices, especially in environments where speed matters more than process. But that decision can come back hard. A flat network makes it easier for attackers to move laterally, hopping from one endpoint to another until they reach something valuable. Segmentation won’t stop an attack from starting, but it can keep a minor breach from turning into a business-wide crisis.

3. Outdated Firmware and No Update Schedule

It’s common for IoT devices to ship with weak default credentials, outdated firmware, or both. Even worse, not all vendors provide regular updates or notify customers of known issues. Without a system in place to track patch availability and apply updates across all devices, many organizations end up running tools that were vulnerable the day they were installed and still are.

Unlike servers or workstations, IoT hardware often lacks built-in security features. If you’re not maintaining them, they become long-term exposure points.

4. Unknown Remote Access Channels

Some vendors enable remote access by default for support or maintenance purposes. That access might be undocumented, or worse, left open after deployment. In manufacturing or healthcare environments, where multiple third parties operate side by side, these open channels can go unnoticed.

Without logging and monitoring, you won’t know who can reach your systems—or when they’re doing it. This isn’t just an external risk either. Unsecured remote access can also be exploited by insiders or compromised accounts, turning a convenience into a threat.

5. No Inventory or Visibility Strategy

You can’t secure what you don’t know exists. Yet many organizations lack a centralized inventory of IoT devices. 

This lack of visibility makes it impossible to apply consistent policies, monitor for suspicious behavior, or investigate issues when they arise. It also complicates compliance, especially in regulated industries where device tracking is non-negotiable.

These risks mentioned aren’t isolated. They feed into each other. Unmanaged devices live on flat networks and miss critical patches. And all of this creates an environment where attackers have too many options. Improving your IoT network security starts with closing these gaps. Because when you bring shadow IT into the light, you don’t just reduce risk, you take control.

 

 

Healthcare: Where Downtime Isn’t an Option

How Smart Devices Support Patient Care

Hospitals and clinics rely on connected devices to support faster diagnoses, real-time monitoring, and more efficient workflows. Examples include:

• Infusion pumps that regulate medication delivery
• Vital sign monitors linked to central dashboards
• Imaging devices and diagnostic platforms that send data directly to EHR systems
• Wearable sensors for post-discharge monitoring

The upside: more accurate care with faster response times.
The downside: more devices you need to secure—and many are easy to miss.

Key Risks in Healthcare IoT

• Patient Safety: If a connected device malfunctions or gets tampered with, it can cause treatment delays or errors.
• Data Breaches: IoT endpoints often process or transmit protected health information (PHI), making them a target for attackers.
• Compliance Violations: A breach tied to an unsecured device can result in serious HIPAA penalties.
• Service Interruptions: Many hospital systems aren’t built for failover. One compromised device can cause cascading disruptions.

Shadow IT on the Clinical Floor

Nurses and physicians often turn to personal tablets or mobile apps to check schedules, take notes, or manage simple tasks on the fly. Some departments even install smart speakers to speed up hands-free documentation or access reminders. These tools may feel helpful—but they also introduce risk without anyone flagging it to IT.

Once connected, these devices can interact with sensitive systems or patient data—even if unintentionally. Unlike approved medical equipment, they’re rarely subject to routine security checks, software updates, or access controls. That leaves major blind spots in environments where privacy, uptime, and accuracy aren’t negotiable.

You don’t need hundreds of rogue devices for this to be a problem. Just one overlooked tablet connected to the wrong network can put patients, data, and operations at risk. Spotting and managing these tools is the first step to closing the gap.

Before we look at a real breach, here’s a quick snapshot of the most common risk areas we see in healthcare IoT environments.

 

 

Healthcare Breach Real-World Example

A 2025 Claroty report, analyzing over 2.25 million IoMT devices across 351 U.S. healthcare organizations, found that 89% of providers host at least one of the riskiest 1% of medical devices. Those with known exploitable vulnerabilities and insecure internet exposure.

In one incident, hospital staff discovered a compromised patient monitor that allowed remote access and manipulation of vital sign outputs due to default firmware backdoors. The breach triggered emergency alerts and required manual patient tracking for 24 hours, costing the facility millions in mitigation, regulatory fines, and lost throughput.

This incident shows how a single vulnerable device, even one not appearing in your official inventory can bring operations to a standstill and put patients at risk.

Healthcare IoT Risk Snapshot

• 89% of organizations have one or more Internet‑connected medical devices with known exploitable vulnerabilities
• 20% of hospital information systems connect to vulnerable IoMT devices, raising exposure levels dramatically
• 14% of connected medical devices run on unsupported or end‑of‑life operating systems 
• 21% of devices rely on default or weak credentials that are easily compromised
• 22% of hospitals run medical or surgical devices on guest or open networks, allowing unauthorized access

 

 

Manufacturing: Smart Tech, Bigger Blind Spots

How IoT Powers the Factory Ecosystem

Smart devices now run every part of modern manufacturing—on the factory floor and beyond. You’ll see sensors tracking temperature, humidity, or machine usage. PLCs manage assembly processes. Legacy equipment gets retrofit sensors for analytics. Cameras and motion detectors integrate into safety systems. These tools boost productivity and reduce downtime, but as deployments increase, so do unknown connections and unmanaged endpoints.

Risks Lurking Among the Machines

• Production Interruptions: A compromised sensor or control system can halt entire production lines.
• Intellectual Property Theft: Design specs or process flows can be stolen via insecure IoT channels.
• Worker Safety Threats: Tampered sensors or safety devices can put personnel at risk.
• Hidden Vendor Access: Remote diagnostics may be enabled without oversight.
• Increasing Attack Surface: With more devices, your operational attack vectors expand—sometimes undetected.

Shadow IT on the Shop Floor

Vendors, contractors, and engineers often add devices during upgrades or troubleshooting without updating IT. A wireless sensor may go live to monitor efficiency, but never get logged or secured. Over time, these unofficial systems multiply, creating complex blind spots. That’s shadow IT in action, and it quietly undermines your security posture.

Let’s summarize the most common IoT security gaps manufacturers face before we explore a real-world breach.

 

 

Manufacturing Breach Real-World Example

A 2025 JumpCloud report revealed over 70% of manufacturers experienced a cybersecurity incident linked to IoT devices. In one incident, attackers gained access through a wireless access point installed for a CNC machine. They shut down production for two days and caused hundreds of thousands of dollars in lost output. Worse, investigation showed the device had default credentials and no tracking—classic signs of unmanaged shadow IT.

Manufacturing IoT Risk Snapshot

• 70% of manufacturers reported cyber incidents tied to IoT devices
• 46% rise in OT-layer ransomware in early 2025, targeting manufacturing systems
• 45% of industrial environments still use unencrypted communications
• 30% of facilities lack formal IoT injection or onboarding policies
• 60% of devices operate on outdated or unsupported hardware/software

 

Two Industries, Two Paths, One Shared Risk

At a high level, healthcare and manufacturing may look very different, but when it comes to IoT, they’re often struggling with the same problems:

• Limited visibility into what’s really connected
• Devices added without proper review
• Lack of segmentation or tracking
• Delayed or missing security updates
• Unlogged third-party access

Where they differ is in how those risks play out and how prepared they are to manage them.

Healthcare environments are used to compliance pressures. While this doesn’t eliminate shadow IT, it often results in better documentation, more regular audits, and clearer security protocols. Even so, gaps remain, especially at the clinical level, where productivity often outweighs process.

Manufacturing organizations, on the other hand, typically lack the same regulatory push. This leads to more organic device adoption and less centralized oversight. Engineering teams often act independently, making security harder to standardize. But this also means attacks can go unnoticed longer, and the response time is slower when something does go wrong.

Here’s what both industries can learn from each other:

• Manufacturing can adopt more structured inventory and compliance tracking, taking a page from healthcare’s playbook.
• Healthcare can tighten controls around personal and third-party device use, learning from manufacturing’s broader focus on perimeter defense.

 

 

Strengthening Your IoT Security Posture

Getting ahead of IoT risk doesn’t require a total overhaul, but it does demand better control over what’s connected, how it’s monitored, and who has access.

Start with these simple steps:

1. Build a Live Inventory of All Devices

If you don’t know what’s connected, you can’t secure it. Use automated discovery tools to identify everything on your network—including unmanaged or rogue devices.

2. Segment Your Network Intelligently

Keep smart devices in their own zone. Prevent lateral movement by creating clear boundaries between critical systems and less-trusted endpoints.

3. Control Shadow IT and Informal Deployments

Establish clear rules for who can add devices—and how those devices get approved and secured. Make it easy for your teams to do things the right way.

4. Monitor Behavior, Not Just Status

Go beyond uptime monitoring. Behavioral analytics can flag unusual traffic patterns or activity spikes that hint at compromised devices.

5. Track Updates and Patches

Assign someone responsibility for reviewing firmware updates and vendor support cycles. If a device can’t be secured, replace it or isolate it.

You Don’t Have to Guess What’s at Risk

Unsecured IoT devices and shadow IT aren’t just technical problems. They’re operational risks—ones that can disrupt care, halt production, or expose sensitive data. The solution starts with visibility and ends with action. Book a free IoT security risk consultation to identify unmanaged devices, audit your network segmentation, and close the gaps before they cause real damage.