The Pitfalls of IoT Development: Identifying and Addressing Vulnerabilities
In the rapidly evolving landscape of Internet of Things (IoT) technology, the stakes for successful application development couldn’t be higher. A single compromised camera or outdated VPN credential can stall the development process indefinitely, illustrating the fragility of today’s networked systems. Alarmingly, 75% of IoT initiatives fail to perform at a level sufficient to advance to the production stage, with 76% of these failures traced back to vulnerabilities at the device level. Recognizing and resolving these vulnerabilities is critical to ensuring that IoT projects remain on track and secure.
End-of-Life Devices Morphing into Attack Vectors
One significant concern lies in the proliferation of end-of-life devices. The AVTECH IP cameras, for instance, are found in essential infrastructure facilities, utilized by transportation authorities and financial services organizations. Presently, 37,995 of these cameras are exposed online, each one reaching its end-of-life status with no available patches for addressing vulnerabilities.
Notably, the CVE-2024-7029 vulnerability poses a serious threat, exploited through a command injection flaw embedded in the brightness function of these cameras. Despite the proof-of-concept being publicly available since 2019, AVTECH only received a Common Vulnerabilities and Exposures (CVE) assignment in August 2024, granting attackers a five-year window to exploit these devices without any official acknowledgment of the risks involved.
What Makes This Dangerous?
Several factors heighten the danger posed by these vulnerabilities:
- The Corona Mirai botnet campaign commenced targeting these devices in March 2024.
- Attackers can inject malicious code remotely with elevated privileges.
- Compromised cameras can become part of botnets used to launch Distributed Denial of Service (DDoS) attacks.
- Devices act as entry points into more extensive network infrastructures.
- Alarmingly, AVTECH has ceased responding to mitigation requests from the Cybersecurity and Infrastructure Security Agency (CISA).
- Their website still reflects a 2018 copyright, indicating a lack of updates or support.
Remedial Actions
To mitigate these risks, immediate resolutions must be prioritized:
- Decommission any affected hardware right away.
- If replacement takes time, isolate legacy devices behind firewalls.
- Conduct quarterly audits of all IoT assets to assess their end-of-life status.
- Plan and budget for hardware lifecycle management from the outset.
Networks inherently cannot secure devices that manufacturers have abandoned. Once a product is discontinued, it transforms into a liability as vulnerabilities arise.
VPN Access Lacking Authentication Controls
The 2021 ransomware attack on Colonial Pipeline serves as a stark reminder of the consequences stemming from inadequate security measures. In this case, the breach initiated with a compromised VPN password, which lacked multi-factor authentication for protection. The account in question was not even active when it was targeted.
In just two hours, DarkSide hackers compromised 100 gigabytes of data, encrypted billing systems, and demanded a ransom of 75 bitcoin, equivalent to $4.4 million. The attack forced Colonial to shut down 5,500 miles of pipeline for five days, leading to widespread fuel shortages and surging prices across the East Coast.
How the Breach Succeeded
Several factors contributed to this significant breach:
- A complex password was leaked through a separate data breach.
- There was no multi-factor authentication in place on the VPN account.
- An inactive account still possessed access privileges.
- Colonial chose to pay the ransom within hours, even as the decryption tool proved to be slower than their backup systems.
- Eventually, the Department of Justice was able to recover 63.7 bitcoin.
Protection Strategies
To bolster defenses against similar threats, organizations must adopt these practices:
- Enforce multi-factor authentication (MFA) on all VPN accounts without exception.
- Conduct monthly audits of inactive accounts and disable them promptly.
- Implement IP allowlisting to enhance VPN access security.
- Closely monitor VPN login attempts for any geographic anomalies.
- Rotate credentials every 90 days at a minimum.
A solitary unprotected VPN account can result in millions of dollars lost due to ransom payments, regulatory fines, and disrupted operations, underscoring the urgency for stringent security measures.
Default Credentials: A Common Haunt
An analysis by Nozomi Networks examined operational technology (OT) environments revealing that 7.36% of detected attacks employ brute force against default credentials, while another 5.27% exploit these credentials for lateral movement within networks. Many IoT devices come equipped with default usernames and passwords, which, due to rushed deployments, often remain unchanged, posing a high security risk.
Scale of the Threat
The magnitude of this issue is staggering:
- A remarkable 820,000 attacks occur each day.
- Automated scanners continuously probe IP ranges for devices using factory settings.
- The Shodan search engine simplifies the detection of vulnerable devices; by merely entering a device model, thousands of results appear.
Credential Management Approaches
To strengthen their security postures, organizations should implement a robust credential management framework:
- Require credential alterations during initial device provisioning.
- Utilize unique credentials for each device.
- Leverage password managers for inventory tracking of IoT devices.
- Activate automated alerts when default credentials are detected within the network.
- Maintain detailed records for every device, including its authentication requirements.
Network Segmentation Gaps: Amplifying Breach Impact
In the manufacturing sector, the average cost of a data breach was reported at $4.97 million in 2024, not accounting for regulatory fines or the loss of business continuity. The Eseye 2025 State of IoT report revealed that 75% of businesses had experienced an IoT security breach within the previous year, with the manufacturing sector alone experiencing an alarming 85% breach rate.
The Vulnerability Pattern
Several issues contribute to the escalating risk:
- Safety systems, production controls, and business networks often share the same infrastructure.
- A breach in a business system can swiftly spread to operational technology.
- Production lines may come to a standstill, resulting in compromised quality controls.
- VLAN misconfigurations can inadvertently create alternative pathways for network intrusion.
- Legacy configurations may exist without adequate documentation, further complicating the security landscape.
Segmentation Framework
To effectively contain breaches and minimize cascade effects, the following segmentation strategies should be employed:
- Separate business IT and IoT devices with distinct VLANs.
- Isolate IoT devices in a secure subnet protected by firewalls.
- Ensure OT/ICS systems are air-gapped or governed by stringent firewall rules.
- Where feasible, physically separate safety systems.
The Path Forward
As software vulnerabilities remain a persistent threat, companies that neglect timely patching are only delaying inevitable attacks. With an average of 2,000 new vulnerabilities surfacing monthly, the consequences of inaction will soon catch up. Notably, the ONEKEY 2024 survey identified significant gaps in security testing during procurement, revealing that only a mere 29% of organizations conduct thorough security assessments of IoT devices.
Firmware Management Solutions
To combat these challenges, organizations must implement effective firmware management systems:
- Introduce over-the-air (OTA) update capabilities from day one.
- Utilize cryptographic signing to verify the authenticity of updates.
- Enable rollback protection mechanisms to avert downgrade attacks.
- Establish a testing environment for firmware to mirror production settings.
- Keep a well-maintained asset inventory that tracks firmware versions.
Conclusion
Successful IoT deployments hinge on rigorous hardware audits prior to purchase, unwavering enforcement of multi-factor authentication, proper network segmentation, and strategic planning for firmware updates from the inception of each project. The security architecture employed will ultimately determine whether these initiatives transition smoothly into production or succumb to the staggering 75% failure rate plaguing the industry today.

