IoT has influenced all areas of today’s digitized, fast-paced world. Not only does it affect the lives of single users surrounded by an array of smart devices but also the manufacturers of these devices. What is the common denominator of a smart wristwatch and a SpaceX satellite? Both are assembled in highly specialized facilities whose peak efficiency depends on IoT solutions. Solutions like Supply Chain Optimization. Which in layman’s terms means using IoT to track and locate raw materials and finished products through the supply chain. Quality Control is also worth mentioning as monitoring the product quality
To make the whole process work the industries need to be aware of all the potential challenges they might face. What are those dangers?
Cybersecurity Risks
- Outdated Protocols and Legacy Systems
Production facilities might not be designed to operate with modern internet connectivity and cybersecurity threats. As global tensions rise, security inadequacies might be exposed to breaches used by hostile political and economic parties.
As an example, we can mention Tesla. The vehicles require over-the-air updates. It is a vulnerability that might be exploited and used by bad actors in order to create a local or global security breach
- Large Attack Surface
The sheer number of connected devices increases the attack surface, making it difficult to secure all potential breaches. Each machine, sensor or device can be exploited by the bad actors.
Inadequate Security Measures
- Infrastructure weaknesses
The Industrial infrastructure often lacks powerful cybersecurity measures when compared to, for example, a bank IT infrastructure. Inadequate security like that leaves critical systems exposed to dangerous breaches
- Malware and Ransomware Risk
Production lines might be targeted by malware attacks, such as the one Triton incident. In summer 2017 a Saudi Arabian petrochemical plant was targeted by malware which made it possible for the hackers to take control of the plant’s systems. Fortunately, a flaw in the hacker’s code gave the hackers away and a potential tragedy was averted.
Device Vulnerabilities
- Device Hijacking and Spoofing
Attackers can hijack devices or spoof communications which means acting as devices known in the system. Thus leading to unauthorized control over critical processes.
- Data Breaches
Sensitive data can be accessed from IoT devices that can serve as gateways for attackers. A vast number of connected devices makes the area of attack broader.
Integration Challenges
- Convergence of IT and OT
Both Information technology (IT) and operational technology (OT) introduce complexities in securing them. It is difficult to establish a unified security strategy as each domain has its own strategies and security requirements.
- Legacy Asset Compatibility
Some devices used by industrial entities were not originally designed for cloud connectivity and may lack security settings advanced enough to thwart risks.
Operational Risks
- Device Failures
Failures of IoT devices may impact system operations. That is why it is crucial to be prepared for failures in order to maintain production capabilities.
- Physical Vulnerabilities
Physical IoT devices can be tampered with. Particularly unprotected ones. Device functionalities might be changed by former employees without discontinued access permissions or individuals who make an unintentional mistake in configuring devices. These actions might also allow unauthorized access to networked systems.
Data Management Challenges
- Data inscription risks
Data collected and transmitted by IoT devices is endangered by the risk of interception or exposure of sensitive information.
In May 2019 Nortek’s several vulnerabilities were found in Nortek’s Linear eMerge E3 devices.
Amongst credential hijack possibility and lack of DoS attack countermeasures, it was found that encryption between central management system communicating devices was not sophisticated enough and could have led to hostile data interception. Unfortunately, despite the warnings, the company delayed the implementation of fixes and was exposed to tens of thousands of attempts that exploited these
- Inefficient Data Security Policies
Device security might be robust but another vulnerability comes in the form of inadequate security while sending the data to the cloud.
Again we can mention Nortek’s security breach. This breach serves as a cautionary tale regarding the significance of implementing secure measures of transmitting data to the cloud.
Strategies to Mitigate Industrial IoT Cybersecurity Threats
Industrial IoT systems face unprecedented cyber threats. The best defence is a multi-layered, proactive security strategy. Here’s how organisations are responding:
● Zero Trust Architecture (ZTA)
Instead of assuming that devices or users inside the network can be trusted, ZTA treats every request as potentially hostile. Access is granted only after continuous verification, reducing insider threats and lateral movement of attackers.
● Network Segmentation
Dividing networks into isolated segments ensures that even if one part is compromised, the breach doesn’t spread. Critical systems are kept separate from general traffic, creating a stronger security posture.
● AI-Driven Threat Detection
Machine learning algorithms monitor traffic patterns and system behaviours to identify suspicious activity early. This helps detect previously unknown attacks and respond in real-time.
● Regular Patch Management
Outdated software remains one of the biggest attack vectors. Automated patching schedules and real-time firmware updates are critical for keeping systems secure.
● Employee Training
Human error is a persistent vulnerability. Regular security awareness training—including phishing simulations and role-specific policies—empowers staff to act as the first line of defence.
Proactive, layered strategies make the difference between resilience and exposure in IIoT environments.
Role of Edge Computing in Enhancing Industrial IoT Security
Edge computing brings data processing closer to the source—improving both performance and security.
● Reduced Data Exposure
Since data is analysed locally on the device, there’s less need to transmit it to the cloud. This minimises the risk of interception during transmission.
● Operational Continuity
Edge devices can function independently from central networks. Even during connectivity loss or attack, localised systems can continue running safely, which is crucial for mission-critical environments.
● Built-in Security Features
Modern edge devices often include:
- Hardware encryption
- Secure boot protocols
- Trusted Platform Modules (TPMs)
These embedded features make unauthorised access significantly more difficult.
● Real-Time Anomaly Detection
Edge AI can detect and respond to anomalies instantly. For example, a factory robot operating outside of expected parameters can be shut down locally before causing harm.
Edge computing decentralises security, offering industries a stronger, more agile defence model.
Regulatory Landscape and Compliance Pressures
Meeting legal and ethical obligations is a growing priority as IIoT expands.
● NIS2 Directive (EU/UK)
Targets essential service providers, mandating cyber risk management, reporting, and resilience. Non-compliance can result in major penalties.
● GDPR
Even in industrial contexts, IIoT devices may capture personal data—especially in workplace tracking or customer-facing systems. GDPR demands clear data usage policies, encryption, and user consent.
● ISA/IEC 62443
This international standard outlines best practices for securing industrial control systems across design, development, and operations.
● Sector-Specific Rules
Industries like defence, transport, and healthcare must also meet regulatory requirements tailored to their operational realities (e.g., DEF STAN, FDA CFRs).
Implementation Best Practices:
- Appoint a compliance officer
- Conduct routine internal audits
- Integrate compliance checks into DevOps and OT teams
Compliance is not just a legal burden—it’s a framework for trust and sustainability in industrial innovation.
Future Outlook: Building Resilient Industrial IoT Ecosystems
The future of IIoT is about smart, secure, and adaptive systems. Emerging technologies and practices will play a vital role.
● Secure-by-Design Hardware
New devices are being built with tamper-proof components, secure firmware, and integrated access controls to reduce post-deployment risk.
● Federated Learning
This decentralised approach allows devices to train machine learning models locally, without sharing sensitive data—improving both privacy and efficiency.
● Blockchain for Integrity
Blockchain can provide verifiable logs of every interaction, change, or handoff in a supply chain. This immutable trail helps detect fraud or tampering.
● Interoperability and Open Standards
Organisations are joining alliances like:
- Open Process Automation Forum (OPAF)
- Industrial Internet Consortium (IIC)
These groups aim to prevent vendor lock-in and ensure compatibility between systems.
● Continuous Cyber Hygiene
Future-ready organisations will:
- Use real-time threat intelligence
- Automate patch and vulnerability management
- Incorporate AI to predict failure points before they occur
IIoT resilience will depend on systems that are intelligent, modular, and designed to evolve with threats.
Conclusion
Overcoming all the above challenges is certainly not easy in as Industrial IoT environment. But from the examples of companies that failed to act proactively, we can see that not participating in the constant race of applying to challenges brings grave consequences. Organizations need to be constantly vigilant and implement comprehensive security strategies that include regular risk assessments, robust vulnerability management programs, and continuous monitoring to protect against evolving threats.