Top 20 Challenges of IoT in Real Life – How to Overcome Them

The Internet of Things (IoT) isn’t just the future, it’s already wrapped around your daily life. From smart doorbells and connected coffee machines to hospital monitors and factory sensors, billions of devices are quietly working in the background.

But here’s the twist: every connected gadget is also a potential open door for hackers. One weak password, outdated firmware, or unmonitored sensor can snowball into massive breaches, operational chaos, or even safety risks. This isn’t fear-mongering, it’s reality.

The good news? With the right strategies, you can lock those doors before trouble walks in.

In this blog, we will talk about why IoT is important in our daily lives and look at the top 20 challenges of IoT, along with simple ways to solve them.

How These IoT Security Threats Show Up in Daily Life

The Internet of Things challenges aren’t just a concern for tech teams, they’re in your living room, office, hospital, factory, and even the checkout lane at your favourite store.

In smart homes, things like doorbells and cameras often use default passwords and miss updates, putting your privacy at risk.

In offices, unmonitored devices like printers and thermostats, known as "Shadow IoT", can silently open the door to cyberattacks.

In Healthcare, IoT devices like wearables often send unencrypted data, risking patient privacy. In factories, unsecured APIs in sensors can be exploited to disrupt production. And in retail, outdated POS systems are easy targets for data thieves.

These aren’t future threats, they’re happening now. Any connected device can be a weak link if not properly protected.

That’s why staying ahead with strong, proactive protection isn’t a luxury anymore, it’s a necessity. Now, let’s take a closer look at some of the common, and often hidden, IoT security challenges and explore practical ways to overcome these IoT problems.

Top 20 Challenges of IoT & How to Overcome Them

Here’s a comprehensive list of the top 20 challenges with iot, their real-life relevance, solutions, and best practices to overcome them.

1. Default Passwords (AKA: The Hacker's Welcome Mat)

Hackers can access smart devices using default passwords. Most IoT devices ship with the same default login. Think "admin/admin" or "1234."

In 2016, the Mirai botnet hijacked thousands of baby monitors and webcams using default passwords. Result? One of the biggest internet outages ever.

Your Move: Change every password. Use strong, unique combos. Bonus: get a password manager.

Best Practices: Use strong, unique passwords per device

2. No Encryption (Like Sending Postcards with Your Secrets)

Data from smart speakers or cameras can be intercepted. Many IoT devices send data in plain text. That means anyone sniffing your network can read it.

A fitness tracker that sends your route without encryption can tell creeps where you jog every morning.

Your Move: Enable end-to-end encryption. Choose devices that use TLS/SSL (A security protocol that encrypts data between your browser and a website so hackers can’t read or tamper with it). Check product specs. If it says "AES encryption" or "HTTPS only", that's a green flag.

Best Practices: Use HTTPS, TLS, and encrypted storage.

3. No Firmware Updates (Outdated = Open Season)

Old smart TVs or thermostats remain vulnerable. Some devices never get security updates. Bugs stay forever.

That 4-year-old smart TV in your office? It could be running on software with known vulnerabilities.

Your Move: Ensure devices have OTA (over-the-air) updates. Buy from brands that offer automatic updates. Check the last update date before buying.

Best Practices: Buy from vendors that support long-term updates.

4. Open Ports & Weak Interfaces (A Digital Open Door Policy)

A baby monitor may be hijacked due to known bugs. APIs and ports are like doorways. If they're open and unprotected, hackers can walk right in.

Smart fridges with open FTP ports became crypto-mining bots.

Your Move: Apply security patches promptly. A baby monitor may be hijacked due to known bugs. Scan your network. Shut down unused ports. Use firewalls and VPNs.

Best Practices: Turn on auto-updates and monitor vendor advisories.

5. Lack of Device Authentication (Anyone Can Join the Party)

Devices can be accessed via open ports or weak APIs. Some devices don’t check who’s connecting to them. Yikes.

A hacker connects a rogue device to your smart office lights and controls them remotely.

Your Move: Secure all endpoints with firewalls and VPNs. Use device whitelisting and MAC address filtering.

Best Practices: Disable unused ports, audit APIs.

6. Insecure Mobile Apps (Backdoor in Your Pocket)

Unauthorised devices can join home/office networks. The apps controlling your smart gear might be leaking data.

A cheap smart plug’s app was caught uploading phone contact lists to unknown servers.

Your Move: Use device whitelisting. Download apps from trusted sources. Check reviews. If it’s got less than 3 stars, skip it.

Best Practices: Implement MAC address filtering.

7. Weak Cloud Security (Your Data Sitting Naked in the Cloud)

Rogue firmware can take over a device. Many IoT devices store data in the cloud. If the cloud isn't secure, your data isn't either.

Smart security cam footage was exposed because the cloud platform had no authentication.

Your Move: Use devices with encrypted cloud storage and two-factor authentication.

Best practice: Choose devices with verified boot features.

8. Insecure Communication Protocols (Talkin' in Public)

Mobile apps controlling lights or locks may leak credentials. Some IoT gadgets use outdated or unsecured communication protocols.

A smart lock using HTTPS was unlocked by sniffing and replaying network packets.

Your Move: Look for devices using HTTPS, Zigbee 3.0+,CoAP or MQTTS

Best practice: Install apps from trusted sources only.

9. Botnet Risks (Your Devices Turned Against You)

Cloud platforms storing camera footage may be compromised. Unprotected devices can be turned into zombie bots for attacks.

The Mirai botnet used hacked IoT devices to take down Twitter, Netflix, and Reddit.

Your Move: Enforce access controls, MFA, and encryption. Disable UPnP. Use secure passwords. Monitor for unusual traffic.

Best practice: Avoid free/unknown cloud services.

10. Shadow IoT (Ghost Devices on Your Network)

Devices using MQTT or HTTP are vulnerable to sniffing. Devices you don’t know about are connected to your network.

A forgotten smart printer became the entry point for ransomware in a small business.

Your Move: Use secure protocols like HTTPS, MQTTS, CoAP. Run regular network scans. Inventory every device.

Best practice: Monitor protocol usage on your network.

11. Over-Permissioned Devices (Asking for Too Much)

Office IoT systems may be misused internally. Devices sometimes ask for way more access than they need.

A smart vacuum asking for camera and mic access... seriously?

Your Move: Apply role-based access controls. Audit permissions. Limit device access based on necessity.

Best practice: Limit access to what’s necessary.

12. Physical Tampering (They Can Just... Touch It)

Devices can be hijacked to launch DDoS attacks. Anyone with physical access can sometimes reset or reprogram devices.

The delivery driver unplugs a smart lock, resets it, and comes back later.

Your Move: Disable UPnP, block unusual traffic. Keep devices out of reach. Use tamper-evident hardware.

Best Practice: Use traffic monitoring tools.

13. Supply Chain Hacks (Poison Before It Gets to You)

Unknown devices connect to your network (TVs, printers). Malware gets installed before you even buy the device.

Cheap imported cameras came preloaded with spyware.

Your Move: Maintain an updated device inventory. Stick with trusted brands. Check for certifications (ISO, CE, FCC).

Best Practice: Use network monitoring and segmentation.

14. No Privacy Controls (Big Brother in Your Bedroom)

A smart lock may request unnecessary permissions. Some devices record audio/video with no way to turn it off.

Smart TVs are secretly listening to conversations and sending data to marketers.

Your Move: Use the principle of least privilege. Review privacy settings. Disable mics/cameras when not in use.

Best Practice: Audit permissions regularly.

15. Unsecured APIs (The Soft Underbelly)

Smart meters or hubs can be tampered with physically. Weak APIs can leak or be exploited by attackers.

A thermostat API let hackers see home occupancy patterns.

Your Move: Use tamper-evident seals, location restrictions. Use devices with secure, rate-limited, and authenticated APIs.

Best Practice: Lock down physical infrastructure.

16. Interoperability Issues (Smart Home, Dumb Problems)

Pre-installed malware in imported smart gadgets. Different devices don’t always play nice together. That opens up risk.

A glitch between a smart hub and door sensor left the front door unlocked.

Your Move: Vet hardware and firmware vendors. Use ecosystems that follow open standards like Matter, Thread, or Zigbee.

Best Practice: Buy from reputable brands.

17. End-of-Life Devices (Dead but Still Dangerous)

Smart assistants may store sensitive voice data. Older gadgets don’t get updates. But people keep using them.

An old smart router with known flaws was used as a beachhead in a data breach.

Your Move: Apply GDPR-like standards even at home. Replace EoL devices or isolate them from the main network.

Best Practice: Review privacy settings and terms.

18. No Visibility (You Can’t Protect What You Can’t See)

APIs powering smart services can leak or be manipulated. Most people don’t even know what’s connected to their network.

A tenant installs a rogue IoT cam in a rental without the landlord knowing.

Your Move: Use rate limiting, validation, and encryption. Use network monitoring tools (like Fing, Nmap, or commercial options).

Best Practice: Monitor API usage and access.

19. Lack of MFA (Single Password = Single Point of Failure)

Devices from different vendors conflict or expose one another. Most devices or apps use only a password to protect access.

The smart door lock was hacked because the app had no 2FA (Two-factor authentication).

Your Move: Use standards-compliant systems (e.g., Matter, Zigbee). Enable two-factor authentication whenever it’s offered.

Best Practice: Avoid cheap, off-brand integrations.

20. Neglected Devices (Set It and Forget It = Security Nightmare)

Unsupported devices (old routers, bulbs) become attack vectors. We install a device and then never touch it again.

Smart water sensors stopped working during a flood because no one noticed the battery died.

Your Move: Decommission or isolate legacy devices. Set reminders to check devices monthly. Review settings, battery life, and firmware status.

Best Practice: Track EoL timelines and rotate out devices.

From security concerns to scalability issues, real-life IoT challenges require practical solutions and updated skills. Our Internet of Things Course helps you understand, design, and troubleshoot IoT systems with real-time projects and hands-on training.

Conclusion

IoT makes life smarter, faster, and more connected, but challenges of IoT also makes security a moving target. The IoT security issues aren’t hidden in the shadows; they’re sitting in plain sight on your desk, wall, or shop counter. The key to winning this game is awareness plus action: know the risks, monitor devices, apply updates, and design security into every step. When you treat concerns of IoT as a habit instead of an afterthought, you’re not just protecting gadgets, you’re safeguarding your privacy, business, and peace of mind. Because in the IoT world, prevention isn’t optional, it’s survival.

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