How to Overcome Security Challenges in IoT Devices

Despite the complexity of connected device security and compliance, organizations can implement effective strategies to address common challenges with IoT security:

1. Implementing Security by Design

To protect connected devices, security must be integrated from the earliest stages of product development, not added as an afterthought. This approach aligns with regulatory expectations set out by the EU CRA and produces more secure products. 

Security by design includes:

Framework Adoption: Organizations should adopt established security frameworks like NIST's Secure Software Development Framework (SSDF) or IEC 62443 for industrial systems. These frameworks provide structured approaches to incorporating security throughout the development lifecycle.

Threat Modeling: Systematic threat modeling helps identify potential vulnerabilities before implementation begins. 

70-89% of risk vulnerabilities are addressed by threat modeling

Secure Development Practices: Implementing secure coding standards, automated security testing, and developer security training creates a foundation for secure products. Organizations that integrate security testing throughout development identify vulnerabilities earlier, when the time and cost to resolve them is much lower. 

2. Deploying with Secure-by-Default

Secure-by-default deployment of connected devices ensures that security is a fundamental aspect of the device from the moment it is installed. This approach minimizes vulnerabilities and reduces the risk of cyber threats. Below are key principles and best practices for achieving a secure-by-default deployment:

1. Secure Configuration from Factory

• Unique Credentials: Devices should ship with unique, strong passwords rather than default credentials.
• Minimal Open Ports: Only necessary ports and services should be enabled by default.
• Hardened Firmware: The device should come with the latest security patches and be resistant to tampering.
• Secure Boot & Firmware Integrity: Use cryptographic signatures to verify firmware authenticity.
  
  

2. Authentication & Access Control

• Multi-Factor Authentication (MFA): Require additional authentication for critical actions.
• Role-Based Access Control (RBAC): Limit privileges based on user roles.
• Device Identity Management: Each device should have a unique, cryptographically verifiable identity.
  
  

3. Secure Communication

• Encryption: Use TLS/SSL for data transmission.
• Mutual Authentication: Require both device and server authentication before data exchange.
• Secure API Access: Ensure that APIs are properly authenticated and authorized.
  
  

4. Automatic & Verified Updates

• Secure Update Mechanism: Implement signed firmware updates to prevent tampering.
• Automatic Patch Deployment: Devices should automatically receive security patches.
• Rollback Protection: Prevent downgrades to insecure firmware versions.
  
  

5. Network Security

• Segmentation: Isolate IoT devices from critical systems using VLANs or firewalls.
• Zero Trust Approach: Devices should not inherently trust any network entity.
• Intrusion Detection & Monitoring: Implement monitoring tools to detect anomalies.
  
  

6. Privacy & Data Protection

• Minimal Data Collection: Collect only the necessary data and anonymize sensitive information.
• Local Processing: Where possible, process data locally rather than sending it to the cloud.
• Data Encryption at Rest: Encrypt stored data to prevent unauthorized access.
  
  

7. Logging & Monitoring

• Tamper-Proof Logs: Secure logs to prevent alteration.
• Real-Time Monitoring: Use centralized logging systems for security event analysis.
• Automated Alerts: Implement alerts for suspicious activities.
  
  

8. End-of-Life & Secure Disposal

• Secure Decommissioning: Provide mechanisms to wipe data before device disposal.
• Long-Term Support Commitment: Vendors should specify security update lifecycles.
• User Notification: Notify users when a device reaches end-of-life support.
  
  

3. Strengthening Supply Chain Security

Since third-party components introduce security risks, managing security throughout the supply chain is essential for both security and compliance. To better secure connected devices, manufacturers should implement: 

Vendor Security Assessment: Implementing formal security assessments for component suppliers helps ensure they meet minimum security standards. These assessments should evaluate security practices, incident response capabilities, and compliance with relevant standards.

Software Composition Analysis (SCA): SCA solutions should be integrated into both development processes and ongoing monitoring to catch newly discovered vulnerabilities in existing components. Using automated tools like Finite State, which can conduct both source code and binary analysis, reduces resource strain and helps security teams identify and track third-party components and their known vulnerabilities, regardless of origin. 

Contractual Security Requirements: Establishing formal security requirements in supplier contracts creates clear expectations and accountability. These requirements should address security practices, vulnerability disclosure, and patching responsibilities and timelines for all suppliers.

4. Automate Continuous Security Testing & Vulnerability Management

Regular security testing is essential for identifying vulnerabilities before attackers do:

Penetration Testing: Regular penetration testing by skilled security professionals helps identify vulnerabilities that automated tools might miss. Organizations should conduct penetration tests before major releases and periodically throughout a product's lifetime.

Automated Security Scanning & Real-Time Monitoring: Implementing automated vulnerability scanning tools specifically designed for connected devices, like Finite State, provides continuous visibility into potential security issues. These tools should be incorporated into CI/CD pipelines and deployment processes for complete coverage. Automated scan should cover the following aspects.

• Software Compositions Analysis (SCA)
• Static Application Security testing (SAST)
• Dynamic Application Security testing (DAST)

Automation cuts time to identify & contain security breaches by 30%

5. Transparency Through SBOMs & Documentation

Regulatory frameworks increasingly mandate detailed visibility into software components. To stay compliant, manufacturers should implement:

Automated SBOM Generation: Implementing tools that automatically generate and update Software Bills of Materials reduces the manual effort required for compliance. These tools should integrate with development environments to ensure SBOMs remain current as components change.

Vulnerability Management Processes: Establishing clear processes for identifying, tracking, and remediating vulnerabilities in third-party components helps maintain security throughout a product's lifecycle. These processes should include regular component updates and security patches.

Documentation Standards: Creating standardized templates for security documentation ensures consistency and completeness. These templates should align with regulatory requirements to streamline compliance efforts.

6. Proactive Compliance Strategy

Taking a strategic approach to compliance reduces costs and improves outcomes, which is why organizations should prioritize:

Regulatory Monitoring: Establishing processes to track evolving regulations ensures early awareness of new requirements. 

Compliance Automation: Implementing tools that automate aspects of compliance reporting and documentation reduces manual effort. 

According to a 2023 McKinsey study, organizations with mature compliance automation reduce compliance costs by up to 30% compared to those relying on manual processes.

Cross-Functional Collaboration: Creating collaboration mechanisms between engineering, security, legal, and compliance teams ensures regulatory requirements are understood and addressed throughout product development. Regular cross-functional reviews help identify compliance gaps early.

Conclusion

Connected devices face unique security challenges that traditional approaches often fail to address. From resource constraints and complex supply chains to lifecycle management and physical security concerns, these challenges create significant security risks that increasingly impact regulatory compliance.

As regulatory frameworks evolve to address these risks, manufacturers and organizations deploying connected devices must adapt their security and compliance strategies. By implementing security by design principles, strengthening supply chain security, automating security testing, maintaining transparent documentation, and adopting proactive compliance approaches, organizations can navigate this complex landscape successfully.

The path forward requires a fundamental shift in how organizations approach connected device security—moving from security as a compliance checkbox to security as a core design principle. Those that make this shift will not only meet regulatory requirements but also build more secure, trustworthy products that stand out in an increasingly security-conscious market.

To learn how Finite State helps manufacturers secure connected devices and meet compliance requirements, contact us today.