The growing need to connect physical infrastructure with digital technology has amplified security risks to levels never known before. The inexorable rise in connected surface areas has expanded the scamsters playground, making it easier than ever to exploit vulnerabilities. The fact that most IoT and OT environments are evolving without a proper cybersecurity policy in place, and with over 41.6 billion IoT devices expected to be connected by 2028 producing nearly 100 zettabytes of data, hackers are all set to have a field day in their bid to crack open every chink and create havoc with systems.
Every such breach in the past serves as a glaring eye opener – be it the Colonial Pipeline ransomware attack and its widespread and crippling consequences across the US or the Stuxnet worm that sent Iran’s nuclear program for a toss – highlighting the overwhelmingly disruptive potential of these attacks, some of which can be disastrous enough even to cause long term unsustainable damages like environmental hazards.
This blog focuses on the cybersecurity challenges posed by IoT and OT systems and how organizations need to create a multi-level cybersecurity solutions to proactively identify and blunt every cyberattack before it happens.
Understanding IoT and OT Systems in a Digital Ecosystem
IoT refers to the network of connected devices that collect, store, and transmit data. These can be consumer gadgets like smart thermostats commonly used to regulate room temperature or industrial tools like environmental sensors that monitor environmental conditions in real-time. On the other hand, OT includes systems (hardware and software) that control physical processes in industries. These include SCADA systems, PLCs (Programmable Logic Controllers), and ICS (Industrial Control Systems) that regulate pressure in pipelines or power grids.
In a digital ecosystem, IoT and OT systems depend on each other to keep processes running. While IoT devices collect real-time data, OT systems act on the data to regulate operations. Only when they are integrated do they work in unison to make industrial processes more intelligent and automated. Now, as these two systems have vulnerabilities, integrating them augments the vulnerabilities, thereby necessitating unified cybersecurity strategies to safeguard both.
Why IoT and OT are Prime Targets for Hackers
IoT and OT are prime targets because of the inherent disparity in their security frameworks, which, in the first place, were built without envisaging the need to integrate. When these two are converged, the vulnerabilities get augmented, increasing the attack points. Added to this are reasons like:
Legacy Systems with Limited Upgradability
Many OT environments bank on outdated hardware and software that are not built to support enhanced or converged cybersecurity. Sometimes, the patchwork needed to enhance converged security levels is postponed, leaving the system vulnerable to attacks.
Lack of Built-In Security in Devices
Most IoT devices do not have robust security features built into them because of factors like cost constraints, limited processing power, etc. Many retain their factory settings and are not changed during deployment or upgrades, making them vulnerable.
Edge Device Exposure
Devices like sensors, meters, and actuators are sometimes kept in open, remote, and insecure locations. This increases the risk of security breaches such as tampering, theft, or unauthorized access.
Supply Chain Vulnerabilities
Sometimes, harmful codes get introduced into the devices during firmware updates, especially when third-party suppliers carry out the updates. These codes remain hidden and compromise the security system over time.
These weaknesses make IoT and OT systems a green pasture for cyberattacks.
Top Cybersecurity Challenges in IoT and OT Environments
Building an effective defense strategy for an integrated IoT and OT environment is challenging primarily because of its fragmented and evolving nature. Some of the most distinct challenges organizations face are:
Lack of Visibility Across Devices
An integrated IoT-OT environment consists of a multitude of sensors, controllers, and smart devices deployed across networks. Maintaining real-time visibility across all of these devices simultaneously is difficult.
IT–OT Segregation
IT and OT systems are built on different technologies and are run on different priorities. This keeps their operations inherently siloed and makes seamless integration difficult. As a result, developing cohesive cybersecurity policies around the integrated infrastructure is a challenge.
Vendor-Specific Security Gaps
In an industrial setup, diverse IoT devices built by diverse vendors need to be integrated across a common network to serve a common purpose. As each of these diverse devices has its own proprietary protocols, configuring them to address common vulnerabilities is a challenge.
Weak Identity and Access Controls
Equipping IoT-OT environments with a granular access policy is challenging because of the diverse nature of connected devices. Many organizations depend on shared credentials and insufficient user authentication to overcome this, enabling hackers to move laterally without roadblocks.
No Centralized Monitoring
Establishing a unified logging and monitoring system for large IoT-OT environments is challenging. As a result, blips are not spotted on time, leading to easy and subsequent attacks quickly.
Strategies and Solutions for Securing IoT & OT Systems
Developing the right strategy to mitigate risks can go a long way inprotecting sensitive IoT-OT environments. A few proven strategies include:
Network Segmentation & Micro-Segmentation
An effective way is to break down networks into smaller zones for easy control. This will limit access and arrest the lateral movement of threats. Besides, it reduces surface area exposure to possible breaches. Deploying Virtual Local Area Networks (VLANs) and firewalls at appropriate checkpoints will segregate communication boundaries, permitting only necessary interactions.
Zero Trust Architecture (ZTA)
Building a Zero-Trust environment across the network is a foolproof way for checking breaches. Zero-trust means authenticating every user and every device before providing access. It involves enforcing continuous and real-time verification, including multi-factor authentication and device certificates for entry into the network.
Asset Inventory & Visibility
Maintaining an inventory of all connected devices fortifies the security structure. Leveraging automated tools to map assets and maintaining up-to-date profiles enables administrators to be fully acquainted with the network. This process must also include regular inventory checks to spot alien devices.
Continuous Monitoring & Threat Detection
It pays to monitor IoT and OT systems continuously to spot anomalies. Platforms like Security Information and Event Management (SIEM) and Extended Detection & Response (XDR) help monitor device activity for unusual activities around the clock, nipping attacks in the bud.
Secure Firmware Updates and Patch Management
Malicious actors are always looking for outdated firmware or unpatched software. To ward off such threats, follow secure update processes and always ensure integrity. Similarly, implementing air-gapped systems, i.e., isolating an IoT-OT environment from external networks, reduces cybersecurity threats.
Employee Training
Hackers are waiting to exploit errors. Since error is human, errors pose a significant cybersecurity threat. The best way to counter this is to conduct regular training to plug the IoT-OT knowledge gap, impart knowledge of evolving defense mechanisms, and prepare teams for crisis response.
Role of Regulation and Frameworks in IoT & OT Cybersecurity
Yet another proven way to blunt cybersecurity threats is to adhere strictly to regulatory frameworks. These guidelines provide organizations with proven, industry-standard approaches to mitigate risks and improve resilience.
For instance, adhering to the NIST Cybersecurity Framework for OT helps businesses counter cyber threats in a well-structured way, ensuring a ready way to firefight threats. Likewise, IEC 62443 has been tailored to meet the focused cybersecurity needs of industrial control systems.
Besides, governments around the world have introduced regulations to strengthen cybersecurity in IoT-OT environments. Compliance with the US’s CISA and the EU’s NIS2 Directive can help industries protect IoT and OT ecosystems from evolving cyber threats.
Emerging Trends & Future Outlook
IoT and OT security needs are changing fast with advancing technologies and shifting priorities. The future is moving towards “secure-by-design IoT hardware” wherein security comprehensive features for IoT and OT integration will get embedded in the development stage of devices. This means, the IT and OT security teams will converge to develop security strategies together.
While staying prepared to adapt to the changes, organizations must, in the meantime, be on their toes to sniff out threats much before they happen. Continuous integration of evolving technologies, like predictive analytics, AI, etc., is the most reliable way to proactively detect and respond to threats. At the same time, they need to work towards making security frameworks more scalable to handle complexities with ease.
Author Bio: Mtr Pavithran Ayyala is a dynamic leader in manufacturing and supply chain transformation, known for driving innovation through agentic AI. With a strong background as a CIO and CISO, he has held pivotal roles at top global companies including Sony, HP, Dell, Flowserve, Yokogawa, and Neuland Pharma. Currently he works as the Chief Information Officer & VP in Utthunga Technologies.
