How To Can Protect Connected Machines With Industrial IoT Security

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Many industries and businesses are experiencing digital transformations. There are many hotspots of investment and innovation in Industry 4.0, including big data platforms in supply chain and finance; automation in warehouses; AR in corporate training; and the Industrial Internet of Things.

Any professional responsible for vetting, deploying, and using connected devices and machines in the industrial IoT sector must stay vigilant. While IT budgets continue to grow through 2026 and beyond, the overlap between cyber and physical systems is expanding rapidly. Cybersecurity incidents do not discriminate—businesses of all sizes face real risks when they fail to secure their growing networks of IIoT devices.

What’s the Deal with Industrial IoT Security?

In just a few years, the IIoT has grown tremendously, bringing obvious security challenges into sharp focus.

The first step in a company’s digital transformation often involves installing connected sensors on machinery. These devices can become potential attack vectors unless they are properly protected from the outset.

The risks intensify when companies deploy connected IoT technology near customer records and valuable company IP. Target’s customer-data breach, which involved internet-connected air conditioners, now looks entirely predictable in hindsight. It was bound to happen—and now that it has, the broader risks are clear for everyone to see.

This is the new normal. Companies must routinely vet HVAC providers that promise robust security protocols for their internet-connected A/C units.

Data mobility may begin in-house during the early stages of digital transformation, but later upgrades often require continuous connections to remote servers. When risk vectors extend beyond a single retail chain’s customers, the stakes rise quickly—especially for public utilities in the United States, which are frequently owned and managed by opaque private entities.

Utility companies have many reasons to adopt IoT devices for water, electricity, and natural gas services—to improve reliability and service quality. Yet this rapidly expanding web of connectivity creates numerous potential points of cybersecurity failure.

At the core of the industrial IoT security challenge lies a sobering reality: hackers could potentially access every connected CNC machine, lathe, and sensor along every mile of gas or water pipeline. While telemetry data itself may not be valuable, an unsecured IoT sensor can serve as a gateway to far more sensitive assets, such as financial information or intellectual property (IP).

The IIoT Security Situation by Numbers

Industrial IoT security concerns affect every sector.

Tenable and Ponemon Institute released a March 2026 report showing that 90% of organizations actively deploying operational technology—including transportation and manufacturing—had suffered one or more data breaches in the previous two years.

Critical public services remain the most vulnerable targets of IIoT-based attacks.

Incidents at Colonial Pipeline and CNA Financial Corp. demonstrated that many financial institutions and public or quasi-public utilities have not taken sufficient steps to protect their digital systems. One attack originated from a single compromised connected workstation.

IBM’s 2026 findings confirmed that cyberattacks on manufacturers were among the most frequent. This comes as no surprise—manufacturing companies rank among the most enthusiastic adopters of IIoT products.

Combining physical and cyber systems by studying or modeling data across sourcing, fabrication, manufacturing, and transport operations delivers tremendous benefits across the industry.

This trend is expected to peak by 2027, when edge computing becomes standard in industrial settings such as plants and distribution centers. Analysts anticipate that 75% of operational information will then be processed at the edge.

Edge computing is a defining feature of the IIoT, yet it presents a double-edged sword. Many decision-makers have embraced the IIoT’s potential without fully considering the associated risks, leaving industrial cybersecurity in a reactive state.

What should entrepreneurs and business leaders understand about industrial IoT security today?

1. Factory-Default Passwords Must Be Changed

According to 2026 research, as many as 70% of connected sensors and devices still use default passwords. Every internet-connected device—whether on a factory floor or used by remote employees—requires a unique, strong password changed at every stage of its lifecycle.

Using weak or repetitive passwords across multiple IIoT devices and other digital systems creates additional exposure. Companies should enforce unique, strong passwords and reinforce this practice through ongoing training.

2. Choose Technology Partners Carefully

Synopsys research indicates that nearly all commercial software contains some open-source code, yet 88% of it is outdated. Outdated code frequently includes unpatched vulnerabilities.

Business decision-makers need a solid understanding of cybersecurity risks so they can ask the right questions when evaluating technology vendors. Any third party with access to a company’s digital systems represents a potential risk.

3. Establish Structured Update Processes

Small companies once updated IIoT systems manually. Today, the sheer volume of devices makes this approach impractical, and IT teams may overlook automatic updates.

In 2026, researchers identified an exploit called Name:Wreck that leverages flaws in four widely used TCP/IP stacks for DNS connections.

Although known vulnerabilities have been patched, devices running older software remain susceptible to remote takeover. Billions of devices across commercial and consumer technologies could still be at risk.

Every company adopting IIoT devices must define how updates will be managed throughout the devices’ lifecycle and what happens when they reach end-of-life. Businesses should prioritize systems that support automatic updates and offer a long operational lifespan.

4. Consider an External Management Team

The benefits and risks of investing in manufacturing or other industrial technologies can feel overwhelming. Companies lacking dedicated resources or expertise in information technology and IoT security culture are especially vulnerable to attacks.

With Industry 4.0 investments, organizations sometimes adopt a “set it and forget it” mindset that leaves systems exposed. One of the most important cybersecurity trends in 2026 is the growing number of companies turning to external partners and technologies for secure identity management and continuous access control.

5. Outsource Connected Technology Management

Software as a Service (SaaS), Robotics as a Service (RaaS), and similar models continue to gain traction.

Many companies cannot justify the cost of constantly upgrading software and hardware in-house. Outsourcing the monitoring and maintenance of cyber-physical infrastructure to specialized remote teams is often more cost-effective.

This approach reduces day-to-day operational burden while ensuring access to the latest technologies and timely security updates. As a result, IIoT maintenance—including cybersecurity—becomes more manageable, allowing planners to focus on core value-adding activities.

6. Segment IT Networks and Implement Robust Device Management

Networks controlling connected machines must remain separate from those handling general back-office or guest connectivity. Access should be limited and credentials tightly controlled.

Poor device management can lead to data breaches through loss, theft, or social-engineering attacks targeting personal devices. Hackers frequently exploit poorly managed mobile devices, workstations, or connected machines to gain network access.

Key device-management practices include:

• Eliminate or strictly control connected devices that process company data.
• Enable remote-wipe capabilities to delete sensitive data from lost or stolen mobile devices.
• Train team members never to leave logged-in computers or workstations unattended.
• Implement credential lockout policies on all connected devices and computers.
• Review all third-party APIs and add-ons thoroughly before deployment.
• Enforce multifactor authentication (MFA) on the most critical logins.

Also read:

• What Is Google SandBox?
• How to Make Sure Your Business Stays Secure and Safe
• Top 5 Prevalent Digital Wallet Trends of 2025

Safeguard Industrial IoT Security

Distributed computing expands the threat surface. The IIoT sector remains relatively young, and some lessons have come at a high cost.

Companies considering IIoT investments can draw on numerous real-world examples and resources. Guidance from the U.S. National Institute of Standards and Technology (NIST) on IoT device cybersecurity, along with similar resources from the UK’s National Cyber Security Centre on connected places, provides valuable direction.

Many effective options exist for protecting IIoT-connected devices. Implementing as many security protocols and procedures as possible is simply smart business.

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