Introduction to IoT Devices

The rapid expansion of the Internet of Things (IoT) has fundamentally changed how organizations operate, enabling smarter, more connected enterprise networks. IoT devices—ranging from security cameras and smart TVs to advanced medical devices—are now embedded in nearly every aspect of business operations. These devices help organizations streamline processes, enhance productivity, and improve the management of critical systems.

However, as the number of connected devices grows, so does the risk. Unmanaged devices, which often lack basic security controls, can become easy targets for bad actors seeking to exploit vulnerabilities. Without proper oversight, these unmanaged IoT devices can introduce significant threats to enterprise security, potentially exposing sensitive data and undermining the integrity of critical systems.

To address these risks, it is essential for organizations to gain visibility into every device connected to their networks. This includes not only managed endpoints but also unmanaged IoT devices that may be operating outside the purview of IT teams. By implementing robust security controls and maintaining continuous visibility, enterprises can better protect their networks, safeguard critical assets, and ensure a secure environment for all connected devices.

The Unseen Threat in the IoT Ecosystem

The Internet of Things (IoT) is transforming industries, connecting billions of devices across healthcare, automotive, manufacturing, and energy. As organizations accelerate their digital transformation to stay competitive, IoT adoption surges—bringing increased risks. Yet this transformation comes with an overlooked risk: unmanaged IoT devices. These are devices connected to enterprise networks without proper oversight, patching, or security controls. The numerous connections between unmanaged or agentless devices expand the attack surface, making it harder to monitor and control potential entry points. They represent one of the fastest-growing vulnerabilities in modern cybersecurity.

Recent studies show that over 50% of unmanaged IoT devices contain critical vulnerabilities, while one-third of all data breaches now involve an IoT endpoint. Hackers and other attackers are increasingly targeting these blind spots because they often bypass traditional IT security tools. The emergence of botnets like Eleven11Bot highlights how unmanaged devices can be compromised en masse and weaponised to disrupt businesses and critical infrastructure.

For CISOs, unmanaged IoT devices represent a silent crisis. Unlike servers or laptops, these devices are often deployed outside central IT control, making them harder to monitor, update, and secure. Addressing this risk is now essential for any enterprise seeking to build a resilient digital ecosystem.

What Are Unmanaged IoT Devices?

Unmanaged IoT devices are endpoints connected to a network that lack the oversight of IT security teams. For example, these can include:

• Medical devices in hospitals such as infusion pumps, ventilators, or imaging machines
• Smart building technologies like HVAC systems, cameras, or lighting controls
• Industrial IoT (IIoT) sensors in factories or logistics operations
• Connected vehicles with embedded telematics systems
• Consumer-grade devices that employees bring into corporate environments
• Network devices such as unmanaged switches, routers, or legacy wireless access points

Unlike traditional IT endpoints, unmanaged devices often run proprietary operating systems, lack the ability to support security agents, and are designed with limited consideration for cybersecurity. As a result, they are easy entry points for attackers.

Why Unmanaged Devices Are a Top Cybersecurity Risk

The risks associated with unmanaged IoT devices extend across multiple dimensions. For an organization, taking a structured approach to managing these risks is essential to protect its attack surface and maintain robust cybersecurity.

Exploitation of vulnerabilities: Most unmanaged devices run outdated firmware or contain hard-coded credentials, making them easy targets for attackers. Once compromised, they can serve as backdoors into enterprise networks.

Shadow IT and blind spots: IoT devices are frequently deployed without informing central IT teams, creating “shadow IT.” Without visibility and proper accounting for all unmanaged IoT and OT devices, CISOs cannot enforce policies or patch vulnerabilities, undermining a comprehensive security strategy.

Inability to patch or update: Some devices have limited memory or processing capabilities and cannot support updates. Others require costly downtime to patch, making them persistently vulnerable.

Compliance failures: Regulatory frameworks such as NIST, Cyber Resilience Act (CRA), and WP.29 require continuous device management and reporting. Unmanaged devices put compliance at risk, exposing organisations to fines and reputational damage.

Operational disruptionIn OT environments such as energy grids or factories, a compromised unmanaged device can halt production, disrupt supply chains, or even endanger lives.

OT Devices and Cybersecurity

Operational Technology (OT) devices are the backbone of industrial systems, powering everything from manufacturing lines to healthcare environments. These specialized devices are designed to control and monitor physical processes, making them crucial for the smooth operation of critical infrastructure. As OT devices become increasingly connected to the internet, they also become more exposed to cyber threats.

Unlike traditional IT assets, OT devices often operate in environments where downtime is not an option, and their unique protocols and legacy systems can make them difficult to secure. In industries such as manufacturing and healthcare, a single compromised OT device can lead to operational disruptions, data breaches, or even threats to human safety.

To mitigate these risks, organizations must implement specialized security controls tailored to the needs of operational technology. Network sensors and continuous monitoring are essential for detecting suspicious activity and preventing lateral movement by attackers within the network. By prioritizing the security of OT devices and maintaining vigilant oversight, organizations can protect sensitive data, minimize the risk of data breaches, and ensure the resilience of their critical environments.

Case Study: How Botnets Exploit Unmanaged Devices

Botnets such as Eleven11Bot illustrate the scale of the unmanaged IoT threat. Attackers hijack thousands of unsecured devices simultaneously, using them to launch distributed denial-of-service (DDoS) attacks or to spread malware laterally across networks. In these cases, the devices themselves are rarely the target; rather, they become tools for attackers to compromise high-value systems.

Attackers often analyze network data to identify vulnerable unmanaged devices for botnet recruitment, scanning for devices that are not visible in traditional inventories.

What makes unmanaged devices particularly dangerous is their sheer volume and diversity. Unlike traditional malware campaigns, IoT botnets can exploit devices ranging from printers to smart cameras, often without users realising they have been compromised.

Why Traditional Security Approaches Fail

Conventional IT security solutions such as endpoint detection and antivirus cannot address unmanaged IoT devices effectively. These devices:

• Cannot support endpoint agents due to hardware or software limitations
• Operate in real-time environments where downtime for updates is not feasible
• Often lack visibility within enterprise monitoring tools
• Frequently establish unsecured or unauthorized connection points that are not detected by traditional security tools

This mismatch leaves CISOs relying on incomplete data and outdated controls, providing attackers with a growing attack surface.

How Automation Addresses the Unmanaged Device Problem

Automation is the only scalable solution to securing unmanaged IoT devices. Platforms like Device Authority’s KeyScaler 2025 leverage AI and automation to provide end-to-end visibility, authentication, and control.

Key capabilities include:

• Device discovery: Identifies all devices connected to the network, including shadow IoT.
• Automated identity provisioning: Issues certificates to authenticate devices and enforce Zero Trust access.
• Continuous policy enforcement: Applies security rules uniformly across the device lifecycle.
• AI-driven risk analysis: Detects anomalies and predicts potential vulnerabilities before they are exploited.
• Compliance reporting: Generates auditable logs aligned with frameworks such as NIST and CRA.

By automating these tasks, enterprises can reduce manual overhead, strengthen resilience, and eliminate unmanaged device blind spots.

Securing Individual IoT Devices: Best Practices

Protecting enterprise networks starts with securing each individual IoT device, whether managed or unmanaged. Organizations should adopt a proactive approach to IoT security by implementing multi-factor authentication, ensuring operating systems are regularly updated, and conducting frequent device discovery to identify new or vulnerable endpoints.

Continuous monitoring is vital for detecting suspicious activity and responding to potential threats before they escalate. Limiting access to IoT devices and deploying advanced security tools can help prevent unauthorized users from exploiting vulnerabilities to steal sensitive data or disrupt critical infrastructure.

Employee education is another key component—staff should understand the risks associated with unmanaged devices and the importance of following security best practices. By fostering a culture of security awareness and leveraging robust authentication and monitoring solutions, organizations can significantly reduce the risk of data breaches and create a secure environment for all devices, including those that are unmanaged. This comprehensive approach ensures that enterprises remain resilient in the face of evolving IoT threats.

Industry Examples of Unmanaged IoT Risks

Healthcare: Hospitals face the challenge of managing thousands of medical devices, many of which are unmanaged. An infusion pump running outdated firmware can be exploited to compromise patient safety and hospital data.
Automotive: Connected cars often contain hundreds of embedded IoT systems. Without continuous monitoring, manufacturers risk failing WP.29 compliance and exposing drivers to cybersecurity threats.
Manufacturing: Smart factories rely on IIoT sensors and robots. Unmanaged devices in this environment can cause production downtime, supply chain delays, and financial losses.
Energy and Utilities: OT systems controlling grids and pipelines are prime targets for state-sponsored attacks. Unmanaged IoT assets create vulnerabilities that could disrupt national infrastructure.

Compliance and the Pressure to Secure Every Device

Regulatory frameworks are increasingly focused on unmanaged device risks.

• NIST guidance requires real-time visibility and device authentication.
• CRA mandates vulnerability management for connected devices sold in the EU.
• Executive Order 14028 enforces supply chain integrity, making unmanaged assets unacceptable.
• WP.29 requires continuous cybersecurity monitoring in connected vehicles.

Failure to comply can lead not only to fines but also to lost business, as customers and partners increasingly demand proof of strong security practices.

The ROI of Securing Unmanaged Devices

Addressing unmanaged IoT devices is not just a security imperative — it is a financial one. Breaches involving unmanaged devices result in some of the most expensive recovery efforts, often due to downtime and reputational damage. Automating security with KeyScaler 2025 delivers ROI by:

• Reducing breach remediation costs
• Minimising downtime from cyber incidents
• Lowering the cost of compliance reporting
• Extending the useful life of IoT assets through proactive monitoring

Enterprises can estimate potential savings using Device Authority’s IoT Security ROI Calculator.

Building a Zero Trust Strategy for Unmanaged Devices

The future of IoT security is Zero Trust, where no device is implicitly trusted, and every interaction requires authentication. For unmanaged devices, this means automated provisioning of digital identities, continuous validation, and the ability to revoke access instantly.

KeyScaler 2025 provides the framework to achieve Zero Trust across unmanaged and managed devices alike. This ensures that enterprises can scale securely as their connected ecosystems grow.

Conclusion: Turning the Hidden Risk into a Managed Opportunity

Unmanaged IoT devices are no longer an invisible problem — they are a visible risk that attackers are exploiting daily. For CISOs, ignoring them is no longer an option. By adopting automated identity provisioning, AI-driven visibility, and continuous policy enforcement, enterprises can transform unmanaged devices from vulnerabilities into secured assets.

Device Authority’s KeyScaler 2025 provides the tools to tackle unmanaged IoT security head-on, delivering compliance, resilience, and peace of mind in an increasingly connected world.

The organisations that act now will not only protect themselves from today’s cyber threats but also build the foundation for future innovation in a secure digital ecosystem.