As enterprises embrace digital transformation and connect more assets than ever before, unmanaged IoT devices are fast becoming one of the most dangerous blind spots in enterprise cybersecurity.

With over 27 billion connected devices worldwide in 2025, the sheer scale and diversity of IoT ecosystems—ranging from industrial sensors to medical devices—makes traditional security controls ineffective. Unmanaged IoT devices are present across multiple industries, such as healthcare, manufacturing, and finance, increasing the risk profile for each sector. A recent study found that more than 50% of IoT devices have at least one critical vulnerability, and 33% of breaches now involve an IoT component.

These devices are found in company offices, industrial facilities, and healthcare environments, contributing significantly to the overall attack surface.

Looking to the future, organizations must adapt their cybersecurity strategies to address the evolving risks posed by unmanaged IoT devices.

🚨 Introduction: The Unseen Risk Lurking in Your Network

In today’s hyper-connected enterprise environments, unmanaged devices—especially IoT devices—are quietly multiplying across networks, creating a significant threat that most organizations can no longer afford to ignore. From security cameras and smart TVs in office spaces to operational technology (OT) devices running critical infrastructure, these unmanaged assets often lack essential security features and are rarely accounted for in traditional IT inventories. This lack of visibility gives bad actors an easy entry point, enabling unauthorized access to sensitive systems and data.

To protect your enterprise, it’s essential to gain visibility into every network device, including those unmanaged assets that operate outside the usual security perimeter. Implementing robust access controls and multi-factor authentication can help reduce your attack surface and safeguard critical systems from vulnerabilities. By proactively identifying and securing all devices—managed and unmanaged—organizations can significantly lower their risk and ensure that their networks remain resilient against evolving threats.

⚠️ What Are Unmanaged IoT Devices?

Unmanaged IoT devices are those that:

• Lack direct user interfaces or agents
• Operate independently across networks (e.g. OT environments)
• Fall outside traditional IT asset inventories
• Are difficult to update, monitor, or patch
• Typically lack basic security controls such as authentication or encryption

Examples include legacy building systems, factory floor equipment, smart meters, or connected healthcare devices.

In contrast, managed devices like laptops and network devices are usually included in IT inventories and have stronger security controls in place.

These devices are often deployed without proper authentication, encryption, or policy controls—making them an open invitation to attackers.

🔍 The Visibility Gap

Security teams can’t protect what they can’t see. Many organisations struggle to:

• Identify and inventory all connected assets
• Assess vulnerabilities in real time
• Understand device behaviour and context
• Account for all unmanaged IoT devices and attribute their activity to specific users or business functions

This lack of visibility creates blind spots that attackers exploit using botnets, lateral movement, or credential theft. The Eleven11Bot incident earlier this year showed how a single unsecured device can be the launchpad for widescale infrastructure disruption.

Effective threat detection requires correlating multiple sources of network data and monitoring traffic patterns to identify suspicious activity. Advanced threat detection tools that leverage network data and traffic analysis can improve accounting and visibility of unmanaged IoT devices.

🌐 Operational Technology Risks

Operational technology (OT) devices are the backbone of many industrial systems, powering everything from manufacturing lines to healthcare operations. However, their critical role also makes them a significant threat vector if left unsecured. Unlike traditional IT assets, OT devices are often directly connected to the internet and may run outdated operating systems, making them especially vulnerable to hackers seeking to disrupt operations or steal sensitive data.

For example, a breach in a healthcare organization’s OT environment could compromise patient care and expose confidential information, illustrating just how high the stakes can be. To address these risks, organizations must conduct regular vulnerability assessments and implement layered security measures such as network segmentation and continuous monitoring. Educating employees about IoT security and the dangers of unauthorized device connections is also crucial to prevent lateral movement by attackers within the network.

By taking a proactive approach to securing OT devices—identifying vulnerabilities, monitoring for suspicious activity, and enforcing strict access controls—organizations can protect their most critical systems and maintain operational continuity in the face of emerging threats.

🔒 Why Full Lifecycle Management Is Essential

Securing unmanaged IoT devices requires more than just perimeter defence. It demands identity-centric security and automated lifecycle management. An integrated solution combines multiple security tools and analytics to provide comprehensive protection for unmanaged IoT devices, ensuring threats are detected and addressed efficiently. It is also crucial to secure every connection established by unmanaged IoT devices to prevent unauthorized access and data breaches.

With solutions like KeyScaler 2025, organisations can:

• Discover all unmanaged devices across IT and OT environments
• Automate identity provisioning and certificate management
• Enforce Zero Trust policies, even without deploying agents
• Continuously monitor risk and adapt in real-time
• Deploy network sensors or security tools to enhance device discovery and monitoring

These capabilities help CISOs meet regulatory demands such as NIST CSF, EO 14028, and the Cyber Resilience Act, while building stronger cyber hygiene.

📈 The Business Risk of Doing Nothing

Failing to address unmanaged devices can result in:

• Costly breaches and regulatory fines
• Lost customer trust and reputational damage
• Disrupted operations and productivity loss

A recent Ponemon Institute study found that breaches involving unmanaged devices cost 30% more on average and take 3x longer to contain.

✅ What You Can Do Today

1. Use a device discovery tool to map your asset landscape
2. Implement identity-first security using automated PKI and policy controls
3. Educate teams on the risks of shadow IoT and unauthorised device use
4. Integrate visibility into existing SOC and SIEM workflows

Final Thoughts

In 2025, unmanaged IoT devices are no longer a niche problem—they’re a mainstream security risk. Gaining visibility, control, and trust over your device landscape isn’t just best practice—it’s a strategic imperative.

👉 Learn how KeyScaler helps secure unmanaged IoT devices
👉 Download the 2025 Guide to IoT/OT Visibility and Control
👉 KeyScaler Platform