Why IoT is a growing enterprise network threat
The Internet of Things (IoT) is transforming enterprises—but every connected device is also a potential entry point for attackers. According to IDC, there will be 41.6 billion IoT devices by 2025, generating 79.4 zettabytes of data. This surge brings not only new opportunities but also unprecedented security risks.
Traditional firewalls and VPNs are no longer enough to handle the scale, diversity, and unpredictability of IoT traffic. Enterprises face challenges ranging from untrusted devices and lateral attacks to regulatory compliance and data protection. To stay ahead, security teams need layered, context-aware strategies that go beyond perimeter defenses.
In this guide, we outline four essential steps to strengthen enterprise network security against IoT risks in 2025—plus additional strategies like AI-driven detection, SASE, and SIEM to keep your networks resilient.
Below are four steps to help IT teams embrace the influx of IoT while ensuring network security and compliance.
4 steps to strengthen enterprise network security against IoT risks
Step 1: implement Zero Trust security for IoT devices
IoT devices are unmanaged by nature, yet enterprises still need to provide secure network and internet access. That’s where the Zero Trust security model comes in—a foundational framework for enterprise network security that is especially effective for securing unmanaged IoT devices.
How Zero Trust applies to unmanaged IoT endpoints
Based on the principle of “never trust, always verify,” Zero Trust treats every device, user, and application as untrusted by default—regardless of their network location. In the context of enterprise IoT security, this means continuously validating identities and enforcing access based on context. Zero Trust ensures that only legitimate users and devices are granted access to network resources, while blocking malicious actors from reaching sensitive systems.
Role of Zero Trust Network Access (ZTNA)
ZTNA provides the architectural foundation to enforce context-based security policies by continuously verifying who is accessing the network, what device they’re using, what application they’re trying to reach, and how they’re connecting.
How ZTNA empowers enterprises in practice
ZTNA gives IT teams the tools to enforce Zero Trust for IoT environments by:
- Enforcing dynamic access policies: define rules that adapt based on user roles, device posture, and location. For example, allow an IoT sensor to transmit telemetry data but block it from reaching internal databases.
- Integrating with identity and authentication platforms: connect ZTNA with IdPs like Azure AD or Okta, and layer in multi-factor authentication (MFA) to verify every connection request.
- Securing communication with least-privilege access controls: configure policies so IoT devices only talk to the specific apps or services they need, minimizing lateral movement.
- Maintaining visibility and control: use centralized dashboards to continuously monitor IoT traffic and detect anomalies, even from devices that were previously untrusted.
How to implement Zero Trust for IoT in practice
- Discover and inventory all IoT devices: use passive scanning or NAC tools to identify every connected endpoint, including headless IoT devices.
- Integrate with an identity provider (IdP): connect Zero Trust policies with platforms like Azure AD, Okta, or Ping Identity to authenticate both users and devices.
- Define least-privilege access rules: segment devices by type (e.g., security cameras, sensors, medical devices) and restrict each group to only the resources they need.
- Start with a pilot rollout: apply Zero Trust policies to one high-risk IoT network segment, test enforcement, and scale gradually.
- Continuously monitor and adapt: use behavioral analytics to detect anomalies (e.g., a printer trying to connect to a database) and update policies accordingly.
By combining Zero Trust and ZTNA, enterprises can modernize their IoT security posture, shrink the attack surface, and prevent attackers from moving laterally across distributed networks.
Step 2: identify and classify untrusted devices
Visibility is the foundation of enterprise network security, but many organizations lack a complete inventory of IoT devices—creating blind spots attackers can exploit.
Device discovery with Network Access Control (NAC)
- Deploy NAC at the network edge (switches, wireless controllers) to monitor all devices trying to connect.
- Use DHCP fingerprinting and behavioral analysis to recognize device types (camera, printer, sensor, etc.).
- Apply a default deny/quarantine policy for any device that hasn’t been authenticated or classified.
Intrusion detection and prevention (IDS/IPS)
As part of a comprehensive security strategy, it’s also crucial to monitor network devices for suspicious activity.
- IDS can detect unauthorized or abnormal traffic, helping identify hacker interference before it spreads.
- IPS adds proactive defense, blocking malicious activities in real time.
- NAC platforms integrate with IDS/IPS to enforce policy decisions automatically, allowing or denying access based on device trust level.
Practical steps to implement device classification
- Create a full IoT inventory — start with passive scanning to capture all endpoints across wired and wireless networks.
- Segment devices by trust level — for example: trusted (company-managed), untrusted (guest or vendor IoT), and unknown (new/unclassified).
- Quarantine unknown devices until fingerprinting and policy checks confirm they’re safe.
- Continuously update NAC policies based on IDS/IPS findings, new device types, or compliance requirements.
Step 3: enforce granular Identity and Access Management (IAM)
Not all devices need access to your entire network. Enforcing granular access control is a cornerstone of robust enterprise network security, especially as organizations grapple with the complexities introduced by IoT devices.
Multi-factor authentication and least-privilege access
By implementing multi-factor authentication (MFA) and comprehensive Identity and Access Management (IAM) solutions, enterprises can ensure that only authorized users gain access to sensitive data and critical systems. This approach not only helps prevent unauthorized or malicious access but also limits user access strictly to the resources necessary for their roles, following the principle of least privilege access.
Network segmentation and lateral attack prevention
Network segmentation—such as VLANs and micro-segmentation—is also critical. Network routers play a key role in managing and securing network traffic, enabling effective segmentation, and supporting security solutions like VPNs and firewalls to protect organizational data. Use DHCP-based segmentation to:
- Assign new devices to a default quarantine VLAN
- Extract device fingerprints before granting access
- Isolate critical assets from vulnerable endpoints
Firewall solutions are essential for enforcing access policies and protecting segmented network zones, providing advanced threat detection and enhancing overall network security.
If a compromised device attempts to connect to unauthorized resources, alerts are triggered and the connection is denied—preventing lateral attacks.
Effective access management allows organizations to monitor user access and track activity across the enterprise network, making it easier to identify suspicious behavior and respond swiftly to potential security incidents. By restricting access to sensitive data and critical systems, enterprises can significantly reduce the risk of internal threats and data breaches.
Granular access control also supports compliance efforts and strengthens the overall security posture, ensuring that the right people have the right access at the right time—no more, no less.
Step 4: apply adaptive and automated security policies
Once devices are classified and segmented, organizations should implement contextual security policies based on real-time risk. Key elements include:
- Firewall enforcement per subnet or device class, leveraging next generation firewalls for advanced threat detection, application awareness, and deep packet inspection
- Secure VPN tunnels for remote IoT access
- Data Loss Prevention (DLP) to monitor sensitive data flows
- Monitoring and securing web traffic to prevent threats, malware, and data leakage
- Security policy orchestration for consistent enforcement across clouds and campuses
- Use of Wi-Fi Protected Access (WPA/WPA2) protocols to secure wireless IoT device connections
Security policies should be:
- Regularly reviewed and updated
- Communicated clearly to all employees and stakeholders
- Aligned with compliance frameworks (GDPR, HIPAA, ISO 27001, etc.)
Automated response systems can detect and neutralize malware or botnet activity in real time—reducing response time and mitigating impact.
Data protection strategies for IoT environments
Protecting data in IoT environments requires a multi-layered approach to enterprise network security. As organizations integrate more connected devices, it becomes crucial to implement robust data protection strategies that address the unique risks posed by IoT. Encryption should be used to secure data both at rest and in transit, ensuring that sensitive information remains confidential even if intercepted.
Access controls play a vital role in limiting exposure, allowing only authorized users and devices to interact with critical data. Data loss prevention systems can monitor network traffic for signs of unauthorized data movement, helping to block data exfiltration before it occurs. Network segmentation further enhances security by isolating IoT devices from core business systems, reducing the risk of lateral movement in the event of a breach.
To protect remote users and secure data transmission, organizations should leverage virtual private networks (VPNs) and enforce multi-factor authentication. As outlined in Step 1, adopting a Zero Trust approach ensures that every access request is verified, regardless of location or device. By combining these strategies, enterprises can strengthen their security posture, block unauthorized access, and protect their most critical data assets in an increasingly connected world.
Strengthening enterprise network security with SIEM
Modern enterprises face threats from both outside and inside the organization. Insider risks—whether from careless employees, malicious intent, or compromised accounts—are particularly dangerous because they often bypass perimeter defenses. At the same time, the massive scale of IoT traffic makes it difficult to spot anomalies across diverse devices.
Security Information and Event Management (SIEM) provides the visibility needed to address both challenges. SIEM platforms aggregate and analyze logs from across the enterprise network—covering users, servers, and IoT endpoints—while correlating events to detect unusual behavior in real time.
When integrated with Intrusion Detection and Prevention Systems (IDS/IPS), SIEM delivers a unified view of network activity, helping security teams quickly identify and respond to suspicious actions before they escalate. SIEM also supports compliance with regulations such as GDPR and HIPAA by maintaining detailed audit trails and incident response records.
AI-powered threat detection and response
The sheer scale of IoT traffic makes it impossible for humans alone to monitor effectively. Artificial intelligence (AI) and machine learning (ML) can analyze massive volumes of network activity in real time, identifying patterns and anomalies that might indicate phishing, malware, or botnet activity.
AI doesn’t just detect threats faster—it also improves accuracy by reducing false positives and continuously learning from new attacks. By automating parts of detection and response, AI helps security teams contain threats before they spread and focus their efforts where they’re needed most.
Secure network architecture for IoT: SASE, segmentation, and cloud security
As IoT devices proliferate across enterprise networks, designing a secure network architecture becomes increasingly important. Implementing Secure Access Service Edge (SASE) solutions provides a unified approach to secure network connectivity and access control for all devices, including IoT endpoints. SASE integrates security features directly into the network infrastructure, ensuring that every connection—regardless of location or device type—is protected. Securing cloud environments is also essential, requiring robust encryption, access controls, and continuous monitoring to protect sensitive data and applications stored in the cloud.
With the shift from a traditional network perimeter to cloud and hybrid environments, organizations must adopt new security models like SASE and Zero Trust architectures to address the challenges of an expanded or blurred network perimeter. Network modernization, including infrastructure upgrades and migration to more secure architectures, is crucial for maintaining a resilient security posture.
In addition to SASE, deploying intrusion detection and prevention systems enables organizations to monitor network traffic continuously and identify potential threats before they can cause harm. When developing secure architectures, it is important to consider the key components of enterprise network security, such as firewalls, endpoint protection, and identity management.
Network segmentation is another critical design principle, isolating IoT devices from core business systems to prevent lateral movement in the event of a security breach. Implementing multiple layers of defense further strengthens protection against threats. By prioritizing these architectural strategies, enterprises can reduce the risk of IoT-related security breaches, maintain a strong security posture, and ensure that their network connectivity remains both efficient and secure.
Enable continuous monitoring and incident response
Security doesn’t end at policy enforcement. Continuous monitoring and incident response are essential for maintaining enterprise network security in the face of evolving cyber threats. The rise of remote workers in hybrid and distributed networks presents additional challenges for maintaining security and visibility, making monitoring and threat detection more complex. By monitoring network traffic and system activity in real time, organizations can quickly detect unusual patterns or potential security incidents, enabling a rapid and effective response.
A well-defined incident response plan outlines the steps to contain, eradicate, and recover from security incidents, as well as post-incident analysis to prevent future occurrences. Leveraging AI-powered security solutions enhances continuous monitoring by automating threat detection and providing actionable insights for security teams.
Regular security audits and risk assessments further strengthen the security posture by identifying vulnerabilities and ensuring that security measures remain effective against emerging threats.
By integrating continuous monitoring and a proactive incident response strategy, enterprises can minimize the impact of security incidents, protect sensitive customer data to maintain trust and comply with regulations, and maintain the trust of customers and stakeholders in an increasingly connected world.
Final thoughts: enterprise IoT security is non-negotiable
Securing your enterprise network isn't just about defending laptops and servers—it's about managing thousands of connected devices that could expose your systems to risk.
With Zero Trust, cloud-based NAC, granular access control, and automated policies, you can stay ahead of IoT threats while keeping your network efficient and compliant.
Strengthen your IoT security strategy with Cloudi-Fi
Cloudi-Fi provides a cloud-based Zero Trust solution designed for complex, multi-device environments—enabling enterprises to discover, segment, and secure unmanaged IoT devices without heavy infrastructure changes. With support for DHCP fingerprinting, dynamic access control, and seamless guest Wi-Fi onboarding, Cloudi-Fi helps you modernize your enterprise network security architecture for the IoT era.
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