New study confirms IoT devices major source of security compromise

San Jose, Calif., July 19, 2021: Zscaler, Inc. a Cloud security firm, has released a new study examining the state of the Internet of Things (IoT) devices left on corporate networks during a time when businesses were forced to move to a remote working environment.

The new report, ‘IoT in the Enterprise: Empty Office Edition,’ analysed over 575 million device transactions and 300,000 IoT-specific malware attacks blocked by Zscaler over the course of two weeks in December 2020 – a 700 per cent increase when compared to pre-pandemic findings. These attacks targeted 553 different device types, including printers, digital signage and smart TVs, all connected to and communicating with corporate IT networks while many employees were working remotely during the COVID-19 pandemic.

“For more than a year, most corporate offices have stood mostly abandoned as employees continued to work remotely during the COVID-19 pandemic. However, our service teams noted that despite a lack of employees, enterprise networks were still buzzing with IoT activity,” said Deepen Desai, CISO of Zscaler in a statement. “The volume and variety of IoT devices connected to corporate networks is vast and includes everything from musical lamps to IP cameras. Our team saw 76 percent of these devices still communicating on unencrypted plain text channels, meaning that a majority of IoT transactions pose great risk to the business.” 

What Devices Are Most At Risk?

Out of over half a billion IoT device transactions, Zscaler identified 553 different devices from 212 manufacturers, 65 percent of which fell into three categories: set-top boxes (29 percent), smart TVs (20 percent), and smartwatches (15 percent). The home entertainment & automation category had the greatest variety of unique devices but they accounted for the least number of transactions when compared to manufacturing, enterprise, and healthcare devices. 

Most traffic instead came from devices in manufacturing and retail industries – 59 percent of all transactions were from devices in this sector and included 3D printers, geolocation trackers, automotive multimedia systems, data collection terminals like barcode readers, and payment terminals. Enterprise devices were the second most common, accounting for 28 percent of transactions, and healthcare devices followed at nearly 8 percent of traffic. 

ThreatLabz also discovered a number of unexpected devices connecting to the cloud, including smart refrigerators and musical lamps that were still sending traffic through corporate networks.

Who’s Responsible?

The ThreatLabz team also looked closely at activities specific to IoT malware tracked in the Zscaler cloud. Volume-wise, a total of 18,000 unique hosts and roughly 900 unique payload deliveries were observed in a 15-day timeframe. Malware families Gafgyt and Mirai were the two most common families encountered by ThreatLabz, accounting for 97 percent of the 900 unique payloads. These two families are known for hijacking devices to create botnets – large networks of private computers that can be controlled as a group to spread malware, overload infrastructure, or send spam.

Via: Zscaler

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