In the Internet of Things (IoT) sector, 2025 is shaping up to be a politically charged year. Major global jurisdictions are set to implement device security regulations, coinciding with potential tariffs, shifting production dynamics, and rising geopolitical tensions.

My advice for companies involved in manufacturing or using IoT devices? Prepare for the worst, but hope for the best.

Geopolitical tensions are impacting IoT

There’s no denying that the macro landscape is splintered. Internet infrastructure is increasingly under threat from espionage and sabotage with concerning implications for connected devices.

In November, two undersea telecommunications cables were cut in questionable circumstances, disrupting traffic. These acts raise global tensions, of course, but also highlight a critical vulnerability: cloud-dependent devices become completely inoperable when network connectivity fails. Even if a device is physically nearby and connected to a local Wi-Fi network, it’s effectively bricked without access to cloud servers.

Internet-connected devices can also be compromised for surveillance. In recent years, several governments have banned state-owned surveillance companies like Hikvision over such national security concerns. The cameras contained hard-coded admin passwords and “always-on” cloud connections and enabled facial recognition, person tracking, and gender identification – dangerous data points in the wrong hands.

These device vulnerabilities relate to broader concerns about IoT hardware being exploited for intelligence gathering. Under China’s National Intelligence Law, for example, Chinese companies must cooperate with state intelligence operations. This means Chinese-manufactured components or Chinese company-controlled elements within devices could theoretically be compelled to transmit data to authorities, a major security and privacy backdoor. Clearly, device origin should be a key consideration for consumers in the new year.

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Source: https://www.helpnetsecurity.com/2024/12/24/iot-2025-security/