INTERCONNECTION Cybersecurity expert explains why the UK’s
IoT boom could spark the next Cyber crisis Legacy systems and poor segmentation are leaving enterprises dangerously exposed, especially as IoT-targeted breaches in the UK surged by 34 per cent in 2024, according to cybersecurity expert, Christian Espinosa from Blue Goat Cyber
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lue Goat Cyber says the UK’s IoT adoption is surging, with enterprise deployment growing by 18 per cent year-on-year. From smart cities and healthcare to logistics and finance, connected devices are transforming industries. Yet this explosion of endpoints presents a double-edged sword: each device is also a potential vulnerability. In 2024, UK organisations reported a 34 per cent rise in IoT-targeted breaches, with malware and ransomware topping the list. Smart devices in manufacturing and healthcare are particularly at risk due to legacy operating systems, weak patch cycles and flat networks. The consequences are already being felt, as the average cost of an IoT-related breach in the UK was £2.9 million in 2024, excluding reputational damage. “IoT is the fastest-growing attack surface we’ve ever faced. In the UK alone, billions of devices are coming online across sectors: from NHS medical equipment to smart energy meters, and each of them can be weaponised if security is an afterthought. Unlike traditional IT assets, IoT devices often run outdated firmware, lack encryption, or are deployed with default passwords still in place. Attackers know this and are exploiting it relentlessly. The solution isn’t to retreat from IoT, but to modernise our defence models. AI-powered monitoring is critical: machine learning can spot anomalies across thousands of devices simultaneously and trigger automated responses in seconds, something human teams can’t scale to. At the same time, blockchain-based identity verification ensures devices can’t be spoofed or tampered with, preserving trust in critical data. Organisations must also focus on fundamentals: segmenting IoT networks so that a breach in a smart camera doesn’t compromise core systems; conducting regular firmware audits; and embedding IoT security into procurement processes, not as an afterthought.
IoT has enormous potential to drive UK productivity and innovation. But without robust defences, it also has the potential to become our Achilles’ heel. The choice is stark: embrace AI and blockchain to secure our future, or risk
billions in losses from preventable attacks,” says Christian Espinosa cybersecurity expert, Blue Goat Cyber.
The IoT security challenge Every connected device: smart meters, industrial sensors, or medical equipment, is a potential entry point for attackers. Legacy devices and inconsistent patching protocols amplify risk, creating a complex environment for security teams to manage.
AI and Blockchain: new tools for resilience
Machine learning can monitor network traffic, detect anomalies and trigger automated responses faster than any human team could. Blockchain can verify device identities and secure data integrity, reducing the risk of spoofing and tampering.
Key technical interventions include: Dynamic AI monitoring: Continuous learning models detect subtle deviations across thousands of endpoints Automated incident response: AI-driven orchestration reduces reaction time to seconds, limiting attack impact Device identity verification via Blockchain: Ensures each IoT endpoint is authenticated before communicating with critical systems
18 OCTOBER 2025 | ELECTRONICS FOR ENGINEERS
Network segmentation: Separates high- risk IoT traffic from corporate or industrial networks to contain potential breaches Regular firmware and security audits: Addresses legacy device vulnerabilities before attackers exploit them
Why it matters
Unchecked IoT vulnerabilities can cascade across supply chains, healthcare and critical infrastructure. In 2024 in the UK, the average cost of an IoT-related breach was £2.9 million.
Practical safeguards for UK businesses
Segment networks: Separate IoT traffic from corporate and critical infrastructure networks Deploy AI monitoring: Use anomaly detection to flag unusual behaviour across endpoints Adopt Blockchain verification: Authenticate devices and preserve data integrity Run firmware audits: Regularly patch vulnerabilities in legacy devices Embed security in procurement: Assess vendor cyber hygiene before deploying devices
For the UK, the IoT revolution is an opportunity and a looming risk. By combining AI, blockchain, and strong governance, organisations can secure connected ecosystems without stifling innovation.
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