The Looming Cybersecurity Threat at the Industrial IoT Edge

Published: June 4, 2025

The Industrial Internet of Things (IIoT) has transformed how industries operate, delivering efficiencies and insights previously unimaginable. Businesses across manufacturing, logistics, energy, and supply-chain sectors are now rapidly connecting legacy factory equipment, RFID-enabled assets, and operational technologies to cloud-based analytics platforms.

But as companies accelerate their adoption of these powerful technologies, they’re opening the door to a growing and often overlooked security crisis. Simply put, the industrial edge, where legacy equipment interfaces directly with modern cloud services, has become a new and urgent cybersecurity battleground.

Much of today’s connected industrial infrastructure wasn’t originally intended to be internet-facing. Equipment that was once isolated and secure by default—machines, controllers, sensors, and legacy RFID readers—are now being exposed to global networks without proper security safeguards.

Industrial Equipment Vulnerability

Unlike enterprise IT networks, industrial environments were historically built with operational stability and simplicity in mind, not cybersecurity. As such, industrial equipment often lacks basic security features such as encryption, secure authentication, and regular firmware updates. This leaves these systems highly vulnerable to cyber-attacks ranging from ransomware and denial-of-service (DoS) attacks to sabotage or unauthorized access.

Organizations risk costly downtime, data breaches, and even operational shutdowns that could severely impact critical supply chains, manufacturing processes, or public infrastructure.

Real-World Risks at the Industrial Edge

Recent headlines underscore how serious these vulnerabilities have become. Over the last several years, cyberattacks on industrial organizations have surged. Cybersecurity studies now regularly identify manufacturing as one of the most targeted sectors by cyber-criminals and nation-state threat actors.

For instance, a ransomware attack at a global automotive supplier in 2022 halted multiple production lines, costing millions in lost revenue. Similar attacks recently targeted logistics companies and food-processing plants, demonstrating the expansive nature of this risk.

It’s not just high-profile ransomware incidents that industries should worry about. Less visible but equally damaging are attacks involving unauthorized access to RFID-tagged assets and tracking systems, potentially allowing adversaries to manipulate supply chains or steal sensitive operational data.

Practical Steps to Strengthen Industrial IoT Security

Security at the industrial edge is becoming more challenging precisely because the technology itself is becoming essential and ubiquitous. Companies can’t pause digital transformation; instead, they must urgently manage risk effectively.

Industrial IoT security demands an integrated approach from the edge devices themselves—including RFID readers, controllers, and sensors—through internal communication layers and up to the cloud. Organizations must implement rigorous encryption, authentication, and secure data transmission protocols, ensuring data security at every stage, particularly when legacy equipment is involved. Many companies historically relied on proprietary systems, believing these would offer inherent security. However, proprietary systems can inadvertently lock organizations into outdated technologies that cannot easily adapt to evolving threats.

Increasingly, industry leaders are recognizing the importance of open, collaborative efforts like those fostered by EdgeX Foundry and other open-source industrial consortiums. Open doesn’t mean insecure— far from it. In fact, open-source collaboration helps industries rapidly identify vulnerabilities, quickly deploy security patches, and benefit from collective expertise across diverse sectors.

Additionally, artificial intelligence (AI) and machine learning (ML) are becoming essential to security at the industrial edge. AI-driven systems automatically normalize, categorize, and tag massive data streams at their origin, allowing for rapid identification of unusual or suspicious behavior indicative of security breaches. Real-time intelligence enables proactive responses, containing threats before they escalate.

Moving Forward: A Call for Industry-Wide Action

Industrial companies must recognize cybersecurity as foundational to their operational strategy—not as an isolated IT function or afterthought. A practical first step is to audit existing industrial IoT and RFID-based deployments, clearly identifying legacy systems that pose vulnerabilities.

These systems should be prioritized for immediate security upgrades, integrating end-to-end encryption, modern authentication standards, and multi-layered defense strategies. Additionally, robust monitoring and anomaly detection capabilities powered by AI should be included in cybersecurity plans, enabling proactive threat response.

Business leaders must actively participate in collaborative industry efforts, adopting key cybersecurity standards such as IEC 62443 and sharing threat intelligence across sectors. No single organization can address industrial IoT security challenges alone. Collective effort is crucial.

Industrial IoT and RFID-enabled technology will continue growing exponentially, delivering remarkable capabilities to industries worldwide. But to harness this potential fully, organizations must urgently address the emerging cybersecurity crisis at the industrial edge.

By implementing comprehensive, end-to-end security practices, embracing open standards, and leveraging AI-driven intelligence at the edge, industries can confidently navigate the IIoT landscape without leaving themselves dangerously exposed. The opportunities of industrial IoT are enormous, but so are the risks if companies don’t act quickly. The time to strengthen industrial edge security is now.

About the Author: Andrew Foster

Andrew Foster is Product Director at IOTech, with over 20 years of experience developing IoT and Distributed Real-time and Embedded (DRE) software products. He has held senior roles in Product Delivery, Management, and Marketing, and frequently speaks at industry conferences on distributed computing, middleware, embedded technologies, and IoT. Andrew holds an M.S. in Computer-Based Plant and Process Control and a B.Eng. in Digital Systems.