The Internet of Things (IoT) has officially moved out of the lab and into the office. Whether it’s managing energy via smart thermostats or securing premises with networked CCTV, charitable organisations are increasingly leaning on connected tech to boost efficiency and improve service delivery.
Yet as the number of connected gadgets in your charity grows, so too do the cyber risks. According to the Cyber Security Breaches Survey 2025, a rising proportion of nonprofit organisations, especially those with reduced IT resources, face cyber threats linked to networked devices and remote access points.
As quoted in the survey,
‘Just over four in ten businesses (43%) and three in ten charities (30%) reported having experienced any kind of cyber security breach or attack in the last 12 months’.
These threats aren’t abstract. They can expose sensitive donor data, compromise service continuity, and inflict reputational harm charities can’t afford.
In this blog, we’ll break down what IoT really is, explore why charities are particularly vulnerable, highlight common IoT security threats, and show how your charity can defend itself successfully.
What is IoT?
At its core, the Internet of Things refers to everyday objects that connect to the Internet or other networks and exchange data. These aren’t conventional computers or phones; they’re devices like smart sensors, wireless printers, connected security cameras, environmental monitors, alarm systems, and even internet-enabled coffee machines.
Unlike laptops or servers, IoT devices are often designed for convenience rather than security, which makes them attractive targets for cybercriminals. Without appropriate security measures in place, these connected devices can act as open doors into your network.
IoT Security for Nonprofits: Why It Matters
Charities and nonprofit organisations are progressively adopting IoT for operational efficiency, community engagement, and hybrid working. Yet there’s a catch: many IoT devices lack the proper security features that are standard on traditional endpoints. They may run outdated firmware, use weak authentication, or send data unencrypted.
Organisations in the third sector can be especially vulnerable to cyber attacks. With often lean IT budgets and pressure on resources, charities may prioritise mission delivery over IT investment. Yet sensitive data, from donor records to volunteer databases and case files, holds high value on black markets and to opportunistic attackers.
Investing in strong cybersecurity isn’t voluntary. Alongside work on priorities like cloud security, such as how charities can address cloud vulnerabilities, IoT security must become a fundamental part of your charity’s defence strategy. Ensuring your charity understands why cyber security is important for nonprofits can protect you from costly breaches and service disruptions.
Top IoT Security Threats and Vulnerabilities For Charities
Moder IoT ecosystems can pose several security challenges. Understanding usual weaknesses is the first step to protecting against them. Here are the key IoT security threats charities need to be aware of:
Weak Authentication Systems
Many IoT devices come with default usernames and passwords that are easy for attackers to guess.
As explained in our Cyber Security Webinar, “Cyber criminals are motivated by return on investment… [they look at] how much money can I get out of an organisation versus how difficult it is to get in”
Without strong, unique credentials across devices, your network becomes as insecure as its weakest login.
Unencrypted Data Transmission
If an IoT device sends data without encryption, anyone intercepting that traffic can read sensitive information in plain text. That’s particularly risky when devices transmit over public or unsecured Wi-Fi.
Outdated Firmware and Software
Manufacturers often release firmware updates to fix security weaknesses. Unfortunately, many organisations don’t have processes in place to apply them swiftly, leaving devices exposed to known vulnerabilities.
Gaps Between Mobile Networks and the Cloud
Many IoT solutions rely on a combination of mobile connectivity and cloud services. That can create blind spots in visibility and management, especially if your charity hasn’t supported mobile policies with cloud security efforts.
Insufficient Access Controls
Without strong access control policies, anyone connected to the network could interact with all connected devices. Role-based access and least-privilege principles help ensure that only authorised users can control or view specific IoT endpoints.
Lack of Device Management
A lack of consolidated device inventory and management means unknown or forgotten devices may remain connected indefinitely, exposing your charity to unmonitored risk.
What is an Example of an IoT Attack?
A potential IoT security threat example could be:
A small charity deployed connected security cameras and smart environmental sensors in its community centre. The devices shipped with default credentials and weren’t segmented on an isolated network.
A cybercriminal scanned their IP range, found these unsecured devices, and used them as entry points to pivot deeper into the charity’s network. Once inside, the attacker accessed fundraising databases, exported donor lists, and threatened to publish sensitive information unless a ransom was paid.
Real-world incidents show similar patterns: attackers often exploit weakly protected IoT devices, whether in the retail, healthcare, or public sectors, to gain initial access before moving on to more valuable targets.
As discussed in our webinar “The Cyber criminals are very good at targeting their Ransom demands based on… the size of organization, their ability to pay and even things like how well they’re insured… it’s very scientific process.”
While individual charity data breaches aren’t always publicised, the underlying tactics mirror those seen across sectors.
Protecting Your Nonprofit from IoT Security Threats
To keep your charity safe, a multi-layered approach to IoT security is crucial. Below are practical steps your organisation can take:
- Conduct a Cyber Audit
Begin with a thorough inventory of all IoT devices and associated risks. A robust cyber audit will help you spot unmanaged devices, weak configurations, and network segmentation gaps.
- Implement Strong Authentication and Encryption
Replace default passwords with strong, unique credentials and enable encryption for data both at rest and in transit.
- Segregate Your Network
Place IoT devices on isolated segments separate from core organisational systems to limit lateral movement by attackers.
- Update Firmware Promptly
Ensure devices are kept up to date with the latest security patches. Automate this where possible.
- Create a BYOD Policy
If staff or volunteers use personal devices to connect to organisational networks, you need clear rules. Developing a charity BYOD policy helps set expectations and enforcement mechanisms for secure device use.
- Build a Human Threat Hunting Culture
Technical controls matter, but so do people. Training your team to recognise anomalies, report suspicious behaviour, and respond proactively builds resistance. A culture where everyone feels responsible for security expands your technical defences, something discussed in this webinar excerpt:
- Address Cloud and Mobile Gaps
Addressing cloud and mobile gaps is vital because IoT devices rarely act alone; they rely on cloud servers for data storage and mobile apps for remote control. By securing these platforms, you protect the “backdoor” into your network, ensuring that sensitive donor data is encrypted while in transit and that unauthorised users cannot hijack device controls through vulnerable apps. Ultimately, hardening your cloud and mobile infrastructure provides the essential security layer that most IoT hardware lacks by default.
- Consider Cyber Insurance for Your Charity
Even with strong controls, breaches can happen. Cyber insurance for your charity can provide financial protection and access to incident response support should the worst occur.
Final Thoughts
IoT devices offer convenience and efficiency, but they can also expand your attack surface. By understanding common IoT threats and security issues, strengthening authentication, enforcing access controls, and embedding security into your culture, your charity can reap the benefits of connected technology without sacrificing security.
If your organisation isn’t sure where to begin, consider both preventive and responsive strategies. Alongside ensuring cyber essentials across your entire infrastructure, charities should treat IoT security as part of their overarching cybersecurity framework.
Worried about IoT security threats in your charity?
Qlic’s cyber security services are designed specifically for charities, helping you reduce risk from IoT devices, BYOD use, and everyday digital threats, all without stretching limited budgets. Find out how a tailored approach, backed by rigorous controls and expert guidance, can strengthen your defence.
IoT Security Threats FAQ
What are the 4 types of IoT?
- Common IoT categories include:
- consumer IoT (smart home)
- industrial IoT (manufacturing/operations)
- enterprise IoT (business tools)
- healthcare IoT (medical devices)
Why is IoT a cyber threat?
Because IoT devices often lack built-in security, may be exposed to public networks, and can act as gateways into broader infrastructure, making them appealing initial entry points for attackers.
What are the reasons IoT devices are considered a security risk?
They typically suffer from inadequate authentication, infrequent patching, lack of encryption, and limited management oversight, all of which magnify risk compared with traditional endpoints.
