Physical security devices are more sophisticated than ever before, with manufacturers constantly releasing newer, more advanced technology to help physical security teams secure their businesses. 

But this level of technological advancement comes with new risks; specifically, cyber-risks. In fact, the very systems you rely on to protect your business – from surveillance, to access control, alarms, intercoms, shooter detection, emergency power supplies and more – could ironically provide a perfect opening for cyber criminals to cause enormous damage. And as these devices become more integrated into critical infrastructure, the potential risks and impacts of security breaches increase exponentially. 

Alarmingly, studies have shown that the typical physical security device fleet is replete with unaddressed cyber vulnerabilities; from default or weak passwords, to outdated firmware and IoT device certificates, to devices that have reached end of service and are no longer supported by their manufacturer. Leaving physical security devices with unaddressed vulnerabilities of this kind can result in significant costs – both tangible and intangible. 

Here are seven potential ways a cyber attack via your physical security devices could harm your organization.

Financial Impact

One of the most immediate and measurable costs of unaddressed device vulnerabilities is financial. According to IBM’s Cost of a Data Breach Report 2024, the average data breach in the U.S. costs $9.36 million. These costs include not only the immediate response and remediation efforts, but also long-term expenses such as legal fees, regulatory fines, and increased insurance premiums. Businesses may also face costs related to downtime and lost productivity as they work to address the breach.

Reputational Damage

Beyond the direct financial costs, organizations must also consider the impact of a cyber security incident on their reputation. For example, a data breach can severely damage a company’s image, eroding customer trust and loyalty. This reputational damage can in turn lead to a loss of business as customers seek out competitors they perceive as more secure. Rebuilding a tarnished reputation often requires significant investment in marketing and public relations efforts, which can further strain financial resources.

National Security Implications

In some cases, the consequences of unaddressed device vulnerabilities extend far beyond individual organizations to impact national security and wider society. The attacks on U.S. water facilities – which started in November 2023 and continued well into 2024 – are a stark example of this. 

In those attacks, hackers exploited IoT devices with default passwords such as “1111,” to gain access and disrupt operations. Similar vulnerabilities in critical infrastructure, including airports, hospitals and government institutions, pose severe risks to public safety and national security. Like other IoT devices, physical security devices are commonly left with default passwords that are easy to guess, making them highly vulnerable to brute force attacks of this nature.

Operational Disruption

Security breaches can also jeopardize physical security more directly, specifically by causing significant operational disruption. Compromised devices may need to be taken offline for investigation and remediation, leading to downtime and loss of functionality. In industries where continuous operation is critical, such as healthcare and transportation, even short periods of downtime can have severe consequences, including risks to human life.

Legal and Regulatory Consequences

Organizations that fail to adequately protect their security devices may face legal and regulatory consequences. Data protection laws and regulations are becoming increasingly stringent, and non-compliance can result in hefty fines and sanctions. Additionally, organizations may be subject to lawsuits from customers or partners affected by the breach, further compounding the financial and reputational damage.

Intellectual Property Theft

Another potential cost is the theft of intellectual property (IP). Breaches can expose sensitive information, including proprietary technology, trade secrets, and strategic plans. The loss of IP can undermine a company’s competitive advantage, leading to long-term business challenges.

Increased Insurance Costs

Following a security breach, organizations often face increased insurance premiums. In particular, cyber insurance providers adjust premiums based on the perceived risk and history of incidents; a breach can signal higher risk, resulting in more expensive insurance coverage in the future.

How Can You Ensure Your Devices Aren’t a Cybersecurity Liability?

The risks of neglecting the cyber protection of physical security devices are profound and multifaceted, impacting everything from finances and reputation to national security and operational integrity. As the integration of these devices into critical infrastructure grows, so too does the potential for devastating breaches. 

To safeguard against these threats, businesses must proactively address vulnerabilities, ensuring that their physical security measures do not become liabilities in an increasingly interconnected and dangerous digital landscape.

Discover how you can ensure your devices are protected against cyber threats – download The 7 Essentials for Cyber-Protecting Physical Security.