The hidden privacy risks of smart homes

Smart devices make life easier. There is no doubt about it. They brew coffee before you wake up, turn on lights when you enter a room, and show who’s at the door from your phone. But convenience comes with risk. Smart homes collect sensitive data, run software that can be vulnerable, and connect to wider networks that attackers can exploit. If you own smart devices, you’re part of a distributed attack surface – and many Europeans already are. This article explains the real, evidence-based risks of smart homes, how attackers exploit them, what the law and regulators say, and concrete steps you can take today to reduce risks.

• In 2024 about 70% of EU citizens aged 16–74 reported using internet-connected devices (smart TVs, smart speakers, doorbells, smart watches and more). This shows smart-device adoption is common across Europe,¹
• ENISA lists availability (including IoT-related outages), ransomware and data theft among the top threats to the digital ecosystem,
• The global number of connected IoT devices exceeded tens of billions and was forecast to grow to nearly 18.8 billion devices by the end of 2024, increasing the number of possible entry points for attackers,²
• Security vendors report that home networks face continuous attacks. Some vendor reports indicate multiple attacks per day against home devices and millions of blocked threats annually. These numbers show homes are actively scanned and targeted,³
• Regulators across Europe (e.g. ENISA, Data Protection Authorities) emphasize product security, supply-chain resilience and data protection for IoT and smart-home ecosystems. We should expect stronger regulatory pressure and guidance in the coming years.⁴

Compromised cameras and microphones can be used to spy on residents. Attackers have public access to doorbell cameras and baby monitors. The immediate harm includes invasion of privacy, extortion, or surveillance by abusive partners or stalkers.

Ransomware historically hit corporate targets, but smart-home ecosystems are increasingly implicated – attackers can extort households by threatening to expose recordings or lock access to smart locks, heating systems, and so on.

Data from devices can feed social-engineering attacks. Credit card numbers stored in voice assistant accounts, or attacker access to online receipts, increases exposure.

Using IoT devices that control heating, gas detectors, or medical devices creates physical danger. ENISA highlights the combined risk when cyber and physical systems intersect.

Many devices rely on vendor cloud services. If the vendor’s cloud is unavailable due to attack or outage, your devices may stop functioning. This is a non-obvious but increasingly common availability risk emphasized by EU cyber reports.

European regulators are moving toward stricter security requirements for connected devices. ENISA provides guidelines for securing the IoT supply chain and national initiatives push for minimum baseline security (for example unique credentials, vulnerability reporting). At the same time, data-protection authorities enforce GDPR principles for personal data collected by smart devices. Expect more mandates on manufacturers for secure-by-design and transparency.

Below are concrete actions you can implement immediately. I’ve ordered them from fastest to implement to more involved measures.

1. Update devices and firmware regularly

Manufacturers release security patches. Apply firmware updates promptly and enable automatic updates whenever available. If a vendor stops supporting a device, consider replacing it.

2. Use strong, unique passwords and a password manager

Avoid default passwords. Use a password manager to generate and store unique passwords for device accounts and vendor portals. If a device allows local login, change default credentials to a unique password. For devices that support it, use passphrases rather than single words.

3. Enable multi-factor authentication (MFA)

Where vendor accounts exist (cloud dashboards, mobile apps), enable MFA. That adds a second barrier if credentials are stolen.

4. Segment your network

Create a separate guest or IoT network for smart devices, isolated from your main PCs and NAS. Many consumer routers support VLANs or guest Wi-Fi. Segmentation limits threat spreading if a device is compromised.

5. Disable unused features and services

Turn off remote access and cloud backups if you don’t use them. Disable microphones or cameras when not needed, or physically cover cameras if possible.

6. Use a reputable router and keep its firmware updated

Your router is the home network’s first line of defence. Use a router from a vendor that provides regular security updates. Replace routers that no longer receive firmware patches.

7. Adopt a minimal-privilege approach

Give devices and accounts only the permissions they need. Avoid granting broad access (e.g., device apps with full contact or location access when not required).

8. Harden vendor cloud accounts

Use strong recovery options, unique email addresses for device accounts where practical, and review vendor privacy settings for data retention and sharing.

9. Monitor logs and notifications

Enable device notifications for login and firmware changes. Check cloud dashboards periodically for unfamiliar devices or sessions.

10. Plan for end-of-life and secure disposal

When you replace a device, factory-reset it and follow vendor instructions for secure disposal, remove tied cloud accounts and wipe storage if possible.

When shopping for smart-home devices, look for:

• Transparent update policy where vendor states how long devices receive security patches,
• Unique default credentials or mandatory initial-password change,
• Local control option (not cloud-only) for critical devices.
• Security certifications or third-party audits, and clear vulnerability disclosure programs.
• Data minimization where vendor collects only what is necessary and publishes retention policies.
• Interoperability over proprietary lock-in that avoid devices that force you into a single-cloud ecosystem without export/backup options.

No matter who you talk to, if the person is not very into new technologies use simple language like “Some gadgets can be tricked into giving away video, location or control. We’ll update them, use different passwords, and keep them on their own Wi-Fi so a single problem doesn’t affect everything.” Focus on practical steps and share the checklist above.

Governments and communities have a crucial role to play in making smart homes safer. They should mandate baseline security features for all consumer IoT devices, such as unique default credentials and reliable update mechanisms, to ensure products are secure from the moment they are activated. Clear, easy to understand product labels on security and privacy would help people make informed choices and compare devices before purchasing. Public funding could support local cyber helpdesks or hotlines that assist households in recovering from device compromises, reducing the long-term impact of attacks. Finally, authorities should push vendors to be more transparent about how long their devices will receive updates and how they handle vulnerability disclosures, following guidance from organizations like ENISA

Smart homes are convenient, but they also reshape the risk profile of everyday life. You don’t need to be scared – you need a plan. Start with the checklist, demand better practices from vendors, and keep an eye on regulatory changes in the EU that will raise the baseline for everyone.

For comprehensive guidance on securing your connected world and protecting your privacy online, explore Digital safety section. The more interconnected our daily systems become, the more critical it is to build resilience and enforce accountability.

Sources

1. EC, “Use of Internet of Things by individuals” ↩︎
2. IOT Analytics, “State of IoT 2024” ↩︎
3. Netgear, “Every 24 Hours, Home Networks See an Average of 10 Attacks. Is Your Network Secure?” ↩︎
4. ENISA, “Guidelines for Securing the Internet of Things” ↩︎