Cyber‑Physical Risk: How IoT Faults Can Trigger Electrical Fires in Industrial Networks

Over 1.35 billion individuals were affected by data compromises in the United States during 2024. Those attacks range from a simple misplaced debit card to malware infecting an industrial piece of equipment. While automations have made life easier in many cases, specific devices expose businesses to higher risk.

The growth of Industrial IoT (IIoT) is transforming the way we manufacture. Smart sensors, remote monitoring, and predictive analytics all help with cathodic corrosion or electrical load balancing, but they also place additional demands on physical systems. That can lead to electrical fire risk when such IIoT devices cause faults.

The last thing any organization needs is the hidden nature of cyber-physical risks, which can cause or interrupt fire mitigation strategies. Proactive assessments are essential to ensuring these devices help, not hinder operations.

Cyberattacks Can Manipulate Physical Systems into Dangerous States

Most cyberattacks target finance or insurance. In 2021, manufacturing became the second-highest target of such attacks. Not just plants focused on oil refinery or cement manufacturing, but also the crucial infrastructure and government agencies that support civilian life.

Phishing, ransomware, internal breaches, and equipment sabotage due to vulnerabilities in IIoT device software are all real risks that threaten your electrical systems, especially when connected to SCADA systems. These devices can be manipulated to send false reports or alarms to machinery, overriding safety protocols and spoofing temperature and voltage readings. Everything could appear to be operating within safe parameters, when in reality, a hacker across the globe is ramping up a system to overheat and cause a fire.

Integration Gaps Leave Dangerous Blind Spots

Most industrial facilities operating today have a mix of legacy electrical systems with some modern IoT platform integration. That could be electrical distribution monitoring, HVAC automation, lighting control, energy management, or remote machinery operation. If there is any poor interoperability between these systems, it can and will lead to missed signals and delayed responses to failures.

Imagine a backup generator for a healthcare provider going unnoticed by a separate energy monitoring dashboard, all because the two systems aren’t properly synced. That single point of failure represents a gap that can cause the primary system to remain under full load, even with the backup generator silently overheating.

Hardware Deficiencies and Poor Installations Compound Risk

The most common link of risk between IoT devices and your systems is physical installation. Fire risk happens because cables weren’t terminated correctly or connections weren’t torqued to spec. Arc faults from poor connections are still the top cause of electrical fires, and IIoT installations add complex layers to that process.

Never install IIoT or simple IoT hardware without first consulting a qualified team of experienced electrical or forensic engineers. They can conduct an electrical load analysis and audit your systems to ensure that connections are accurate, operating as designed, and not placing additional stress on any components. A “plug and play” IoT device may seem harmless, but when put under stress, it can quickly contribute to circuit failure and thermal ignition.

Overloading and Load Imbalance from Too Many Devices

There is no denying the power of IIoT to improve system efficiency. A recent blog post from leading manufacturer GE highlights how IIoT technology enables sensors to gather data, store it wirelessly, and utilize analytics and machine learning (ML) to provide reporting or inform decision-making.

While those benefits are powerful, they can lead to some businesses overloading their electrical systems by adapting technology too quickly. The snowball effect of dozens of devices communicating with one another 24/7 places additional power draws and generates more heat. You must conduct regular electrical load analyses to minimize the risk of overloading branch circuits and panels.

Most Common IIoT Points of Failure

To be clear, IIoT comes in a massively diverse set of form factors. What works for a waste-to-energy plant in Houston will not be the same for a recycling manufacturing plant in Maine. That is why it helps to hire an engineering firm when installing multiple IIoT devices. You want some “heads up” as to the most common IIoT points of failure, like:

• Sensor data falling into error, collecting bad quality flags
• Control failure with PLCs or controllers that don’t have a backup power source in place
• Control communication failure due to network communication errors
• Long delays in software updates are causing systemic overloads
• Faulty or overloaded circuits
• Poor installation and maintenance
• Aging or damaged equipment
• Cyberattacks gaining control of connected industrial settings
• Environmental factors
• Gross negligence from improper training and oversight

IIoT isn’t inherently dangerous. When implemented well and maintained correctly, they can significantly reduce the risk of electrical fires. Smart sensors can help detect abnormal heat signatures before the breaker trips or alert teams to circuit strain from load balancing issues. There can even be automated shutdown protocols to isolate faults and contain thermal buildup. However, all of these benefits rely on a clean, secure, and well-integrated network.

Put another way, IIoT is only as safe as the infrastructure and processes supporting it. You must schedule regular inspections by qualified engineers, ensure that software is up to date, train your employees and managers on cybersecurity safeguards, and ensure that everyone, from the top down, understands the risks.

Best Practices for Engineering Teams and Facility Managers

At Dreiym Engineering, we don’t want to come to your location for a forensic engineering consultation after a fire. If we’re there, it means something really bad happened, and you need an expert. We’d much rather help you prevent any damage in the first place. In that vein, here are some handy tips you can use to ensure your IIoT devices won’t cause any harm:

• Always schedule regular electrical load analysis so load imbalances or circuit stress don’t go unnoticed.
• Utilize internal teams or hire consultants for cyber-physical audits to verify the interaction between your digital systems and physical infrastructure, particularly with switchgear and control rooms.
• Enforce various access controls around SCADA and IIoT devices, as well as secure device configuration.
• Unify all your monitoring systems (HVAC, electrical, backup power, water, etc.) so they communicate through a single dashboard that your managers can quickly assess.

The final preventive measure you want to take is to verify all installations with an expert. Don’t risk having an intern install sensors if they lack proper training. You want someone with expertise in the area so that you not only get the system online correctly, but also gain insight into how to maintain it or identify potential faults in the future.

Don’t Let Smart Devices Cause Dumb Fires

The power of IIoT devices is drastically transforming how manufacturing and industrial sites operate. The trick is not letting cyber-physical security become a frontline fire safety concern. While every sensor or controller may bring improved visibility, it also introduces additional vulnerabilities.

Do your best to avoid IoT faults, whether through hacking, poor integration, or hardware flaws, by working with experts. When done, hire our team at Dreiym Engineering for audits, electrical load balancing, ground testing, and short-circuit analysis. We can offer that little extra peace of mind you, your insurance, and your legal team prefer.