How to Protect Smart Home Data from Hackers

Smart home devices are convenient but come with risks. Hackers can exploit weak passwords, outdated firmware, or unencrypted data to access your personal information. Protecting your smart home is simpler than you think. Here's how:

1. Secure Your Wi-Fi Network: Use WPA3 encryption, set strong passwords, and create a separate network for smart devices.

2. Protect Each Device: Change default passwords, disable unnecessary features, enable two-factor authentication (2FA), and update firmware regularly.

3. Encrypt and Limit Data Sharing: Choose devices with end-to-end encryption, use secure communication protocols like SSL/TLS, and reduce unnecessary data sharing.

4. Monitor Device Activity: Use network monitoring tools and anomaly detection systems to identify unusual behaviour. Educate household members on security best practices.

Key takeaway: Combine strong passwords, encryption, and regular monitoring to keep hackers out of your smart home. These steps help protect your privacy and ensure your devices work as intended.

Secure Your Home Wi-Fi Network

Your Wi-Fi network is like the main gate to your smart home. It’s the first line of defence, and keeping it secure is essential to protect your devices and data.

A survey conducted in 2025 revealed that homes using network segmentation experienced 60% fewer successful breaches of smart devices compared to those with a single unified network ^[1]. This highlights how important it is to secure your Wi-Fi setup.

Use Strong Encryption Protocols

The best way to secure your data as it travels between devices and your router is to use WPA3 encryption. This is the latest standard and offers stronger protection against brute-force attacks.

Most routers in New Zealand now support WPA3 by default. If yours doesn’t, access your router settings by typing 192.168.1.1 or 192.168.0.1 into your browser and look for the wireless security options. If WPA3 isn’t available, WPA2 is a good alternative, provided you pair it with a strong password. However, avoid older protocols like WEP or open networks, as they’re highly vulnerable to attacks.

If your router doesn’t support WPA3, it might be time for an upgrade. This is particularly important if you’re adding more smart devices to your home. Many internet providers in New Zealand offer modern routers, or you can purchase one from local electronics stores.

Once your encryption is set, the next step is to secure your network with a strong password.

Create and Update Strong Passwords

Default passwords provided by manufacturers are often the same across thousands of devices, making them easy targets for hackers. A 2024 NIST report found that over 40% of smart home breaches stem from weak Wi-Fi security ^[3].

When creating your Wi-Fi password, follow these tips:

• Make it long: Aim for at least 12 characters.

• Mix it up: Use uppercase and lowercase letters, numbers, and special characters.

• Avoid personal details: Don’t use information someone could guess from your social media.

• Keep it unique: Don’t reuse passwords from other accounts.

For example, a password like "MySmartHome2024!" is stronger and easier to remember than something overly complex like "P@ss1."

It’s also a good idea to change your Wi-Fi password every 3–6 months, especially if you’ve moved into a new home or suspect unauthorised access. Regular updates prevent long-term breaches that might otherwise go unnoticed.

If managing multiple passwords feels overwhelming, consider using a password manager. These tools can generate strong, unique passwords and store them securely, so you don’t have to remember them all.

Once your encryption and passwords are sorted, focus on your network’s structure to enhance security further.

Set Up Network Segmentation and Firewalls

Network segmentation is a smart way to limit the impact of potential breaches. By creating a guest network specifically for smart devices, you can isolate them from your main network, where sensitive information like banking details may be stored.

Most modern routers make this easy. Log into your router’s admin interface and look for options like "Guest Network" or "IoT Network." Connect all your smart devices - such as cameras, lights, and speakers - to this separate network. This way, if a hacker compromises a smart light bulb, they won’t automatically gain access to your main devices like laptops or phones.

For added protection, enable your router’s built-in firewall. While most routers come with this feature, it’s not always turned on by default. Check your settings and activate the firewall. Look for features like intrusion detection, automatic updates, and traffic monitoring to strengthen your defences.

Some New Zealand internet providers also offer enhanced security packages, including advanced firewalls and monitoring services. While not essential, these can be helpful for households with extensive smart home setups.

Lastly, don’t forget to update your router’s firmware regularly. Manufacturers release updates to fix vulnerabilities that hackers could exploit. Check for updates every 3–6 months or enable automatic updates if your router supports it.

By taking these steps, you can protect not just your data but every smart device in your home.

Moving into a new home? When setting up utilities and internet, consider using a service like Movinghub to compare broadband providers. 

Enable Device-Level Security Features

Securing your network is essential, but don't stop there - each smart device in your home needs its own layer of protection. Think of it as locking the doors to each room in your house. Even if someone manages to break in through the front door, they shouldn't have free access to everything inside. Device-level security serves as an extra barrier, preventing attackers from taking control of individual devices, even if the network is compromised. Here’s how to strengthen the security of your devices.

Change Default Passwords and Disable Unnecessary Features

Default passwords are a glaring security risk. Many manufacturers use generic login credentials across thousands of devices, and these default passwords are often shared publicly online. Attackers use automated tools to find devices with unchanged default credentials, making them easy targets ^[3].

The first step? Change the default password on every device. Create strong passwords that are at least 12 characters long and include a mix of letters, numbers, and symbols. Avoid using personal information like birthdays or names, and make sure each device has its own unique password. If managing multiple passwords feels overwhelming, a password manager can simplify the process by generating and securely storing them. Update these passwords every 6–12 months or immediately if you suspect a breach.

Additionally, disable any features you don’t need, as these can act as potential entry points for attackers. Features like universal plug-and-play (UPnP), remote access, and automatic device discovery are often enabled by default but may not be necessary for your setup. For example, if your smart camera is only used for monitoring, turn off its automatic discovery feature to minimise risk.

Keep Firmware Updated

Passwords alone aren’t enough - keeping your device firmware up to date is just as important. Firmware updates are designed to fix vulnerabilities that hackers might exploit. When manufacturers discover security flaws, they release updates to patch them. Ignoring these updates leaves your devices open to attacks targeting outdated software ^[3]. Think of it as giving your devices a regular health check.

Enable automatic firmware updates whenever possible. For devices without this option, set a monthly reminder to manually check for updates, especially for critical devices like smart locks, security cameras, and alarms. Follow the manufacturer’s instructions carefully when updating, and keep a record of update dates to ensure nothing is missed. Subscribing to email notifications for firmware updates is another easy way to stay informed.

Enable Two-Factor Authentication

Two-factor authentication (2FA) provides an extra layer of security for your devices. Even if someone manages to crack your password, they won’t be able to access your device without completing a second verification step ^[3]. With 2FA enabled, logging in requires both your password and a secondary factor - usually a code from an authenticator app or sent to your phone. This makes it much harder for attackers to gain access, even if your credentials are compromised in a data breach or phishing attack.

For the best protection, use authenticator apps like Google Authenticator or Authy instead of SMS codes, which can be intercepted. To set up 2FA, go to your device’s security settings and look for options like "Two-factor authentication" or "Multi-factor authentication." The setup process usually involves scanning a QR code to link your device with the authenticator app. Activate 2FA on all compatible devices, prioritising high-value targets like security systems, smart locks, and cameras. After enabling it, test the setup by logging out and back in, and store backup codes securely in case you lose access to your authenticator app.

Moving to a new home? This is an ideal opportunity to review the security of all your smart devices. Start fresh by implementing these measures to protect your new smart home setup. Services like Movinghub can make the transition easier, helping you organise everything while keeping your devices secure.

Encrypt and Protect Your Data

Securing your smart home isn’t just about locking down individual devices - it’s also about safeguarding the data they generate. Once you've taken steps to secure your Wi‑Fi and device settings, the next priority is protecting your data through encryption and mindful sharing practices. Think of encryption as a digital safe: even if someone intercepts your data, they won’t be able to decipher it. With over 40% of smart home device breaches attributed to unencrypted data or weak communication protocols, taking charge of your data security is more critical than ever ^[1].

Use End-to-End Encryption

End-to-end encryption (E2EE) ensures your data remains private from the moment it leaves one device until it reaches its destination. This means that even if hackers intercept the data, it will appear as gibberish to them. E2EE is particularly important as more smart home devices rely on cloud-based services to function ^[3].

When purchasing smart home devices, look for products that specifically mention E2EE in their specifications. Many modern security cameras, smart locks, and voice assistants now include this feature as standard. Before you buy, check the manufacturer’s website or product documentation for encryption details. If the information isn’t clear, don’t hesitate to reach out to customer support for clarification.

Interestingly, a 2023 survey found that nearly 60% of smart home users didn’t know whether their devices used end-to-end encryption ^[1]. Don’t be part of that statistic - double-check that this feature is enabled in your device settings after installation. Most devices will have encryption options located in the privacy or security sections of their companion apps.

Once you’ve secured your data with E2EE, the next step is to ensure secure communication protocols are in place.

Use Secure Communication Protocols

Protocols like SSL and TLS encrypt the data transmitted between your devices and cloud servers, protecting it from eavesdropping and tampering. This is especially important when your devices connect over Wi‑Fi networks, which can be vulnerable to attacks ^[3].

When evaluating smart home devices, confirm that they support SSL/TLS for secure communication. Additionally, make sure your home Wi‑Fi network uses WPA3 encryption, which offers stronger protection against brute-force attacks and is increasingly becoming the standard for leading smart home brands ^[1].

Reduce Data Sharing

Many smart home devices collect and share more data than necessary - everything from usage patterns to location data and even audio recordings. Reducing this data sharing can significantly lower your exposure to breaches and give you more control over your personal information ^[1].

Dive into your device’s privacy settings and disable options like “analytics sharing,” “usage data,” or “cloud storage” if they’re not essential. For instance, if your smart thermostat functions perfectly without sending usage data to the manufacturer, switch off that feature.

Choose devices that process data locally rather than relying on the cloud. Devices like smart switches, sensors, and cameras that handle data within your home offer greater privacy while still delivering the benefits of automation. This growing trend towards local data processing reflects a shift in consumer priorities, as more people demand solutions that prioritise privacy.

Whenever possible, opt for devices that don’t require constant connectivity to cloud services. By keeping sensitive data within your home, you minimise the risk of external breaches ^[1].

Setting up a smart home for the first time? This is the perfect chance to build privacy into your system from the ground up. Companies like Movinghub can help you compare home services and utilities that integrate securely with smart home setups, ensuring your new system balances convenience with robust data protection.

Monitor and Manage Device Activity

Once you've secured your data with encryption and secure communication protocols, the next step is keeping a close eye on your smart home devices. Did you know that over 70% of smart home breaches happen because of weak passwords or a lack of awareness? Staying alert to what your devices are doing can be the difference between catching a problem early and dealing with a major security breach ^[3]. Monitoring device activity is a critical layer in building a strong defence for your smart home.

Your smart devices generate a ton of data - everything from temperature adjustments to security camera footage. The challenge isn’t collecting this information; it’s knowing what’s worth paying attention to and how to act when something doesn’t seem right. By 2025, more than 60% of smart home security systems are expected to include AI-driven analytics that help homeowners identify unusual activity without needing to dive into technical details ^[2].

Use Network Monitoring Tools

Network monitoring tools provide a clear overview of all the devices connected to your home network. They track activity and data usage, and many modern routers now come with built-in dashboards that make monitoring easier than ever.

Start by accessing your router’s admin panel. Most routers today have a section showing connected devices, from your smart TV to security cameras. Keep an eye out for devices you don’t recognise, especially if they’re connecting at odd hours or consuming an unusual amount of data. For instance, a spike in data usage late at night could indicate a potential breach.

Pay attention to unusual behaviours like unexpected data transfers, devices communicating with unfamiliar IP addresses, or connections during odd times. Cybersecurity experts often recommend setting up a separate network exclusively for smart devices. This setup not only simplifies monitoring but also prevents compromised devices from accessing sensitive information on your main network ^[3].

In New Zealand, many local internet service providers offer router management apps that display activity data in straightforward formats. These apps often show data usage in gigabytes and connection times in a 24-hour format, making it easy to spot anything unusual. Some even include alert features that notify you via text or email if suspicious activity is detected.

Set Up Anomaly Detection Systems

Anomaly detection systems take monitoring to the next level by analysing how your devices typically behave and flagging anything out of the ordinary. These systems can handle far more data than any person could manually review and improve over time as they learn your household’s routines ^[2].

Here’s how they work: the system observes normal patterns - like when your smart thermostat adjusts the temperature, how often your security cameras record motion, or when your smart lights turn on and off. Once these patterns are established, the system quickly identifies deviations that could signal a security threat.

For example, AI-powered cameras can tell the difference between a pet and a potential intruder, reducing false alarms ^[2]. This means fewer unnecessary alerts while still ensuring you’re notified of real threats.

Look out for red flags like unauthorised network access attempts, unexpected firmware updates, sudden spikes in data usage, or devices trying to connect when they’re usually inactive. Machine learning algorithms continuously refine their accuracy, making your system better at distinguishing real threats from harmless activity over time.

When setting up these systems, configure different alert levels. For instance:

• Critical alerts: Unauthorised access attempts.

• Medium alerts: Unusual data transfers.

• Low-priority alerts: Routine maintenance activities.

This tiered approach helps you avoid alert fatigue while ensuring you’re immediately informed of serious issues.

Educate Household Members

Even with all the technical safeguards in place, human vigilance plays a huge role in maintaining security. Make sure everyone in your household understands basic security practices to minimise risks.

Start with simple, actionable rules that everyone can follow. These might include:

• Never sharing passwords with others.

• Learning to recognise phishing attempts in emails or messages.

• Reporting suspicious device behaviour immediately.

• Knowing which devices are connected to the home network.

• Understanding how to use security systems effectively.

Create a clear process for reporting unusual activity. This could be as simple as a shared family messaging group or a checklist near your router with steps to follow and emergency contact information.

For households with children or elderly members, use relatable explanations to drive the point home. For example, explain that smart home passwords are like house keys - they need to be kept safe. Regular family discussions about security updates and hands-on demonstrations of how to check device logs can also help keep everyone engaged.

Emergency protocols should be tailored to your household’s needs. Make sure everyone knows how to disconnect a suspicious device, contact your internet service provider if needed, and involve local authorities when necessary ^[4].

If you’re moving into a new home with smart devices, it’s the perfect time to establish these habits. Services like Movinghub can help you compare and set up home utilities that integrate securely with smart home systems, ensuring your monitoring tools are ready to go from the start.

Conclusion: Maintain Smart Home Security

Keeping your smart home secure demands ongoing attention. In 2023, global attacks on smart home devices surged by 50%, totalling over 1.5 billion incidents worldwide ^[3]. For New Zealand households, staying alert to digital threats is more important than ever.

The strategies we've discussed - like securing your Wi‑Fi network, activating device-specific protections, encrypting data, and monitoring activity - work best when used together. At the heart of it all, strong authentication acts as your first and most reliable line of defence. This layered security approach needs consistent upkeep to remain effective.

To ensure long-term protection, make it a habit to update firmware without delay, review device permissions regularly, and keep everyone in your household informed about new risks. Opt for devices that process data locally to align with the Privacy Act 2020 and reduce exposure to external threats.

For New Zealanders setting up a secure smart home, Movinghub offers a streamlined way to get started. They not only connect utilities securely but also provide a comparison of services from over 20,000 providers. This means your smart home setup begins with a solid, secure foundation. If you're moving, consider their concierge services to help arrange utility connections that integrate seamlessly with your smart home systems, ensuring security is built into the process.

With more than 30% of New Zealand households now owning at least one smart device, prioritising smart home security isn't just a good idea - it’s becoming a necessity. By staying proactive, exploring new security features, and adapting to evolving threats, you can protect your family's privacy and digital well-being. A secure smart home is one that grows with the challenges of the digital age.

FAQs