Which risk arises from outdated IoT firmware?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Outdated IoT firmware can create a significant risk of escalated cyberattacks. This occurs because vulnerabilities in outdated firmware can be exploited by attackers. As technology evolves, so do the methods and tactics used by cybercriminals. If firmware is not updated, devices may lack critical patches designed to fix known security vulnerabilities, making them prime targets for attackers.

These vulnerabilities can lead to unauthorized access, enabling attackers to control devices, steal data, or use compromised devices as part of larger botnets to launch additional attacks. Hence, as more devices become interconnected through the Internet of Things (IoT), the risks associated with obsolete firmware are magnified, leading to potential escalated cyberattacks on not just the individual devices but also the entire network they are part of.

While other options may relate to potential security risks, they do not directly capture the specific consequence of having outdated firmware as effectively as escalated cyberattacks do. For instance, device spoofing usually refers to mimicking legitimate devices to gain access, while information theft pertains specifically to unauthorized breaches of data. Physical threats often deal with tangible risks to devices themselves rather than the cybersecurity implications of outdated software. Thus, focusing on the ramifications of outdated firmware aligns best with the chosen answer regarding the heightened

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