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Yes, the IoT could turn out to be a security nightmare...

You are correct, and it goes much deeper. We have abandoned all reason in entrusting critical military, infrastructure, and even medical devices to networking connectivity.

Traces can be placed on circuit boards which can enable connectivity to non networked devices. Once the circuit board is irradiated with magnetic radiation (Think radio-frequency, or even microwaves) and the circuit powers up, and serves the function for which it was designed.

The CIA/NSA have used these techinques for over a decade to gain remote access to non-netowked devices. There are even built in "compartments" in CPU's which allow illicit access and for illicit access to encryption keys stored on a partticular computer. Network cards and even usb ports can be altered to serve this purpose as well. Nothing should be stored electronically, which in irreplaceable, nor should control of systems be placed entirely in the hands of computers. It is said the B-2 bomber is unable to be flown, unless the computers onboard do the flying (aka fly-by-wire).

Imagine an advesary releasing a virus upon our country, where we'd need to use all those ventilators, but they suddenly stop working, or worse, they kill the patient by pumping too much air in, or not enough. Cars are becoming more vulnerable by the day. Computers may well be our doom, particularly once AI decides we are a dangerous virus upon this planet.