Consumer Reports warns smart home devices pose increasing privacy and security risks despite convenience

As smart devices become more integrated into daily life, Consumer Reports highlights rising concerns over data collection, hacking vulnerabilities, and the need for better security measures to protect personal privacy in connected homes.

Smart home devices can make daily routines easier, but they also widen the number of ways personal data can leave the house. Consumer Reports says many internet-connected appliances now gather information far beyond what is needed to switch on a light, stream a video or run a fridge, and that can include location data, contact details and, in some cases, footage from inside the home. The concern is not only what a manufacturer collects, but where that information is stored, who can access it and how much control the user really has over it. According to Consumer Reports, some devices also create detailed behavioural profiles that can be used for marketing or shared with third parties.

The security risk is not theoretical. Consumer Reports pointed to a 2024 case in which a smart doorbell vulnerability left a video feed open to hackers over the internet, prompting recalls and a regulatory fine. More broadly, researchers have warned that smart appliances can become entry points into home networks if their apps or firmware are poorly protected. A systematic review published in MDPI Electronics found that many connected devices collect and transmit more data than their stated functions require, while also enabling inference attacks that can reveal occupancy patterns and appliance use even without a direct breach. A separate literature review on arXiv identified privacy intrusion as one of the most common harms associated with smart home systems.

That does not mean consumers must abandon connected devices altogether. Consumer Reports and the National Institute of Standards and Technology both suggest a more practical approach: reduce exposure by tightening controls. Installing firmware updates is one of the most important steps, because patches often close known vulnerabilities. Keeping smart appliances on a separate Wi-Fi network from phones and laptops can also limit the damage if one device is compromised. Review privacy settings carefully and avoid handing over data that is not needed for the product to function. A light bulb, for example, should not need a birthday or age profile to work properly.

The broader lesson is that convenience has an ongoing cost in data, and that cost is often hidden. NIST has found that consumers generally understand the trade-off, but many do not have the technical knowledge to secure their devices effectively on their own. That places more responsibility on manufacturers to offer clearer privacy settings, stronger default protections and better explanations of what is being collected. For buyers, the safest approach is to treat privacy and security as purchase criteria, not afterthoughts. A more expensive product from a reputable brand may still be the better choice if it is less likely to expose a home to tracking or hacking.