I wrote a blog post last month on what your IoT startup can learn from the LockState debacle. In the intervening weeks, not much new information has come to light about the specifics of the update failure, and it seems from their public statements that LockState thinks it's better if they don't do any kind of public postmortem on their process failures, which is too bad for the rest of us, and for the Internet of Things industry, in general - if you can't learn from others' mistakes, you (and your customers) might have to learn your own mistakes.
However, I did see a couple of interesting articles in the news related to LockState. The first one is from a site called CTOVision.com, and it takes a bit more of a business-focused look at things, as you might have expected from the site name. Rather than looking at the technical failures that allowed the incident to happen, they take LockState to task for their response after the fact. There's good stuff there, about how it's important to help your customers understand possible failure modes, how you should put the software update process under their control, and how to properly respond to an incident via social media.
And on The Parallax, a security news site, I found this article, which tells us about another major failure on the part of LockState - they apparently have a default 4-digit unlock code set for all of their locks from the factory, and also an 8-digit "programming code", which gives you total control over the lock - you can change the entry codes, rest the lock, disable it, and disconnect it from WiFi, among other things.
Okay, I really shouldn't be surprised by this at this point, I guess - these LockState guys are obviously a bit "flying by the seat of your pants" in terms of security practice, but seriously? Every single lock comes pre-programmed with the same unlock code and the same master programming code?
Maybe I'm expecting too much, but if a $2.99 cheap combination lock from the hardware store comes with a slip of paper in the package with its combination printed on it, maybe the $600 internet-connected smart lock can do the same? Or hell, use a laser to mark the master combination on the inside of the case, so it's not easily lost, and anyone with the key and physical access can use the code to reset the lock, in the (rare) case that that's necessary.
Or, for that matter - if you must have a default security code for your device (because your manufacturing line isn't set up for per-unit customization, maybe?), then make it part of the setup process to change the damn code, and don't let your users get into a state where they think your product is set up, but they haven't changed the code.
It's easy to fall into the trap of saying that the user should be more-aware of these things, and they should know that they need to change the default code. But your customers are not typically security experts, and you (or at least some of your employees) should be security experts. You need to be looking out for them, because they aren't going to be doing a threat analysis while installing their new IoT bauble.