A significant data breach at Mars Hydro, a manufacturer of IoT grow lights, exposed 2.7 billion records due to inadequate security measures. The unprotected database contained sensitive user information such as Wi-Fi passwords and IP addresses. Security flaws included a lack of encryption, password protection, and regular security audits. This breach highlights critical vulnerabilities within the Internet of Things (IoT) ecosystem, posing privacy and security risks to users and financial and reputational risks to businesses. Recommendations emphasize strong authentication, data encryption, and proactive security audits for manufacturers, alongside password updates and network segmentation for users. The incident underscores the urgent need for collaborative efforts to improve IoT security and protect user data.