FedP3E: Privacy-Preserving Prototype Exchange for Non-IID IoT Malware Detection in Cross-Silo Federated Learning

As IoT ecosystems continue to expand across critical sectors, they have become prominent targets for increasingly sophisticated and large-scale malware attacks. The evolving threat landscape, combined with the sensitive nature of IoT-generated data, demands detection frameworks that are both privacy-preserving and resilient to data heterogeneity. Federated Learning (FL) offers a promising solution by enabling decentralized model training without exposing raw data. However, standard FL algorithms such as FedAvg and FedProx often fall short in real-world deployments characterized by class imbalance and non-IID data distributions -- particularly in the presence of rare or disjoint malware classes. To address these challenges, we propose FedP3E (Privacy-Preserving Prototype Exchange), a novel FL framework that supports indirect cross-client representation sharing while maintaining data privacy. Each client constructs class-wise prototypes using Gaussian Mixture Models (GMMs), perturbs them with Gaussian noise, and transmits only these compact summaries to the server. The aggregated prototypes are then distributed back to clients and integrated into local training, supported by SMOTE-based augmentation to enhance representation of minority malware classes. Rather than relying solely on parameter averaging, our prototype-driven mechanism enables clients to enrich their local models with complementary structural patterns observed across the federation -- without exchanging raw data or gradients. This targeted strategy reduces the adverse impact of statistical heterogeneity with minimal communication overhead. We evaluate FedP3E on the N-BaIoT dataset under realistic cross-silo scenarios with varying degrees of data imbalance.

Deep Learning Based XIoT Malware Analysis: A Comprehensive Survey, Taxonomy, and Research Challenges

The Internet of Things (IoT) is one of the fastest-growing computing industries. By the end of 2027, more than 29 billion devices are expected to be connected. These smart devices can communicate with each other with and without human intervention. This rapid growth has led to the emergence of new types of malware. However, traditional malware detection methods, such as signature-based and heuristic-based techniques, are becoming increasingly ineffective against these new types of malware. Therefore, it has become indispensable to find practical solutions for detecting IoT malware. Machine Learning (ML) and Deep Learning (DL) approaches have proven effective in dealing with these new IoT malware variants, exhibiting high detection rates. In this paper, we bridge the gap in research between the IoT malware analysis and the wide adoption of deep learning in tackling the problems in this domain. As such, we provide a comprehensive review on deep learning based malware analysis across various categories of the IoT domain (i.e. Extended Internet of Things (XIoT)), including Industrial IoT (IIoT), Internet of Medical Things (IoMT), Internet of Vehicles (IoV), and Internet of Battlefield Things (IoBT).