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Recent attacks have highlighted the insecurity of the Internet of Things (IoT) paradigm by demonstrating the impacts of leveraging Internet-scale compromised IoT devices. In this paper, we address the lack of IoT-specific empirical data by drawing upon more than 5TB of passive measurements. We devise data-driven methodologies to infer compromised IoT devices and those targeted by denial of service attacks. We perform large-scale characterization analysis of their traffic, as well as explore a public threat repository and an in-house malware database, to underlie their malicious activities. The results expose a significant 26 thousand compromised IoT devices "in the wild," with 40% being active in critical infrastructure. More importantly, we uncover new, previously unreported malware variants that specifically target IoT devices. Our empirical results render a first attempt to highlight the large-scale insecurity of the …