IoT is a woven mixture of traditional systems, sensors, clouds, mobile applications, Web applications and control systems, affecting every aspect of people's lives. Security concerns are increasing with increasingly heterogeneous devices and data processing. It is also a well known fact that most of the IoT applications and devices are not fully secure and they are vulnerable to certain attacks. On an average, 60 percent IoT applications and devices have some sort of vulnerabilities associated with them. In this research work, an experimental setup is established using server computers, client computers, IoT development boards, sensors, cloud subscriptions. Network host scanning tools and vulnerability scanning tools are used to collect raw data related to IoT based applications and devices. Shodan scanning tool is also used to effectively detect vulnerabilities in IoT devices and perform penetration testing.