This paper presents Ethical issues and Security challenges at that are related with Internet of Things. The goal of this IoT paper is to have a background about IoT and its issues. We looked for the most important issues. The most important issues were Ethical and Security. These are the most important sides that will influence our lives and how information. In terms of Ethical issues, we will look at the information how it will be stored and used, and in terms of Security how the attacker attack and use the information that is provided by IoT devices. This paper presents the ethical and security challenges in area of IoT. It also highlight the key issues identified in literature to raise the awareness about ethical issues in IoT.