In a statement provided to CNBC, Fitbit said that the company "is committed to protecting consumer privacy and keeping data safe. The privacy and security of our users' data is a top priority and the trust of our customers is paramount."
PKWARE—which services about 30,000 enterprise customers for security and compression solutions—recently called connected devices one of the biggest future cybersecurity threats. The issue received more public scrutiny this week after researchers hacked into a Jeep's computer software, prompting a Fiat Chrysler recall.
Read MoreFiat Chrysler recalling 1.4M vehicles amid hacking defense
Newton believes regulations surrounding networked devices will not reduce the threat. Rather, he said, companies that make the products need to take two crucial steps to cut risk.
"The smartwatch and wearable devices are a category that really does trouble me," Newton said.
Manufacturers need to design products so that health and other personal data can only be accessed by one person, Newton said. He added that they need to strengthen current encryption software in the devices.
Apple declined to comment.