This study evaluates multi-factor authentication protocols for IoT environments, addressing key security challenges and identifying potential vulnerabilities. It serves as a guide for researchers and practitioners in selecting appropriate authentication methods, with a strong emphasis on secure data exchange within the dynamic IoT landscape. The research highlights the importance of secure data exchange within the IoT ecosystem and the critical role of IoT-enabled emergency logistics in maintaining supply security during crises. Furthermore, it introduces interaction-based authentication (IBA) as a robust solution for secure IoT interactions, ensuring adaptability and scalability. Additionally, the study explores smartphone-based proximity-based access control (PBAC) solutions, addressing the challenges posed by the absence of user interfaces on many IoT devices. Finally, the review investigates the transformative impact of IoT in healthcare, including tele-monitoring and remote health supervision, while emphasizing the need for dynamic adaptability, scalability, and robust defense mechanisms against attacks in IoT ecosystems, particularly in identity authentication.