Vasco Veloso discusses privacy and security issues in IoT at Pixels Camp 2017, emphasizing the risks related to device supply chains, physical and software vulnerabilities, and network exposure. He advocates for robust risk mitigation strategies including secure development practices, unique credentials, and privacy-enhancing techniques, while underscoring the importance of designing systems with security and privacy as primary considerations. The presentation also highlights real-world IoT security breaches to illustrate the urgency of addressing these challenges.