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Internet technology is very pervasive today. The number of devices connected to the Internet, those with a digital identity, is increasing day by day. With the developments in the technology, Internet of Things (IoT) become important part of human life. However, it is not well defined and secure. Now, various security issues are considered as major problem for a full-fledged IoT environment. There exists a lot of security challenges with the proposed architectures and the technologies which make the backbone of the Internet of Things. Some efficient and promising security mechanisms have been developed to secure the IoT environment, however, there is a lot to do. The challenges are ever increasing and the solutions have to be ever improving. Therefore, aim of this paper is to discuss the history, background, statistics of IoT and security based analysis of IoT architecture. In addition, we will provide taxonomy of security challenges in IoT environment and taxonomy of various defense mechanisms. We conclude our paper discussing various research challenges that still exist in the literature, which provides better understanding of the problem, current solution space, and future research directions to defend IoT against different attacks.