A system and method are described for establishing a secondary communication channel between an IoT device and a client device. For example, one embodiment of a method comprises: establishing a primary secure communication channel between the IoT device and an IoT service using a primary set of keys; performing a secondary key exchange using the primary secure communication channel, the client device and the IoT device each being provided with a secondary set of keys following the secondary key exchange; detecting that the primary secure communication channel is inoperative; and responsively establishing a secondary secure wireless connection between the client device and the IoT device using the secondary set of keys, the client device being provided with access to data and functions made available by the IoT device over the secondary secure wireless connection.