A system and method are described for performing asset and user tracking. For example, one embodiment of a system comprises: an Internet of Things (IoT) device or hub (“IoT device/hub”) comprising authorized user detection logic to detect a security IoT device of a user in wireless proximity to the IoT device/hub, the IoT device/hub to be affixed or integrated within a data processing asset; location detection logic to determine a current location of the IoT device/hub based on signals received from one or more wireless devices within its wireless range; wherein the authorized user detection logic is to arm the location detection logic upon detecting that the security IoT device has moved out of wireless proximity to the IoT device/hub; and wherein the location detection logic is to generate an alert and/or notification after being armed by the authorized user detection logic upon detecting that the IoT device/hub has moved outside of a designated protected location, the alert and/or notification being transmitted from the IoT device/hub to an IoT service.