An IoT-based technique is suggested for detecting single-phase earth faults (SEFs) in 6–35 kV cable networks with an isolated neutral. Unlike existing methods based on measuring zero-sequence currents with traditional current transformers, the suggested technique uses a passive magnetically controlled contact (reed switch) placed in the magnetic field of a cable. This enables recording fault currents of 0.5–2.0 A without external power supply and ensures galvanic isolation. The novelty of this technique is the combination of a reed switch current sensor with an IoT platform: instantaneous values of current are measured by the duration of the closed state of the contacts, then the data are transmitted via a radio channel (LoRa 433 MHz, LoRaWAN, or NB-IoT) to a cloud-based SCADA/EMS system for remote monitoring. The amplitude of the current is calculated from the pickup and resetting currents, as well as the duration of the closed state of the contacts; no high-frequency ADC is required. During experimental tests of a prototype with a KEM-5 reed switch and a TZL-10 current transformer, the difference between the calculated and actual protection operation current was no more than 10–5%. Oscillograms confirmed the correct operation of the device when starting, under load, and during an artificial SEF with a current of 1.6 A. The device response time is a fraction of the industrial frequency period, which significantly reduces the emergency mode duration. The suggested system enables decreasing the system average interruption duration index (SAIDI) and the system average interruption frequency index (SAIFI) by selectively disconnecting a damaged section and preventing cascading faults. The use of two independent channels (current transformer and reed switch) increases the reliability of SEF detection and reduces the risk of false operation. Thus, the developed IoT-based technique improves the reliability, safety, and cost-effectiveness of cable network operation.