The upgrade process is unable to check the image signature:
$ add system image http://packages.vyos.net/iso/release/1.1.7/vyos-1.1.7-amd64.iso
Trying to fetch ISO file from http://packages.vyos.net/iso/release/1.1.7/vyos-1.1.7-amd64.iso
% Total % Received % Xferd Average Speed Time Time Time Current
Dload Upload Total Spent Left Speed
100 234M 100 234M 0 0 2081k 0 0:01:55 0:01:55 --:--:-- 2171k
ISO download succeeded.
Checking for digital signature file...
% Total % Received % Xferd Average Speed Time Time Time Current
Dload Upload Total Spent Left Speed
100 836 100 836 0 0 1271 0 --:--:-- --:--:-- --:--:-- 2786
Found it. Checking digital signature...
gpg: directory `/root/.gnupg' created
gpg: new configuration file `/root/.gnupg/gpg.conf' created
gpg: WARNING: options in `/root/.gnupg/gpg.conf' are not yet active during this run
gpg: keyring `/root/.gnupg/pubring.gpg' created
gpg: Signature made Wed Feb 17 14:37:47 2016 CET using RSA key ID A0FE6D7E
gpg: Can't check signature: public key not found
Signature check FAILED.