01 November 2024
Kirk Jensen, senior product marketing manager, WatchGuard
In today’s digital workplace, the rise of Software as a Service (SaaS) applications has dramatically transformed how businesses operate, enhancing flexibility and productivity.
However, unsanctioned use of these tools, often referred to as shadow IT or shadow SaaS, presents a significant and growing risk to corporate security. As employees turn to unapproved applications to accomplish their tasks, they inadvertently expose their organisations to a myriad of cybersecurity threats.
Recent findings underscore the magnitude of these risks, with 65% of companies suggesting the biggest risks they perceive include data loss due to shadow IT, while 62% report a lack of visibility and control over their digital environments as a major concern. Some 52% of 250 security professionals interviewed in the survey, conducted at the Infosecurity Europe event suggested data breaches are a deep concern when it comes to using unauthorised tools.
“When employees deploy these tools without oversight, they may inadvertently share sensitive information or fall victim to social engineering attacks, resulting in data breaches and account takeovers.”
Alarmingly, one in ten companies suspect that such unapproved use of software has already resulted in a breach, highlighting the critical need for tighter security controls and oversight.
Further underlining the depth of the issue of shadow IT, the UK’s National Cyber Security Centre (NCSC) released guidance in 2023 on how to better manage the problem.
From a cybersecurity perspective, the proliferation of shadow IT and shadow SaaS can severely undermine an organisation’s security posture. Unsanctioned applications that bypass corporate IT controls often contain vulnerabilities that cybercriminals can exploit.
When employees deploy these tools without oversight, they may inadvertently share sensitive information or fall victim to social engineering attacks, resulting in data breaches and account takeovers. Furthermore, the lack of control associated with shadow IT creates an entry point for malicious code, which can increase a company’s susceptibility to ransomware and other cyberattacks.
Operational challenges
Shadow IT also introduces significant operational challenges. When unauthorised software is used, organisations lose control over their systems, making it difficult to apply necessary security patches promptly. This leaves the door open for potential exploits and increases the organisation’s exposure to cyber threats. For regulated entities, the risks extend even further. The use of unsanctioned IT activities can lead to non-compliance with regulatory requirements, potentially damaging a company’s reputation and exposing it to legal penalties.
Companies need to adopt a more proactive approach to detect and manage unauthorised applications and services. The challenge is not just in identifying these tools but in effectively monitoring and mitigating the associated risks.
Effective risk management begins with maintaining a comprehensive and up-to-date catalogue of all technology resources, including employee-owned devices, and conducting regular reviews to ensure compliance and security.
To safeguard corporate systems, it is crucial for organisations to implement tools and scanning methods that detect unauthorised software and devices on the network. Advanced solutions that provide full network visibility can automatically discover all connected devices, map network structures and classify each device according to its level of risk. This approach not only minimises exposure to vulnerabilities but also strengthens an organisation’s overall security stance.
As businesses continue to navigate the complexities of digital transformation, it is vital to recognise and address the hidden dangers posed by shadow IT. By enhancing visibility and control over their digital environments, organisations can protect their information, ensure compliance and maintain the integrity of their systems, even as the threat landscape evolves.
