Imagine your employee, in an effort to complete a task faster, uses a file sharing application without coordinating it with the IT department. It seems like no big deal, but this unregistered service could be the cause of a sensitive information leak. This is Shadow IT — a hidden threat that can cause serious damage to even the most secure company. A study by Cisco found that 80% of employees admit to using SaaS applications at work without getting approval from IT. This is the reason why more and more companies are turning to Attack Surface Management (ASM), which is the process of continuously detecting, analyzing, prioritizing, remediating and monitoring the vulnerabilities and potential attack vectors that make up an organization’s attack surface.
Below we take a closer look at what Shadow IT is and why it poses a big risk to companies; ImmuniWeb’s expert answer on how to defend Shadow IT will help you stay in business and effective.
What is Shadow IT?
The use of steel technology as part of the business toolkit is not always controllable. Shadow IT is a term that refers to a common situation where company employees perform their duties using unregistered devices, apps, or cloud services without informing the security department.
For example, you have a coworker who is comfortable using their smartphone for company email, or they are on a free collaboration app. So, these types of actions could be part of Shadow IT. Any cloud storage services, messengers, VPN services, etc., carry a hidden threat to the company if the IT security department does not formally implement them.
What is the danger if I use a trusted messenger or email application? — you ask your IT security department. Nothing is 100 percent secure, so by using unregistered resources, you further increase the risk of data leakage, malware introduction, or vulnerability to targeted attacks on your company’s corporate network. You’re not alone: more than 41 percent of corporate employees are using technologies for tasks that are not authorized by IT. And Gartner expects that number to grow to 75% by 2027. So to reduce the threat level, companies need to:
- Develop clear rules for the use of IT resources, which should include mandatory employee approval of any devices and applications used for work.
- Audit IT infrastructure on a regular basis to identify unregistered resources.
- Educate employees about the risks that may be associated with the use of uncertified technology.
It would seem that why not allow employees to use the technologies they are comfortable with, this is called BYOD (Bring Your Own Device). Companies are increasing productivity by using this concept. As an objection, it is important to realize that every device and every technology used by an employee becomes part of the corporate network. And that puts the entire company at risk if they are not properly protected.
But a complete ban on the use of personal devices and technologies is too repressive and irrational. The optimal solution is to use only certified and approved devices that meet the needs and security conditions for the network. In this way, both employee productivity and company security are ensured.
What are the risks of Shadow IT?
Shadow IT makes an organization’s IT infrastructure vulnerable to targeted attacks and confidential data leaks. Such threats are often ignored until it is too late.
- Confidential data leaks: For example, an employee may upload company data to their own cloud storage, which does not have security standards.
- Non-compliance with regulations: Some industries have a critical need to comply with standards such as GDPR or HIPAA.
- Increased attack surface: Shadow IT creates new entry points on the attack surface, complicating the protection of the corporate network. ImmuniWeb experts note that each new system not registered with IT increases the likelihood of a cyberattack by 10%.
One of the main difficulties associated with detecting Shadow IT is the lack of visibility of all the applications and services used. IT departments frequently learn about their existence only after something negative happens — one of the three above or all together. IBM research shows that in 2023, the average cost of a data breach is an astonishing $4.45 million, largely due to sanctioned or unaccounted-for systems. The problem can be prevented or the consequences of Shadow IT activity minimized with a service like Management of Attack Surface It is designed to identify and eliminate IT system vulnerabilities.
The stereotypical opinion that such ASM solutions require too many resources is actually unfounded. On the contrary, modern automated solutions make attack surface monitoring easier, thus saving time and effort for the company’s IT departments. The effectiveness of this approach is increased by regular employee training and explanations of the potential threats from using unregistered services and their consequences for the business.
How to protect against Shadow IT
To counter the threat of Shadow IT attacks, there is a strategy of countermeasures that covers technology, policy, and employee training.
- Implementing BYOD (Bring Your Own Device) policies: The BYOD concept allows employees to bring their devices to work. To reduce the risks associated with Shadow IT, install only corporate applications on personal devices, always use a VPN, and regularly update software.
- Using IT asset management tools: Modern tools such as Mobile Device Management (MDM) systems and Cloud Access Security Broker (CASB) platforms provide a comprehensive overview of the organization’s IT resources.
- Continuous audits and security risk assessments: For instance, managed IT services for businesses perform regular monitoring of the IT infrastructure which then helps identify and eliminate unauthorized access before they become a problem. This also encourages employees to comply with the company’s IT policies.
In the context of Shadow IT, controlling IT resources may seem challenging, but with the right approach and the use of modern technologies, the process will be simplified.
- Inform employees about IT resource policies: This will help avoid the use of shadow solutions.
- Provide certified tools that are necessary: If employees are offered convenient and secure options, they are less likely to turn to external services.
- Train employees and explain the threats: Trained employees are often the first line of defense against shadow IT.
For companies that consider IT project management a complex experience, it is recommended to simplify the implementation problem by using a phased approach: identifying key threats, selecting tools that address specific tasks, training employees, and implementing policies. For companies with insufficient financial resources, the solution can be found in the use of secure cloud services. This significantly reduces infrastructure costs while providing a satisfactory level of protection.
Conclusion
Shadow IT is a hidden threat that can cause serious damage to your business. Unauthorized devices and services increase the likelihood of confidential data leaks and security vulnerabilities. However, these risks can be effectively minimized with the right approach.
Transitioning to a secure level may require some investment, but it cannot be compared to the losses that a business may incur as a result of data breaches and cyberattacks. Taking care of the danger is always cheaper than dealing with it later. Therefore, control your digital ecosystem today. Apply a multi-layered approach to attack management to protect your business and prevent Shadow IT from becoming your vulnerability.
