65% of companies with shadow IT suffer data loss

The rise of SaaS applications and solutions has revolutionized the way we work. However, the unsanctioned use of these tools, known as shadow IT and shadow SaaS, poses a significant risk to corporate networks.  

A recent study reveals that the top risks associated with these practices include data loss (65%), lack of visibility and control (62%), and data breaches (52%). In fact, one in ten companies surveyed suspect that the use of tools without the consent of their IT teams has led to a data breach. 

4 top risks of shadow IT and shadow SaaS 

From a cybersecurity standpoint, the indiscriminate use of SaaS applications and licenses can severely compromise an organization's security posture. Lack of control over the tools being deployed exposes companies to a variety of threats, including: 

1. Data breaches and account takeovers:

   As they are not subject to company security policies, unsanctioned applications may contain vulnerabilities that cybercriminals exploit to access sensitive information. Employees who deploy these tools may also inadvertently share sensitive data or fall prey to social engineering attacks, facilitating data breaches and account takeovers. 

2. Malicious code enters systems due to the lack of control inherent in shadow IT:

   This occurs through intentional actions and carelessness, increasing companies’ susceptibility to ransomware attacks. 

3. Unmitigated vulnerabilities:

   If they use unauthorized software, organizations can lose control over their systems, making it difficult to apply security patches in a timely manner. This increases vulnerability to cyberattacks.  

4. Regulatory non-compliance:

   Regulated organizations must be extremely cautious with shadow IT. Unsanctioned IT activities can lead to regulatory non-compliance, putting a company's reputation at risk and exposing it to legal sanctions. 

The appropriate tools and scanning methods must be implemented to mitigate the threats that shadow IT and shadow SaaS pose to businesses. The first step IT managers can take to safeguard corporate systems is to keep an up-to-date catalog of all the company's technology infrastructure resources, including employee-owned devices, and then review it regularly. Adopting a proactive approach to detecting unauthorized applications, equipment, and services on the corporate network is also essential. This need can be met by deploying advanced solutions that offer full network visibility, allowing automatic discovery of all connected devices, mapping the network structure, and classifying each device according to its level of risk. Detecting and monitoring these elements can significantly reduce exposure to vulnerabilities and strengthen your organization’s security. With these capabilities, companies protect information, ensure regulatory compliance, and maintain system integrity.