Shadow IT is the term used to describe software-as-a-service (SaaS) applications that employees access and use without their IT department’s knowledge or consent. Shadow IT merely refers to the use of an app without formal IT approval or control; it doesn’t suggest that any such program is inherently defective or hazardous (which does create risk for an organization).

Enterprise employees could only use apps that IT made available because IT bought and managed packaged software for the entire firm before the cloud was invented. IT was in charge of licensing, software updates, and access privileges.

Users were no longer limited to using only programs that were specifically approved by IT with the advent of self-serve applications made available by the cloud and app stores. They had the option to work with the tools that helped them complete their tasks more quickly or easily, and they did so.

 

OCCURRENCE OF SHADOW IT

Shadow IT often develops when a worker has a specific task to complete and a preferred method for doing it. The worker may have past expertise with a particular app or prefer it because it has more functionality than the apps approved by the company. Another possibility is that the company has no sanctioned options at all in the category of apps that an employee needs.

Shadow IT can also happen when an employee uses a third-party program that is not authorized by their IT department. Of course, shadow IT frequently just comprises apps that employees use inside the company for amusement or private use.

The usage of unauthorized applications poses security risks in each of these situations. This is due to the lack of visibility and controls IT teams have over such programs.

 

RISKS OF SHADOW IT

In each of the circumstances, using unauthorized programs puts your security at risk. This is because IT staff don’t have much visibility or control over these programs –

1. Lost awareness and control – When data is moved to shadow IT, control and visibility are lost. Data leaks, security violations, and the inability to implement disaster recovery procedures involving data in shadow IT systems when necessary are among the concerns.
2. Invalid data – Shadow cloud-based data can be lost to organizations, especially if the user who owns it departs the organization. A straightforward illustration is a user’s own Dropbox account, where they store client contracts, plans, and other project documentation.
3. Systemic shortcomings – It is inefficient to store and use data across several infrastructure sites. IT departments cannot plan for capacity, system design, security, and performance across data in dispersed and compartmentalized shadow IT apps if the organization is not aware of the data flows. When many data versions exist in various unmapped locations, analysis and reporting are distorted and difficult.
4. Cost – The expense invested by the company to continue utilizing the service may not be justified whenever a shadow IT system becomes a crucial component of the project and IT users need to expand the resources. With SaaS applications like cloud storage, this is a prevalent worry.
5. Non-compliance – The risk of shadow IT might have significant repercussions for firms subject to strict compliance standards. Shadow IT adds more audit points where enhanced confirmation of compliance is required. For instance, IT users in a healthcare facility may be obliged to audit, identify, and disclose the extent and impact of each event if sensitive patient data is stored in Shadow IT cloud storage platforms.
6. Unknown increase in attack surfaces – Shadow IT widens organizational attack surfaces. Unmanaged data repositories exist outside of predetermined security restrictions. Weak or default credentials run the danger of letting the Internet see unmanaged assets. Shadow IT will not be covered by any of the organization’s threat log management, intrusion detection, or security information and event management (SIEM) systems.

 

REMEDIATIONS

1. Work together and communicate – Find out what IT users need. Separate the silos. To better understand the actual needs, experiences, and feedback of end-users regarding current and required new technologies, make it simple, convenient, and effective for IT departments and IT users to communicate with one another.
2. Educate and train – Users should be made aware of the dangers posed by shadow IT and how the company may help them meet their technological needs without circumventing established governance procedures. Employees who are security-conscious and who share the organization’s vision for IT security are more likely to comprehend the dangers of shadow IT and will be encouraged to discover suitable solutions to meet their technological needs.
3. Improve governance – Create an IT governance system that encourages innovation through the application of novel technologies that are swiftly recognized, examined, made available to, and supplied to IT users. Create user-centric policies and foresee their needs. Maintain a balance between the necessity to enforce policies and the freedom to develop and adapt to end users’ shifting IT needs.
4. Technology can be used to find shadow IT – Utilize technology to track unusual network activity, unforeseen transactions, data and workload migrations, IT consumption trends, and other signs of shadow IT operations. Organizations may be able to mitigate shadow IT issues more quickly with proactive discovery:

• You can find certain shadow IT instances by looking through on-premises configuration management databases and web filtering records.
• Finding shadow IT might also be aided by working with accounting to highlight unusual IT-related spending.

5. Evaluate and reduce the hazards – Shadow IT techniques don’t all present the same danger. Organizations can plan risk mitigation actions based on the risk sensitivity of each shadow IT offense with the help of an ongoing assessment of the technologies used in the workplace.