The proliferation of digital technologies among North Carolina businesses has created new avenues for cybercriminals to exploit. One of the most significant vulnerabilities is shadow IT, the unauthorized use of IT applications within an organization. Shadow IT not only compromises security but also disrupts operations and can lead to costly data breaches.
This article delves into the prevalent issue of unauthorized Software-as-a-Service (SaaS) applications, exploring strategies to regain visibility and control over these rogue IT initiatives.
What is shadow IT?
In 1989, a pioneering ransomware attack targeted medical researchers worldwide, highlighting the vulnerability of early digital systems. The incident, spread via a diskette or floppy disk, serves as a stark reminder of the evolving threat landscape. At the time, antivirus solutions were rudimentary, and panicked researchers resorted to drastic measures, wiping their hard drives to contain the infection.
This event also marked an early instance of shadow IT, where employees utilize unsanctioned technology, often operating outside the purview of IT security. In the worst-case scenario, shadow IT can be deliberately used to undermine company policies or compromise sensitive data.
What are the main shadow IT categories?
Shadow IT can be boiled down to two main types:
- Using unauthorized IT systems and tools such as portable storage devices, mobile devices, remote work devices, public Wi-Fi networks, SaaS applications and browser extensions, personal IoT devices, and online gaming platforms.
- Storing business data in unauthorized IT systems such as personal cloud storage systems, SaaS applications, personal or semi-personal (shared) computing devices, and public-use computers.
What are the root causes of shadow IT?
Several factors contribute to the proliferation of shadow IT:
- The ubiquity of technology – The widespread availability of devices and cloud services has blurred the lines between personal and work technology, creating opportunities for shadow IT to emerge.
- Cybersecurity awareness gaps – Employees may lack sufficient understanding of cybersecurity risks, making them more susceptible to vulnerabilities.
- Optimism bias – A false sense of security can lead individuals to underestimate the likelihood of cyberattacks, leading to complacency.
- Productivity pressure – The emphasis on productivity can drive employees to seek unauthorized tools to enhance efficiency, even if it means circumventing company policies.
- Limited solution options – If authorized tools fail to meet your employees’ unique needs, they may resort to unauthorized alternatives.
- Human error – Accidental use of personal accounts for work-related activities can inadvertently introduce shadow IT.
What are the risks of shadow IT?
Below are some of the most common risks of shadow IT:
- Zero-day attacks – Shadow IT applications tend to be overlooked by security teams. This creates opportunities for hackers to exploit vulnerabilities and launch zero-day attacks, leading to data breaches, unauthorized access, and ransomware infections.
- Data leaks – Shadow IT apps usually collect and store sensitive data, exposing organizations to data breaches and privacy violations.
- Account hijacking – Malicious applications can phish for credentials or exploit vulnerabilities to gain unauthorized access to employee accounts.
- Ransomware attacks – Ransomware often leverages shadow IT to infiltrate corporate networks and encrypt data, demanding a ransom for decryption.
- Data loss – Bugs or errors within shadow IT applications can result in accidental data deletion or corruption, disrupting operations and causing financial losses.
- Noncompliance – Shadow IT can put you at risk of violating data privacy regulations, exposing your organization to legal and financial penalties.
- Delayed incident response – The unauthorized nature of shadow IT can hinder timely detection and response to security incidents, exacerbating the impact of attacks.
How can organizations manage these risks?
The growing prevalence of shadow IT necessitates proactive measures to mitigate its risks. Here are some effective strategies to address shadow IT and safeguard your organization’s security.
- Establish a comprehensive shadow IT policy – A well-defined policy outlining acceptable technologies, usage guidelines, data handling practices, and consequences for noncompliance is crucial.
- Foster cybersecurity awareness – Invest in comprehensive training programs to educate employees about cybersecurity risks and best practices.
- Partner with a reputable managed cloud security provider – An experienced and well-equipped cybersecurity service provider gives your small business the level of protection only normally experienced by large enterprises.
Shadow IT, while often driven by well-intentioned efforts to improve efficiency, poses significant risks to an organization’s security and operations. Avoid these by implementing robust security measures, fostering cybersecurity awareness, and establishing clear guidelines for technology usage.
Protect your business from risks associated with shadow IT by partnering with Refresh IT. Our We provide strategic cybersecurity consulting and managed cloud security services that will help lower the risk of shadow IT. Contact us today to learn more.