Shadow IT assets refer to unauthorized IT systems, devices, software, applications, and services used within an organization without approval from the IT department. Employees often rely on personal devices, third-party applications, or unsanctioned cloud services to complete work-related tasks instead of using officially approved IT tools
When shadow IT assets connect to the corporate network, they create cybersecurity risks by introducing vulnerabilities that hackers can exploit. These unauthorized devices and applications increase the risk of data breaches, compliance violations, and full-scale cyberattacks, making shadow IT a significant security concern for organizations.
The Risks of Shadow IT Assets
Each shadow IT asset that connects to the corporate network expands the organization’s attack surface, creating new entry points for cybercriminals. Unauthorized devices, applications, and cloud services can be exploited to execute network attacks, leading to potential data breaches and infrastructure compromises.
Because shadow IT assets are not centrally managed, IT teams struggle to detect abnormal behavior and respond to security incidents promptly. This lack of visibility allows cybercriminals to operate undetected for extended periods, increasing the likelihood of data exfiltration, malware infections, and compliance violations.
To learn more about the different levels of shadow IT and their impact, refer to the National Cyber Security Centre (NCSC) Guidance on Shadow IT.
Shadow IT Assets and Unauthorized Network Connections
Unauthorized network connections are a common way shadow IT assets introduce security risks. Here are some examples:
- Personal Devices: When an employee connects a personal router, external storage device, or unauthorized application to the corporate network, it creates an unmanaged access point. These connections can be used for file sharing, running unapproved software, or bypassing security controls, increasing the risk of data leaks and cyber threats.
- Rogue Access Points: Setting up an unauthorized wireless access point—whether for convenience or malicious intent—creates a shadow network connection. This weakens network security, making it easier for attackers to intercept traffic or gain unauthorized access to sensitive systems.
- Compromised Devices: If a network-connected device (such as a printer, IoT device, or server) is infected with malware, it can establish unauthorized connections to external servers. These compromised devices operate outside IT’s visibility, allowing cybercriminals to exfiltrate data or launch attacks from within the network.
How Shadow IT Assets Introduce Security Risks
The risks of unauthorized network connections are significant due to the lack of oversight and security controls. IT security teams implement strict network configurations and security protocols to protect the organization. However, when shadow IT assets bypass these protections, they introduce serious cybersecurity threats, including:
- Security Vulnerabilities: Unauthorized connections often lack firewalls, encryption, or endpoint protection, creating exploitable weaknesses that attackers can target.
- Spreading Malware: Shadow IT devices may already be compromised, allowing malware to spread across the network, infecting critical systems.
- Data Breaches: Without proper access controls and monitoring, sensitive data can be exposed or exfiltrated through unauthorized devices, leading to compliance violations and financial losses.
Without proper access controls and monitoring, sensitive data can be exposed or exfiltrated through unauthorized devices, leading to compliance violations and financial losses.
Mitigating Shadow IT Assets Risks
To reduce the risks associated with shadow IT assets, organizations must enhance network visibility, educate employees on the dangers of unauthorized devices, and enforce strict security policies.
Sepio’s Asset Risk Management (ARM) platform helps organizations gain full network visibility and detect unauthorized connections, reducing the risks posed by shadow IT assets. By securing all network-connected devices, IT teams can minimize the attack surface and protect against potential cyber threats.
Endpoint Security
Organizations must detect and prevent unauthorized shadow IT assets and malicious hardware that bypass traditional endpoint security solutions. Key threats include:
- USB Attack Tools: Malicious USB devices capable of evading endpoint security defenses.
- USB Implants: Hidden payloads that execute when specific keywords are typed, enabling covert cyberattacks.
- Malicious USB Cables: Compromised cables that appear normal but can exfiltrate data or deploy malware (Juice Jacking).
- Unauthorized Storage Devices: Used for data theft and exfiltration, making them a critical security concern.
- Mobile Phones as Storage Devices: Advanced data exfiltration tools disguised as innocent personal devices.
- Wi-Fi Keyloggers: Capture and transmit keystrokes wirelessly, enabling unauthorized access to sensitive data.
Network Security
The presence of unauthorized or dual-use devices increases shadow IT risks and exposes networks to cyber threats. Key security concerns include:
- Dual-Use Network Devices (e.g., Raspberry Pi): While useful, they can be weaponized for unauthorized access.
- Anomalous Asset Behavior: Suspicious activity from shadow IT assets or unmanaged devices.
- Unmanaged Switches: Can indicate shadow IT presence, allowing unauthorized network expansion.
- Network Taps & Hubs: Enable data theft, reconnaissance, and lateral attacks, often leveraging living-off-the-land (LOTL) techniques.
- Attackers Behind Unmanaged Devices: Exploiting unsecured network hubs and switches to infiltrate systems.
- Sleeping Devices: Dormant hardware implants or unused devices waiting to be remotely activated.
- Hidden Devices: Unauthorized devices masquerading as legitimate hardware.
- Network Anomalies: Unusual traffic patterns signaling potential cyber threats.
- Consumer-Grade Devices: Rare, unmanaged shadow IT assets that introduce unknown risks.
Identifying and mitigating these threats requires continuous monitoring and full asset visibility. Solutions like Sepio’s Asset Risk Management platform help organizations detect, control, and eliminate shadow IT risks before they lead to data breaches or cyberattacks.
Manage Your Network Devices Effectively
Gaining full visibility into network devices is crucial for eliminating blind spots caused by shadow IT assets. By leveraging physical layer data, organizations can detect and mitigate unauthorized devices that traditional security solutions overlook.
Schedule a demo today to see how Sepio helps secure your network against shadow IT risks and unauthorized devices.
