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THE MOST COMMON & MOST DANGEROUS TYPES OF SHADOW IT

January 12, 2023

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WHAT IS SHADOW IT?

Shadow IT is the use of information technology systems, devices, software,
applications, and services without explicit IT department approval. Individuals
and departments will stand up rogue systems, applications, and infrastructure to
meet their objectives. These objectives could be to make their jobs easier, more
efficient, or provide services outside of the normal workflow for asset
procurement and management by the information technology department.

Shadow IT is not usually implemented with malicious intent. More often, it is a
result of employees or departments faced with inefficiencies or roadblocks that
impede their productivity or completion of a time-sensitive business mission.

IT security doesn’t have to interfere with productivity. Click here to learn why

While shadow IT can improve employee, client, and vendor productivity, it can
also introduce serious security risks to your organization through data leaks,
potential compliance violations, and lack of proper resource management.


WHY IS SHADOW IT INCREASING?

Here are some reasons shadow IT continues to create such a high risk for
organizations:

 * Cloud adoption - Shadow IT has multiplied in recent years with the adoption
   of cloud-based applications and services. According to a workplace trends &
   insights report, in 2021, 97% of the cloud apps in use in the average
   enterprise were cloud shadow IT. This is largely because the setup,
   configuration, and usage can bypass internal procedures and controls.
 * Remote working – A 2021 HP Wolf Security report revealed that 91% of IT teams
   have felt pressure to compromise security to enable business continuity
   within remote and work-from-anywhere conditions. In addition, 80% of IT teams
   have experienced pushback from users after updating security policies to
   account for the remote workforce.
 * Employee efficiency - One of the biggest reasons employees engage in shadow
   IT is simply to work more efficiently. Numerous studies have indicated
   employees feel like they need to work around their company's security
   policies just to get their job done.
 * Collaboration - cloud applications like file sharing/storage and
   collaboration can result in sensitive data leaks due to improper data
   governance.
 * Personal email - Many employees send work documents to their personal email
   to work from home, or work from unsecured home networks, exposing data to
   networks that can’t be monitored by IT. A Work from Home Office Networks
   Survey revealed that 91% of devices in remote office networks have one or
   more services exposed on the internet, and 15% of remote network IP addresses
   have exposed cable modem control interfaces. In the end, there is no
   management for the information after it has left the organization’s domain.
 * Shadow IoT – Shadow IoT is an extension of shadow IT that occurs when
   internet of things (IoT) devices or sensors are in active use within an
   organization without IT’s knowledge. The challenge of shadow IoT isn’t just
   the number of devices added to the network, but also the capabilities of each
   device, like cameras, Wifi, and even coffee makers. These devices are also
   frequently built without enterprise-grade security controls and set up using
   easy-to-crack default IDs and passwords. When these are added to an
   organization’s main Wi-Fi network without IT’s knowledge, it can lead to a
   significant security risk and conduit for future attacks.

Click here to learn more about the top IoT security vulnerabilities


WHAT ARE THE RISKS OF SHADOW IT?

 * Introduction of malware - Every instance of shadow IT expands the
   organization’s attack surface. Since shadow IT devices and applications are
   not onboarded for protection by the organization’s cybersecurity solutions,
   and typically have weak credentials, they create an opportunity for malware
   and ransomware attacks based on poor security hygiene.
 * Creating backdoors for attackers –Shadow IT, and shadow IoT, by definition
   exist outside the view of IT security, which means any misconfigurations and
   vulnerabilities introduced will remain undetected, leaving an unmonitored and
   unprotected pathways for threat actors.
 * Increasing service desk tickets/strain - Shadow IT can often cause problems
   on workstations or create system incompatibilities that will inevitably add
   to the IT support team’s backlog when compatibility or performance issues
   arise.
 * Compliance & cyber insurance qualification issues – A breach that occurs as a
   result of shadow IT can create regulatory compliance issues, noncompliance
   fines, and penalties. Further, in the event a breach can be traced back to
   shadow IT, the organization may face grounds for nonpayment on a cyber
   insurance policy, revocation of that policy, and future cyber insurance
   ineligibility.
 * Unanticipated costs – In addition to the costs of the potential breach,
   downtime, and unscalability of shadow IT, there may be additional unseen
   costs. For instance, shadow IT could be purchased and left unused—such as
   when someone leaves the company—while payments continue to be made from a
   corporate, or even worse, a personal account.
 * Data loss and theft – Personal emails and personal storage accounts create
   areas for data and other assets to be stored beyond IT’s reach. Thus, they
   may not be backed up, and may not have provisions for disaster recovery or
   even a ransomware attack. If the employee leaves the company or has their
   personal accounts breached, that data will be unrecoverable and the
   supporting processes become unrecoverable.


THE MOST COMMON TYPES OF SHADOW IT

The most common forms of shadow IT might surprise readers or spur revelations of
incidents present in their own environments. Consider these top five shadow IT
types that plague the majority of businesses:

1. Shadow IoT devices

Shadow IoT devices include smart connected devices like fitness trackers,
wireless thermostats, cameras, wireless printers, smart TVs, and even some
medical devices. These are commonly used and overlooked by employees, and their
advancing capabilities mean even formerly innocuous items, like coffee machines
and fridges, have become potential pathways onto the corporate network for
threat actors.

2. SaaS Applications

The implementation of a cloud-based application that does not follow the normal
procurement process. The SaaS app may have local accounts that aren’t managed by
IT for access, multifactor authentication, nor improper behavior. These
applications may also pose a risk based on the vendor’s implementation, data
contained within, and improper scrutiny for security best practices and basic
hygiene, like data backups.

3. Virtual Machines

Most organizations have hypervisors on their desktops, servers, and in the
cloud. Shadow IT virtual machines are present everywhere for users to test
software, demonstrate a solution, operate specific applications, etc. The
ability to create and destroy virtual machines via a mouse click represents an
unacceptable shadow IT risk, when the assets are unmanaged. This can introduce
vulnerabilities, default accounts, poor configuration hygiene, etc. All virtual
machines used by an organization should be derived from managed templates or
snapshots to ensure their creation and runtime are properly managed.

4. Subnets

Businesses add offices, acquire other companies, and expand their networks.
Often, this results in routable subnets that are unknown to the business and,
ultimately, not managed. Only through discovery and verifying IP addresses
(assets) in logs can these shadow IT subnets be identified and put under
management.

5. Network Hardware

In many organizations, adding a device to the network is as simple as plugging
it into a network jack or connecting to WiFi with a username and password. These
devices can range from consumer-based WiFi Access Points to unmanaged printers,
cameras, TV’s, etc. Every unmanaged device that is added presents a risk since
no one is monitoring for vulnerabilities or inappropriate access. Network
hardware represents the earliest form of “shadow IT” and can be the Achilles
heel for a business—if combined with shadow IT subnets, virtualization, and
applications.

6. Local Applications

Every business has a few “one-off” applications on servers and end-user
workstations. A software inventory via an asset discovery engine can help find
these solutions; however, depending on the application, it can represent an
unacceptable risk. For example, if a user has installed a software KVM
(keyboard, video, mouse) solution to manage multiple assets with a single
keyboard and mouse—this can pose a high risk, if vulnerabilities are present. A
server with an unmanaged vendor monitoring solution that requires a username and
password could be a backdoor, if the storage of the credentials is not properly
secured by the solution for its services to operate. In the end, all
applications should be sanctioned and documented by IT, and “one offs” need to
be discovered to prevent application shadow IT.


THE MOST DANGEROUS TYPES OF SHADOW IT

The most dangerous types of shadow are truly based on risk. These are
applications that are unmanaged, that may be improperly licensed, and that are
not properly monitored. If we break these down to security disciplines, these
are resources that interfere with:

 * Vulnerability Management – Shadow IT that is assessed for vulnerabilities and
   prioritized for remediation
 * Patch Management – Shadow IT that is not scheduled for remediation via
   patches or security updates based on vulnerability information, or public
   disclosure by the vendor
 * Configuration Management – Shadow IT that is not properly hardened or
   configured to prevent inappropriate access to the application
 * Identity Management – Shadow IT that contains rogue user accounts not managed
   by IT. This may include orphaned accounts from former employees, or access
   for users outside of the scope of the business role
 * Privileged Access Management (PAM) – Shadow IT that has unmanaged privileged
   accounts or does not follow the concept of least privilege
 * Log Management – Shadow IT that does not have access, operational, and
   security logs monitored for inappropriate behavior.

In any organization, any one of these security disciplines can be a problem for
sanctioned assets. When shadow IT is present, odds are that multiple disciplines
are at issue, amplifying the problem. These become the most dangerous forms of
shadow IT because the overall hygiene of the deployment becomes a risk via
multiple attack vectors, and not just one discipline for a solution owner to
resolve.


HOW PAM ILLUMINATES SHADOW IT AND MITIGATES THE RISK

A properly implemented PAM solution can help you mitigate shadow IT risk to your
organization by: Providing visibility into the network:

1. Providing visibility into the network:

You can’t protect what you don’t know about. Knowing which devices have access
to your network, and which users have access to privileged credentials is an
important first step to defending your organization against shadow IT threats.
Organizations can leverage PAM discovery tools to detect the devices,
applications, subnets, and user credentials that are accessing the network. Once
the assets are detected, PAM tools can also help with onboarding, management of
privileges, monitoring, and auditing.


The Privileged Access Discovery Application uncovers unsecured privileged
accounts, SSH keys, services, and remote access tools in our environment in
minutes. Download it for free!

2. Enabling and enforcing Least Privilege:

PAM allows organizations to stop malware and ransomware attacks by enforcing the
principle of least privilege. PAM solutions can granularly control applications
on Windows, Mac, Unix, Linux, and network devices—all without hindering end-user
productivity. Some PAM solutions also provide Active Directory (AD) bridging
technology. This technology bridges the gap between Windows and Unix/Linux
operating systems by extending AD’s Kerberos authentication and single sign-on
(SSO) to them, simplifying and streamlining identity management. Creating a lack
of privileged access will help prevent an incident in a shadow IT deployment
from impacting sanctioned production assets.


3. Securing Remote Access for Service Desks and Vendors:

Traditional remote access methods, such as RDP, VPN, and legacy remote desktop
tools, lack granular access management controls. These services enable easy
exploits via stolen credentials and session hijacking. PAM solutions can provide
secure, VPN-less remote privileged access for vendors, internal employees,
service desks, and infrastructure. PAM enables organizations to apply least
privilege and audit controls over remote access. This can reduce the risk of
unauthorized remote access being implemented via shadow IT and the potentially
risky SaaS applications that connect into your environment.

In summary, PAM solutions not only discover, onboard, actively manage, and audit
shadow IT, the solutions also limit the potential damage caused by shadow IT by
restricting lateral movement and enforcing least privilege controls.

Need a VPN alternative? Click here to take the Remote Access test!


OTHER TIPS ON ADDRESSING SHADOW IT

For any business, the following IT policies can help address shadow IT:

1. Establish a proper management policy

Create and enforce a policy that all operations can follow when it comes to
managing shadow IT, regardless of whether the employee is on premise, remote, or
working in a hybrid environment.

2. Acknowledge shadow IT is present


Plan for the presence of shadow IT and provide a grace period for the
deployments to be placed under IT management, with no repercussions.
Potentially, some great IT and security solutions may be in the field that can
contribute positively to the organization, if properly empowered.

3. Support an open-door IT policy

Be open to new projects, ideas, and advice, and help provide prompt guidance for
design and deployment of new projects. IT departments should adopt policies of,
"Yes I can help you," versus resistance to change. Shadow IT tends to occur as a
response to the roadblocks with traditional IT. If the barriers are removed,
staff in other departments can become valuable allies. When departments
understand and embrace IT policies that provide enablement, shadow IT
environments tend to dry up and new ones do not form.

4. Adopt a policy for identifying shadow IT implementations

Use discovery techniques to detect shadow IT and classify its risk to the
business. For example, do the systems contain PII (Personnally Identifiable
Information), rogue users, or have vulnerabilities that are not being mitigated?
If they contain sensitive information, business leaders can be presented with
reasonable options to let IT manage the assets or have the systems
decommissioned.

5. Balance security with the requests

This is very important. Just because something sounds like a great idea and may
be easy to implement, it may not be in the best interests of the company. The
balance is agreeing on the need, improving the business, and adopting a secure
model to make it work. This requires a little give and take from both sides, but
it results in a supportable and secure solution that can meet the objectives of
all teams.


MOVING FORWARD SECURELY WITH SHADOW IT

Understanding what shadow IT exists and the risks it represents is key to
acknowledging and managing the issue. To that end, shadow IT and rogue employees
that create it will almost always exist. Denying their existence will ultimately
only hurt the business. It is important to understand why shadow IT exists, what
is the purpose, and how to make it supportable by the business. The response of
“shut it down” rarely has positive results. Assume positive intent and strive to
fix the problem together.

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MANAGEMENT

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INSIDE CLOUD SECURITY THREATS AND ATTACK VECTORS


MOREY J. HABER, CHIEF SECURITY OFFICER, BEYONDTRUST

Morey J. Haber is the Chief Security Officer at BeyondTrust. He has more than 25
years of IT industry experience and has authored three books: Privileged Attack
Vectors, Asset Attack Vectors, and Identity Attack Vectors. He is a founding
member of the industry group Transparency in Cyber, and in 2020 was elected to
the Identity Defined Security Alliance (IDSA) Executive Advisory Board. Morey
currently oversees BeyondTrust security and governance for corporate and cloud
based solutions and regularly consults for global periodicals and media. He
originally joined BeyondTrust in 2012 as a part of the eEye Digital Security
acquisition where he served as a Product Owner and Solutions Engineer since
2004. Prior to eEye, he was Beta Development Manager for Computer Associates,
Inc. He began his career as Reliability and Maintainability Engineer for a
government contractor building flight and training simulators. He earned a
Bachelor of Science degree in Electrical Engineering from the State University
of New York at Stony Brook.


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From January 10, 2023: BeyondTrust Named a 2022 Gartner Peer Insights™
Customers’ Choice for Privilege Access Management (PAM) From January 13, 2023:
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word word word word word word word word word word word word word word word word
word word word word word word word word word word word word word word word word
word word word word word word word word word word word word word word word word
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