How DNS security can kick-start the process of managing shadow IT

Shadow IT, or the use of IT systems, software, devices, applications, as well as services without the approval of the IT department, is one of the serious reasons why companies face grave security hazards.

But before it is too late, many organizations may not be aware that shadow IT is creating a gap in their structure. The security teams now have a dilemma since they may not have the tools to keep track of a shadow IT issue that affects the entire organization. So, what exactly are the security issues and how can organizations solve them?

The Evolution of Shadow IT

Although it is evident that shadow IT is a bane to organizations, it is hard to pinpoint who is responsible for it. There isn’t a single straightforward reason as to why shadow IT exists in companies.

One of the key reasons is that newer generations have grown up with technology more than the previous generations. So, the usage of unauthorized software as well as devices by employees is motivated by a "convenience" factor. Having the Internet, using certain pieces of software everyday, and a phone that does everything has become a part of modern life. If the newer generation approaches a firm that has a constricted environment, they feel limited in a corporate network. Hence, most people feel that they cannot do their work efficiently without using unapproved applications, which in turn becomes a feeding ground for shadow IT.

Another major reason for the rise of shadow IT is the widespread usage of out-of-date software by businesses. Outdated software does not have the upgrades that are found in modern software, which, in turn, leads to shadow IT. On top of this, the lack of monitoring and inventory/asset management means that security teams are completely unaware of these problems. When these issues are not resolved by the organization, they can lead to major security threats.

Why does shadow IT expose organizations to cyber threats?

The majority of larger organizations are still busy with cloud migration projects and performing other similar tasks. These projects build up technical depth, which in turn becomes a foundation for shadow IT.

There are significant vulnerabilities within shadow IT that threat actors can use to deploy cyberattacks. Users are used to utilizing services and applications directly via the cloud. They do not necessarily think of risks, but rather of resources that will help them complete their tasks successfully. The threat surface increases as more workers utilize more and more applications. For example, employees might use applications like Dropbox or Wetransfer, which might not be approved by the IT teams, and therefore if left unmonitored, put the company at risk. Again, this can be driven by not having an adequate alternative application.

The recent generalization of remote work has seen an explosion of shadow IT, with employees often using unsecured applications from home. Due to these degraded networks, it results in the company’s sensitive data being at risk, irrespective of the security procedures the company might have in place. For example, in July 2022, UK broadband operator Anvil Mobile discovered a new exploit, which hijacks end-user routers and then proceeds to spew out cyber-attacks.

Additionally, data stored on a network, such as a home network, that does not adhere to business network standards, is vulnerable to hacking. So, if you are working remotely and you upload sensitive data to a piece of software that isn’t necessarily secure, you are putting the whole company in peril. The problem is using facilities that are not guaranteed or that are not approved by corporate IT. The company might be put at risk because of a single lapse in judgement.

Why have organizations failed to manage their shadow IT problems in the past?

When organizations fail to fully understand the risks of shadow IT then security is not prioritized. According to our report, 61 percent of organizations have not made shadow IT a priority when securing their networks. As long as employees continue to use unauthorized devices and applications, the problem of shadow IT exacerbates and further damages an organization’s security posture.

What’s more, users want tools to quickly increase their productivity. Employees easily adopt the cloud application because they have a wide range of free tools. This then drives the problem of shadow IT.

How can organizations combat the issue of shadow IT?

Organizations can take control of their shadow IT problem through DNS (Domain Name System) security.  DNS can track the utilization of services, behavior and provides a data-source to compare against. For example, you see dropbox queried many-times, but it is not a validated/approved service.

DNS traffic and network data help businesses understand the online behavior of their employees and hence detect the issues of shadow IT. Shadow IT can be detected in terms of unmanaged cloud apps as well as apps that are not sanctioned. Additionally, DNS can also identify, flag, and keep track of machine-to-machine communications.

When it comes to identifying shadow IT for a company, DNS has quickly become the primary solution. Our research has shown that 51 percent of organizations use the DNS as their main tool in order to detect shadow IT.  Organizations can use network data leverage because DNS provides complete visibility across clouds and apps. As a result, it gives security teams more visibility into cloud-based applications, which in turn, enables them to recognize and keep an eye on shadow IT.

Once organizations understand the solution they want to put in place, it is also important to model networks before they deploy them professionally. The automation of model networks helps organizations adapt their solutions to fit both their business and security needs.

By understanding the issue of shadow IT within their business and implementing the correct policies, organizations can finally combat all the hidden security issues and be confident that they have full visibility across all devices and applications within their network.

Photo Credit: Hans-Joachim Roy/Shutterstock

Chris Buijs is the Chief Evangelist at EfficientIP.