Shadow apps, a segment of Shadow IT, are SaaS apps purchased without the knowledge of the security team. Although these programs may be legitimate, they operate in the blind spots of the corporate security team and expose the company to attackers.
Shadow programs can include instances of software that the company already uses. For example, a development team can create their own GitHub instance to keep their work separate from other developers. They can justify the purchase by pointing out that GitHub is an approved add-on because it is already being used by other teams. However, because the new instance is being used outside of the security team’s view, it lacks control. It may store sensitive corporate data and lack basic protections such as MFA enabled, enforced SSO, or may suffer from lax access controls. These misconfigurations can easily lead to risks such as stolen source code and other problems.
Types of shadow programs
Shadow programs can be classified based on their interaction with an organization’s systems. Two common types are Island Shadow Apps and Integrated Shadow Apps.
Shadow standalone programs
Standalone shadow programs are programs that are not integrated into the company’s IT ecosystem. They operate as an island in isolation from other company systems and often serve a specific purpose, such as task management, file storage, or communication. Without visibility into its usage, corporate data can be mishandled, resulting in the potential loss of sensitive information as data is fragmented across disparate platforms.
Integrated shadow programs
Integrated shadow applications are much more dangerous because they connect or interact with an organization’s approved systems through APIs or other integration points. These apps may automatically sync data with other software, share information with authorized apps, or share access across platforms. As a result of this integration, threat actors can compromise the entire SaaS ecosystem, and shadow apps act as a gateway to access integrated systems.
How Shadow Apps Affect SaaS Security
Data security vulnerabilities
One of the main risks of shadow apps is that they may not comply with an organization’s security protocols. Employees using unauthorized programs may store, share, or process sensitive data without adequate encryption or other safeguards. This lack of visibility and control can lead to data leakage, breaches or unauthorized access.
Compliance and regulatory risks
Many industries are governed by strict regulatory frameworks (e.g. GDPR, HIPAA). If employees use shadow applications that have not been reviewed or approved by the organization’s IT department or compliance team, the organization may be unknowingly violating these rules. This can lead to large fines, lawsuits and reputational damage.
Increased attack surface
Shadow apps expand an organization’s attack surface by providing more entry points for cybercriminals. These programs may not have hardened access controls, allowing hackers to exploit them and gain access to company networks.
Lack of visibility and control
IT departments must have visibility into the applications used across the organization to effectively manage and protect company data. When shadow apps are used, IT teams can be blind to potential threats, unable to detect unauthorized data transfers, or unaware of the risks associated with outdated or unsafe apps.
Learn how SSPM protects your SaaS stack and detects shady apps
How to detect shadow programs
SaaS Security Posture Management (SSPM) tools are important for SaaS security. Not only do they monitor configurations, users, devices, and other elements of the SaaS stack, but they are also important for detecting all non-human entities, including shadow applications.
SSPMs detect all SaaS applications that connect to another application (SaaS-to-SaaS), allowing security teams to detect integrated shadow applications. They also control logins via SSO. When users sign in to a new app using Google, SSPM records that sign-in. Existing device agents connected to your SSPM are a third way to see what new apps have been enabled.
In addition, SSPM has new methods for detecting shady programs. The innovative approach integrates SSPM with existing email security systems. When new SaaS applications are launched, they usually generate a stream of welcome emails, including confirmations, webinar invitations, and onboarding tips. Some SSPM solutions directly access all emails and collect broad permissions, which can be intrusive. However, more advanced SSPMs integrate with existing email security systems to selectively capture only the information needed, providing accurate detection of shadowy programs without overreaching.
Email security tools regularly scan email traffic for malicious links, phishing attempts, malicious attachments, and other email-borne threats. SSPMs can use permissions already granted to an email security system, allowing detection of shadowy programs without requiring another external security tool to grant sensitive permissions.
Another method of detecting shadowware involves integrating SSPM with a browser extension security tool. These tools track user behavior in real time and may flag user behavior.
Secure browsers and browser extensions record and send alerts when employees interact with unknown or suspicious SaaS applications. This data is transmitted to the SSPM platform, which compares it to the organization’s authorized SaaS list. When a shadow SaaS application is detected, SSPM triggers an alert. This allows the security team to properly enable and protect the shadow application or disable it.
As organizations continue to use SaaS applications to improve efficiency and collaboration, the rise of shadow applications is a growing concern. To mitigate these risks, security teams must take proactive steps to detect and manage malware using their SSPM with malware detection capabilities.
