Are Hidden Tools in Your SaaS Stack Putting Your Company at Risk?
Hi there,
Let’s talk about something that’s been silently growing in organizations everywhere: It isn’t the number of coffee runs, it's Shadow IT.
What started as employees looking for tools to make their work easier has now become a significant security risk. Employees are signing up for SaaS apps, connecting third-party tools, and using AI-powered solutions—all without IT’s knowledge.
In the past, IT teams had a clear view of all the tools in use, from the hardware on desks to the software on servers. But now? It’s a completely different game. Shadow IT is growing at an alarming rate, thanks to the sheer accessibility of cloud-based tools and the rise of AI.
Here’s the reality: while these tools can boost productivity, they also introduce unmonitored risks, from data leaks to compliance failures. And the scary part? Most organizations don’t even know how widespread their Shadow IT problem is.
In this edition, we’re shedding light on this hidden world through five real-life scenarios that show just how dangerous Shadow IT can be—and what you can do about it.
The AI That Shared Too Much
Meet Sarah, a busy content manager under tight deadlines.
Sarah found an AI tool that could rewrite text, create content ideas, and even generate social media posts. It was a lifesaver for her. But what Sarah didn’t realize was that the tool had access to her company’s cloud storage, including marketing plans and unreleased product details.
When the AI company faced a breach, Sarah’s data was exposed. The marketing team only discovered this when customers started asking about leaked campaign details that hadn’t been announced yet.
Key Takeaway: Shadow AI tools might make work easier, but they can expose sensitive company data when not vetted by IT.
The Free App That Wasn’t Free
Jake, an enthusiastic product designer, wanted a better way to collaborate with his team.
He signed up for a free collaboration tool, unaware that it came with a 30-day trial. After the trial expired, his card was automatically charged, and he didn’t bother canceling. Over time, the app integrated with other tools, creating a web of access permissions.
When Jake left the company, no one removed the app or deactivated the subscription. IT only noticed the charges a year later when reviewing the budget—by then, the tool had racked up thousands of dollars and left sensitive design data exposed.
Key Takeaway: Shadow SaaS tools often start small but can grow into major financial and security liabilities.
The IT Department’s Blind Spot
Imagine this: a department head installs a time-tracking tool to measure team productivity.
The tool asked for admin permissions to access the calendar app, CRM, and email to function. IT wasn’t informed, so the tool’s permissions went unchecked. Months later, the vendor discontinued the app, leaving its permissions active but unmanaged.
Hackers exploited these dormant permissions, gaining access to sensitive emails and calendar invites with strategic plans for upcoming deals.
Key Takeaway: Third-party apps often request far more access than they need, creating vulnerabilities if permissions aren’t regularly reviewed.
The Designer Who Leaked It All
Mia, a graphic designer, preferred using an unapproved design tool over the company’s licensed platform.
She shared drafts of confidential branding concepts on the tool, which synced with its cloud storage. When the tool had a misconfigured database, it inadvertently leaked public access to files. Competitors downloaded drafts of Mia’s designs, giving them a sneak peek at the company’s new branding strategy.
Key Takeaway: Unapproved tools often lack enterprise-grade security, putting sensitive data at risk of accidental exposure.
The “Trusted” Third-Party App
Your sales team connects a third-party app to the CRM to automate client follow-ups.
What seemed like a harmless productivity boost turned into a disaster when the app experienced a data breach. Since the app had full access to the CRM, hackers downloaded the entire client database, including personal contact information, deal histories, and financial records.
Key Takeaway: Apps with OAuth permissions can be a ticking time bomb if they aren’t monitored for security vulnerabilities.
Why Shadow IT Is More Dangerous Than You Think
Shadow IT isn’t just a productivity concern—it’s a growing security risk. Here’s why:
3 Steps to Take Control of Shadow IT
The FrontierZero Advantage: Turning the Lights On
At FrontierZero, we help organizations tackle Shadow IT head-on by providing:
With FrontierZero, you’re not just identifying Shadow IT—you’re gaining control over your SaaS ecosystem.
?? Ready to take the first step? Schedule a demo with FrontierZero today.
Conclusion
Shadow IT isn’t just a problem waiting to happen—it’s happening now. With the rise of Shadow SaaS, AI, and third-party apps, organizations must act quickly to regain control of their tools and data.
Don’t let shadow apps derail your security strategy. Start uncovering and managing Shadow IT today.
Best, Karl & Mo
Very helpful