Select Page

Just before last Christmas, in a first-of-a-kind case, JPMorgan was fined $200M for employees using non-sanctioned applications for communicating about financial strategy. No mention of insider trading, naked shorting, or any malevolence. Just employees circumventing regulation using, well, Shadow IT. Not because they tried to obfuscate or hide anything, simply because it was a convenient tool that they preferred over any other sanctioned products (which JPMorgan certainly has quite a few of.)

Visibility into unknown and unsanctioned applications has been required by regulators and also recommended by the Centre for Internet Security community for a long time. Yet it seems like new and better approaches are still in demand. Gartner has identified External Attack Surface Management, Digital Supply Chain Risk, and Identity Threat Detection as the top three trends to focus on in 2022, all of which are closely intertwined with Shadow IT.

“Shadow IDs,” or in other words, unmanaged employee identities and accounts in third-party services are often created using a simple email-and-password-based registration. CASBs and corporate SSO solutions are limited to a few sanctioned applications and are not widely adopted on most websites and services either. This means, that a large part of an organization’s external surface –as well as its user identities– may be completely invisible.

images from Hacker News