The rise of SaaS (Software-as-a-Service) applications has brought unprecedented agility and convenience to organizations. From project management tools to cloud-based storage and communication platforms, SaaS adoption has skyrocketed across industries. But with this rapid adoption comes a silent and growing threat: SaaS sprawl.
In every organization, SaaS tools are often onboarded without proper vetting, oversight, or visibility. Employees seeking quick solutions can spin up accounts without IT’s knowledge, and suddenly, you’re faced with shadow IT: unknown or unauthorized SaaS apps that introduce security risks, compliance violations, and ballooning costs.
So, how do you detect unknown or unauthorized SaaS applications in your environment?
Why Detecting Unknown SaaS Apps Matters
Before we dive into the "how," it’s important to understand the risks:
Security Gaps: Unauthorized apps may not meet your organization’s security requirements, exposing sensitive data to vulnerabilities.
Compliance Violations: SaaS tools handling regulated data without approval can lead to compliance failures (e.g., GDPR, HIPAA, SOC 2).
Data Loss: Data stored in unauthorized apps may not be backed up or properly secured, risking loss in the event of breaches or account closures.
Operational Risks: Poorly integrated SaaS apps can disrupt workflows and lead to inefficiencies.
Unknown apps are more than just a nuisance—they’re a threat to your organization’s security posture and operational efficiency.
Key Steps to Detect Unknown or Unauthorized SaaS Apps
1. Conduct Network Traffic Analysis Your network is the first place to look for hidden SaaS usage. By monitoring network traffic for connections to SaaS platforms, you can uncover tools that employees are accessing without IT approval. Tools like firewalls, proxies, and Secure Web Gateways (SWGs) often provide logs that show where traffic is going.
What to look for:
Domains associated with common SaaS providers (e.g., Slack, Dropbox, Trello, etc.)
Unusual spikes in outbound traffic to unknown platforms
2. Leverage Identity and Access Management (IAM) Integrating Identity Providers (IdPs) like Okta, Azure AD, or Google Workspace can provide visibility into user authentication. By reviewing the apps users access through SSO (Single Sign-On) and those they log into separately, you can pinpoint SaaS platforms that may not be fully managed.
What to look for:
Apps accessed outside of your SSO ecosystem
Unfamiliar user login patterns
3. Employee Surveys and Communication Your employees may unknowingly be part of the problem—but they’re also part of the solution. Conducting surveys or holding workshops to identify shadow IT can uncover tools being used across teams.
Pro tip: Position the conversation around support and enablement, not punishment. Employees adopt shadow IT to improve productivity, so frame the exercise as an effort to improve security and optimize tool usage.
4. Use Automated SaaS Discovery Tools Manual methods can only go so far. Modern challenges require modern solutions. SaaS Discovery platforms like Waldo Security automate the process of identifying, categorizing, and analyzing all SaaS applications within your environment.
With Waldo Security, you can:
Discover hidden SaaS tools using integrations with your network and identity systems.
Identify risks associated with unauthorized apps, such as lack of compliance certifications or weak security practices.
Classify SaaS accounts as known, unknown, or tolerated, allowing IT and security teams to prioritize what matters.
Enforce policies to ensure that future app onboarding aligns with security and governance requirements.
Automating SaaS Discovery with Waldo Security
Waldo Security is purpose-built to help organizations tackle SaaS sprawl and shadow IT. Our platform leverages advanced discovery techniques to map out your entire SaaS landscape, flagging unauthorized apps and identifying the associated risks.
Key benefits of Waldo Security:
Comprehensive Visibility: Detect every SaaS app in use—whether approved, unknown, or tolerated.
Risk Prioritization: Assess apps based on compliance frameworks (SOC 2, ISO 27001, GDPR, etc.) and known vulnerabilities.
Streamlined Offboarding: Ensure unauthorized apps and accounts are flagged for offboarding, mitigating data exfiltration risks.
By automating SaaS discovery, you take back control of your organization’s SaaS usage, ensuring your environment is secure and compliant.
Final Thoughts: Turning Shadow IT into Managed IT
Shadow IT is inevitable in today’s SaaS-driven world, but it doesn’t have to be a blind spot. By combining network analysis, IAM integration, and automated tools like Waldo Security, you can identify unknown or unauthorized SaaS apps and bring them into your managed environment.
At Waldo Security, we believe visibility is the foundation of SaaS security. The more you know, the better you can manage and protect your organization’s SaaS ecosystem.
Ready to discover what’s lurking in your SaaS environment? Let Waldo Security help you shine a light on the unknown.
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