SaaS (Software-as-a-Service) applications are indispensable. However, the growing reliance on SaaS tools has introduced a major challenge for IT and security teams: unauthorized accounts. Employees often adopt SaaS applications without IT approval, creating security, compliance, and operational risks.
Identifying unauthorized SaaS accounts is the first step in mitigating these risks and regaining control over your SaaS environment. Here’s how you can systematically uncover and address these accounts.
Why Identifying Unauthorized SaaS Accounts Matters
1. Security Risks Unauthorized SaaS accounts often lack IT oversight, meaning they may not adhere to your organization’s security protocols. This can result in:
Data Exfiltration: Sensitive data may be exposed to unvetted platforms.
Account Takeovers: Weak or reused passwords on unauthorized accounts increase the likelihood of breaches.
Lack of Monitoring: Without logging or oversight, malicious activity may go undetected.
2. Compliance Violations Many SaaS tools process sensitive or regulated data, such as customer information or financial records. Unauthorized tools can:
Operate outside compliance frameworks like SOC 2, GDPR, or HIPAA.
Store data in regions that violate data residency requirements.
Bypass encryption or fail to maintain required access controls.
3. Financial Waste Shadow IT—the use of unapproved tools—often leads to redundant applications and unnecessary costs:
Overlapping SaaS tools increase budget waste.
Unused or orphaned accounts inflate subscription fees.
IT teams lose leverage in negotiating volume discounts.
4. Operational Inefficiencies Unauthorized SaaS accounts can disrupt workflows by:
Fragmenting collaboration across multiple, unintegrated platforms.
Increasing the workload for IT and security teams trying to investigate and remediate unknown tools.
Steps to Identify Unauthorized SaaS Accounts
1. Conduct Network Traffic Analysis Monitor network traffic to uncover unauthorized SaaS usage. Firewalls, proxies, and Secure Web Gateways (SWGs) often provide visibility into external connections.
What to Look For:
Unrecognized domains associated with SaaS platforms.
Unusual traffic patterns or spikes to specific services.
2. Leverage SSO and IAM Logs If your organization uses Single Sign-On (SSO) or Identity and Access Management (IAM) solutions, these systems can help identify unauthorized accounts.
Key Actions:
Audit logs for applications accessed outside approved lists.
Cross-reference accounts with a list of sanctioned tools.
3. Utilize SaaS Discovery Tools Modern SaaS discovery platforms, like Waldo Security, automate the identification of unauthorized accounts. These tools integrate with your network and identity systems to:
Detect shadow IT applications.
Map user activity to specific tools.
Identify data stored or shared in unapproved platforms.
4. Audit Expense Reports and Procurement Records Reviewing financial records can reveal unauthorized subscriptions or SaaS tools that employees have expensed or purchased directly. This step is especially helpful for identifying departmental shadow IT.
5. Engage Employees Through Surveys Employees are often unaware of the risks associated with shadow IT. By conducting surveys or interviews, you can:
Identify tools employees have adopted independently.
Understand why unauthorized tools are being used.
Educate teams on the risks and provide approved alternatives.
How to Address Unauthorized SaaS Accounts
Once you’ve identified unauthorized SaaS accounts, the next step is to address them effectively:
1. Assess Risks Evaluate each unauthorized SaaS tool for security and compliance risks:
Does it meet your organization’s security standards (e.g., encryption, MFA)?
Does it comply with applicable regulations (e.g., SOC 2, GDPR)?
What type of data is stored, processed, or shared in the tool?
2. Centralize Management Bring unauthorized accounts under IT control by:
Integrating them with SSO and enforcing MFA.
Implementing role-based access controls (RBAC).
Auditing and deactivating unused or orphaned accounts.
3. Establish Governance Policies Prevent future unauthorized accounts by creating clear policies and processes:
Require IT approval for new SaaS tools.
Maintain a catalog of pre-approved applications.
Educate employees on secure SaaS adoption practices.
4. Automate SaaS Monitoring with Waldo Security Manual monitoring of SaaS accounts is inefficient. Tools like Waldo Security automate the process by:
Continuously discovering unauthorized SaaS accounts.
Monitoring usage and flagging risky behaviors.
Enforcing compliance and security controls automatically.
Final Thoughts: Proactive Identification Is Key
Unauthorized SaaS accounts pose significant risks, from security vulnerabilities to compliance violations and financial waste. By proactively identifying these accounts through network monitoring, SSO logs, and automated discovery tools, you can mitigate risks and bring your SaaS environment under control.
With solutions like Waldo Security, you gain the visibility and automation needed to eliminate shadow IT, enforce policies, and protect sensitive data. Proactive identification and governance ensure that SaaS tools empower your teams without compromising your organization’s security or compliance.
Ready to uncover unauthorized SaaS accounts? Let Waldo Security help you shine a light on shadow IT and regain control of your SaaS environment.
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