SaaS (Software-as-a-Service) applications have become a driving force behind modern organizations' productivity and collaboration. However, when these accounts are left unmanaged—outside of IT oversight and governance—they can quickly become a security and compliance nightmare.
Unmanaged SaaS accounts may seem harmless at first, but they introduce significant risks that can have long-term consequences. Let’s dive into what happens when unmanaged SaaS accounts go unchecked and how you can mitigate these risks.
The Risks of Unmanaged SaaS Accounts
1. Data Breaches and Security Vulnerabilities When SaaS accounts are unmanaged, IT teams lose visibility into who has access to critical applications and the data they store. This lack of oversight opens the door to:
Unauthorized Access: Accounts may have weak or reused passwords, increasing the risk of account takeovers.
Shadow IT: Employees adopt SaaS tools without proper security controls, exposing sensitive data to unverified platforms.
Orphaned Accounts: Former employees’ accounts often remain active, creating an entry point for attackers.
Without active monitoring and governance, sensitive data can easily fall into the wrong hands.
2. Compliance Violations SaaS tools handling regulated data must meet specific compliance standards like SOC 2, GDPR, or HIPAA. Unmanaged SaaS accounts can:
Store sensitive data in platforms that fail to meet regulatory requirements.
Process data in regions that violate data residency laws (e.g., GDPR requirements for EU citizens).
Lack encryption, auditing, and access controls needed for compliance.
Compliance failures can result in costly fines, legal penalties, and reputational damage.
3. Uncontrolled Costs and Redundant Tools When SaaS accounts are unmanaged, redundant tools and unused licenses often pile up unnoticed. This can:
Inflate costs due to multiple tools performing the same function.
Waste budget on unused or underutilized subscriptions.
Prevent IT teams from negotiating better pricing due to fragmented visibility.
Unmanaged tools directly impact your bottom line by increasing operational expenses.
4. Data Loss and Mismanagement Unmanaged SaaS accounts can lead to significant data loss risks:
Unmonitored Sharing: Employees may share data externally without encryption or proper controls.
Account Closure: Data stored in unmanaged tools can be lost if employees leave or the account is deactivated.
No Backups: Many SaaS tools do not provide data backup guarantees unless configured properly.
Losing sensitive data can disrupt operations, erode customer trust, and expose your organization to legal challenges.
5. Operational Inefficiencies Shadow IT creates silos of unintegrated tools, which disrupt workflows and create inefficiencies:
Teams use overlapping tools, fragmenting communication and collaboration.
IT teams spend unnecessary time investigating unknown applications.
A lack of centralized management increases manual efforts for audits, access reviews, and security checks.
Without governance, operational chaos can undermine productivity and slow down your business.
How to Address Unmanaged SaaS Accounts
To regain control of your SaaS environment, follow these steps:
1. Discover and Inventory SaaS Tools Start by identifying all SaaS tools being used across your organization—both approved and unapproved. Use automated tools like Waldo Security to:
Discover shadow IT by analyzing network traffic and SSO activity.
Map out accounts to understand ownership, usage, and data stored in each tool.
2. Assess and Prioritize Risks Evaluate the security and compliance posture of discovered SaaS tools:
Verify encryption, access controls, and compliance certifications (SOC 2, GDPR, HIPAA).
Identify high-risk accounts handling sensitive or regulated data.
Flag orphaned and redundant accounts for immediate review.
3. Enforce Access and Security Controls Bring unmanaged accounts under centralized control by:
Integrating SaaS tools with Single Sign-On (SSO) and enforcing Multi-Factor Authentication (MFA).
Applying role-based access controls (RBAC) to manage user permissions.
Regularly auditing and deactivating unused or orphaned accounts.
4. Educate Employees on SaaS Policies Prevent future unmanaged accounts by educating employees on:
The risks of shadow IT and unmanaged SaaS usage.
How to request new SaaS tools through IT.
Best practices for secure file sharing, passwords, and access controls.
5. Automate SaaS Management with Waldo Security Manual efforts to manage SaaS tools are unsustainable. Waldo Security simplifies the process by automating:
SaaS discovery to uncover unmanaged tools and accounts.
Risk assessments to flag compliance gaps and security vulnerabilities.
Centralized access controls to enforce SSO, MFA, and user permissions.
Reporting and audits to ensure continuous visibility and compliance.
With automation, you can eliminate unmanaged SaaS accounts, reduce risks, and streamline IT operations.
Final Thoughts: Take Control of Your SaaS Environment
Unmanaged SaaS accounts are more than just an IT nuisance—they’re a security, compliance, and financial risk. By discovering shadow IT, assessing risks, and enforcing strong governance practices, you can protect your organization from data breaches, compliance violations, and unnecessary costs.
Tools like Waldo Security provide the visibility and automation needed to bring all SaaS accounts under control, ensuring your SaaS environment remains secure, compliant, and efficient.
Ready to eliminate unmanaged SaaS accounts? Let Waldo Security help you regain control and visibility over your SaaS ecosystem.
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