Asset Discovery Uncovers Shadow IT: A Must-Have for MSPs

In this article, you will learn how shadow IT can become an invisible but significant security risk for companies. Find out how Asset Discovery helps IT service providers to uncover hidden devices and applications on the network. We also present proven measures for controlling shadow IT and improving network security.

Definition of Shadow IT and its Risks

Shadow IT refers to the use of devices, software and applications that are integrated into the corporate network without the knowledge of the IT department. Common reasons for this include employees' needs for efficiency and flexibility.

Shadow IT is a particular challenge for managed service providers (MSPs), IT service providers and system houses, as unauthorized devices and applications often have security vulnerabilities. These can pose a significant risk due to missing regular security updates or unmet compliance standards.

Some of the main risks of shadow IT are:

  • Data Loss and Data Breaches: Unapproved applications often store sensitive data outside of the controlled IT environment, increasing the risk of data leaks or loss.

  • Compliance Violations: Shadow IT makes it more difficult for companies to comply with regulatory requirements and internal IT guidelines. Particularly in heavily regulated industries such as finance or healthcare, such violations can result in heavy fines.

  • Gateways for Cyber Attacks: Unauthorized applications and devices are easy targets for hackers because they often do not meet the same security standards as approved tools. Shadow IT is often used as a weak point to penetrate networks and access sensitive data.

Internal Security Audits and Asset Discovery Provide Transparency

Internal Security Checks for Controlling Software on Devices

By installing an agent on endpoints such as laptops and servers as part of the internal security check, MSSPs and IT service providers can get a comprehensive overview of installed programs. This technology helps to identify unauthorized applications and ensure compliance.

View of the installed programs of an end device in Check Insights

New: Asset Discovery for Identifying Devices in the Network

With our new Asset Discovery feature, network devices that were previously undiscovered can now also be recorded. This feature gives you a more comprehensive picture of your customers' network infrastructure and allows you to identify all devices on the network - from PCs and laptops to printers, smartphones or IoT devices. A typical scenario is the detection of private devices in the internal network that do not meet security requirements.

Specifically, the following information on the assets found is displayed:

  • Device type

  • Name of the device

  • IP address

  • Open ports

  • MAC address

  • Host name

  • Indicator whether the lywand Agent is installed

By using Asset Discovery, it is possible to determine which devices are actually present in the network and whether they comply with security standards. It is possible to determine which devices need to be removed from the network and which devices need to be examined in detail for vulnerabilities - which may not be done for all devices from a compliance perspective, e.g. private telephones.

Overview of the targets found using Asset Discovery

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Measures to Control and Minimize Shadow IT

As the complete elimination of shadow IT is difficult in practice, MSSPs and IT service providers can take preventive measures to reduce the risks:

1. Network Segmentation

IT service providers should ensure that the company network is divided into logical segments. A separate WLAN for mobile devices and private devices can ensure that sensitive company data is only accessible via dedicated and well-secured connections. This reduces the risk of unauthorized devices compromising the internal network.

2. Optimization of Network Access Processes (Network Access Control, NAC)

A NAC system prevents unauthorized devices from gaining access to the network. NAC can regulate access based on user rights and security compliance and ensure that only devices with the required security standards can access the network.

3. Network Monitoring and Vulnerability Analysis

  • Agent: Distribute the agent to all end devices to get an overview of the installed software and uncover security gaps.

  • Asset Discovery: You can also monitor the company network using the installed agents to detect “blind spots”.

  • Network Check: Perform additional continuous network checks to regularly check the network for vulnerabilities. In this context, we are pleased to announce that the Internal Network Check is expected to be available at the beginning of next year. (We will keep you up to date in our newsletter).

Conclusion: Control Shadow IT and Strengthen Network Security

Shadow IT is a growing risk for companies that can have significant consequences. It is critical for MSSPs, IT service providers and system houses to ensure network security and compliance through transparent monitoring and clear policies. Using Asset Discovery as a complementary tool to identify unknown devices and applications enables IT departments to control the network infrastructure and minimize risks from unauthorized access and cyberattacks.

Take Advantage of the Free Trial Option

Asset Discovery is available free of charge for all lywand partners in October and November. Take the chance to test the feature to its full extent! If you are not yet a partner, you should take the opportunity now to learn more about the lywand Security Audit Platform. Arrange a free demo or get your free trial account.

Book a demo Get a trial account

Frequently Asked Questions (FAQ)

Shadow IT refers to the use of unauthorized applications and devices in a company network. As these devices are often used without the knowledge of the IT department, they pose an increased risk as they often do not meet security standards and can regularly lead to data loss, cyberattacks and compliance breaches.

Asset Discovery identifies all devices and applications connected to the corporate network, including those that may not have been authorized. This gives the IT department a complete overview and allows them to enforce security policies by removing unauthorized devices or making them security compliant.

IT service providers can control shadow IT through preventative measures: These include segmenting the network to separate company data and private devices, introducing a Network Access Control (NAC) system to control access rights and security standards, and regularly monitoring the network and analyzing vulnerabilities. Internal checks by the agent and Asset Discovery can be used to detect unauthorized devices and close security gaps.

The Internal Network Check from lywand is expected to be available at the beginning of next year and will expand the existing security solution by allowing all devices in the network to be checked for vulnerabilities.

Julian Lindenhofer

November 6, 2024

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