Shadow IT vs Shadow Data

In the world of cybersecurity, two often-overlooked threats expose your business to serious risks:  Shadow IT and Shadow Data. Even though they sound like up-and-coming Marvel villains, they do in fact bring their own unique list of challenges and impacts. Let’s break down these threats and talk about why it’s essential to know what you should look out for and how to stay ahead of the game.

What is Shadow IT?

Shadow IT refers to technology, software, or devices used within your dealership that aren’t officially approved or monitored by your IT department. This includes an employee using a personal cell phone, checking personal email on a work computer, or using an app that stores sensitive data. This is more common than you might think.

It’s hard to combat the use of personal devices for a few reasons. One, it’s more convenient for the user. They might choose to use readily available tools to complete tasks instead of waiting for IT approval. It also might fill a gap if they need a solution that IT hasn’t provided a tool for. As cloud-based tools and mobile apps grow in popularity, employees often adopt solutions that meet their needs without thinking about security.

The problem? Unauthorized apps create vulnerabilities that your IT team can’t monitor or control, thus opening doors for cybercriminals. While it might seem harmless in the moment, Shadow IT’s existence can create huge holes in your business’ security.

What is Shadow Data?

While Shadow IT covers all unauthorized technology, Shadow Data encompasses all the sensitive information being housed somewhere outside your dealership’s designated secure systems. This could appear in the form of employees’ personal storage accounts, legacy applications, or unapproved messaging platforms.

Like Shadow IT, Shadow Data can lead to data breaches and compliance violations. This is especially true when sensitive or personal information is brought into the mix. Because this is stored in places not being monitored by your IT team, it’s nearly impossible to properly track or secure.

How does Shadow IT lead to Shadow Data?

Shadow IT and Data are very closely connected. As a matter of fact, Shadow IT is often the primary catalyst leading to Shadow Data’s creation. As employees begin to use unauthorized tools and programs, they may unintentionally store sensitive data outside the defined list of authorized secured systems. This sensitive information has officially become Shadow Data.

As a real-life example, let’s say you have a salesperson trying to get a customer’s test drive paperwork filled out. To make things go quickly, they ask the customer to text over a picture of their driver’s license and other personal information. The salesperson then installs a file-sharing app on their personal cell phone. This app isn’t approved for business use but is being used to share sensitive customer information. When files are uploaded, they’re not being protected or managed by your IT team. Similarly, encryption protocols and the data retention standards required by your security policies are not enforced. Suddenly, the data is sitting in an unsecure location and completely out of your control.

What makes these so dangerous?

Shadow IT and Shadow Data may not appear to be quite as dangerous as phishing scams or ransomware attacks, but this is partially what leads to the risk being so significant. If left unmanaged, these hidden threats can hurt your dealership in a variety of ways.

Data Breaches

Unauthorized tools and unprotected data increase the likelihood of breaches. When sensitive information is stored outside your secure systems, it immediately becomes vulnerable to cyberattacks, data theft, and general exposure. Nothing positive can come from a situation where your customer data (including financial details and personal information) ends up in the hands of cybercriminals.

Reputational Damage

Creating relationships based on trust is a crucial aspect of dealership dynamics. If your customers discover that their personal and private information was exposed due to your dealership’s lack of prioritization of data security, you could lose their trust – and their business.

Legal Consequences

Mishandling data can lead to compliance violations, with potential fines and penalties. This is especially true if you fail to meet industry standards such as the FTC Safeguards Rule. Failing to properly secure your data could result in much more than a simple slap on the wrist – it could be a very costly lesson learned, paid for by your dealership.

How can risk be minimized?

Fortunately, you can be proactive. Understanding the basics about Shadow IT and Shadow Data can better prepare you to mitigate risk and eliminate these holes in your security. There’s a few steps you can take immediately in your store now:

Simplify Technology

As the number of safety applications increases, your ability to monitor the situation effectively decreases. Reducing the number of tools and applications used in your dealership will minimize room available for Shadow IT to sneak in. Ensure your team feels comfortable asking for tools that help their workload, so they don’t cut corners or assume you won’t value their opinion.

Monitor Your Network

Utilize tools that allow you to monitor both your network and cloud applications. Programs able to track unauthorized devices or applications and flag possible Shadow IT activities could be the difference in keeping your business safe. If you’d like to further protect against data exposure, we’d recommend implementing data encryption and secure storage solutions for your sensitive data.

Control Data Access

Limit and regularly review who has access to sensitive data. It may seem harsh, but there’s no need for everyone in the dealership to have unlimited and unmonitored access to everything. Only provide administrative access to systems to those who need it. Incorporate multifactor authentication to add an extra layer of protection.

Conduct Regular Audits

In the same way you’d inspect the dealership’s physical security systems, take time to perform consistent auditing on the digital side. Track the apps and devices currently connected to your network where sensitive data is stored.

Educate Your Team

Implement regular training to help employees recognize not only the risks of Shadow IT and Shadow Data, but how to prevent the creation of either. Providing a space to discuss cybersecurity best practices can go a long way when it comes to protecting your dealership.

You wouldn’t leave your dealership’s doors wide open at the end of the night. Make sure this is true for your digital doors as well. Stay ahead of the game, and keep your data locked up tight. The best way to protect your dealership is by staying proactive and well-informed.