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Shadow SaaS: What Every CISO Needs To Know

Summary: In today’s fast-paced digital world, keeping your private infrastructure secure and accessible is crucial. Old-school methods like legacy VPNs and traditional Zero Trust Network Access (ZTNA) come with their own set of problems and vulnerabilities. In this blog, we’ll dive into the design principles and considerations for modern private infrastructure access to keep up with ever-evolving threats.

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What is Shadow SaaS

The “Shadow SaaS” problem refers to the unauthorized use of Software-as-a-Service (SaaS) applications within an organization without the knowledge or approval of the IT department or management. This typically occurs when employees use external cloud-based services to fulfill their work-related tasks without following proper protocols or security measures. Shadow SaaS can lead to security vulnerabilities, data breaches, compliance issues, and loss of control over sensitive company information.

Why Shadow SaaS Problem is Growing

The Shadow SaaS problem is increasing in enterprises due to several factors:

A combination of these factors contributes to the increasing prevalence of shadow SaaS within enterprises, posing challenges for CISOs and IT departments striving to maintain control and security over the organization’s digital assets.

Why are Gen AI SaaS Apps So Risky?

Among the different categories of SaaS applications, we think that shadow SaaS related to Gen AI is riskier. Here is why:

What Shadow SaaS is Such a Big Problem?

Shadow SaaS can lead to data leaks, compliance issues and even copyright infringement or IP issues. Recently the SEC has also mandated the enterprises to have visibility around their SaaS app usage and integrations and to disclose that. See the hackernews article for more details.

Let’s look at the risk of Shadow SaaS in these areas.

Shadow SaaS == Data Leaks

The reasons above have caused increased use of shadow SaaS in enterprises. SaaS apps by design hold data with them and allow access to that data using APIs and web or mobile apps. So shadow SaaS also means invisible data activity. Here are some ways data leaks can happen:


This lack of visibility, inadequate security controls, data silos, sharing risks, and account compromises associated with shadow SaaS usage can collectively increase the likelihood of critical data leaks within an organization.

Shadow SaaS == Compliance Risks

Shadow SaaS usage within organizations can also lead to various compliance violations, including:

Overall, the use of shadow SaaS applications can introduce significant compliance risks for organizations, potentially leading to legal and regulatory consequences, financial penalties, and reputational harm. It is essential for organizations to implement robust governance and control measures to mitigate these risks effectively.

Shadow SaaS for Gen AI Apps == Copyright and IP Issues

The hidden use of the generative artificial intelligence ( Gen AI) applications can potentially lead to copyright and intellectual property (IP) issues in several ways:

To mitigate these risks, enterprises and employees using generative AI applications should exercise caution when creating and sharing content, ensure compliance with copyright law and intellectual property rights, seek appropriate permissions when using copyrighted material, and consider consulting legal counsel for guidance on complex copyright issues. Additionally, developers of generative AI tools should implement safeguards to prevent or mitigate copyright infringement, such as incorporating content filters, providing clear guidelines for users, and fostering awareness of copyright laws and best practices.

There are several ways to mitigate these threats from SaaS Apps. We will write about those and how Kitecyber helps with this problem in a separate article.

If you would like to know more about how we help with these problems with an easy to install and manage solution, please reach out to info@kitecyber.com
With over a decade of experience steering cybersecurity initiatives, my core competencies lie in network architecture and security, essential in today's digital landscape. At Kitecyber, our mission resonates with my quest to tackle first-order cybersecurity challenges. My commitment to innovation and excellence, coupled with a strategic mindset, empowers our team to safeguard our industry's future against emerging threats. Since co-founding Kitecyber, my focus has been on assembling a team of adept security researchers to address critical vulnerabilities and enhance our network and user security measures. Utilizing my expertise in the Internet Protocol Suite (TCP/IP) and Cybersecurity, we've championed the development of robust solutions to strengthen cyber defenses and operations.
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