In today’s complex digital environment, not all data is created equal, especially from a security standpoint. While organizations focus on protecting their primary data assets, a silent and significant threat is growing in the shadows: **shadow data**. This is information that exists within a company but is not managed by official IT or security processes, often residing in unsanctioned locations like personal cloud drives, local devices, or neglected backups.
According to the **2024 IBM Cost of a Data Breach Report**, shadow data was involved in **35% of data breaches**. These incidents increased the average cost of a breach to **$5.27 million** and extended its lifecycle by **24.7%**. This risk is not exclusive to the cloud; 25% of breaches involving shadow data occurred on-premises.
Shadow Data vs. Shadow IT
It’s crucial to differentiate between these two concepts. **Shadow IT** is the use of unapproved software or hardware within an organization. **Shadow data**, on the other hand, is the unmanaged data itself that is often a direct result of using shadow IT. For example, an employee using a personal cloud service (Shadow IT) to store work files creates unmanaged data (Shadow Data) that the security team cannot see or protect.
Common Characteristics and Root Causes
Shadow data can be difficult to track and takes many forms, including:
- **Untracked backups** stored on local devices.
- Files saved to **personal cloud storage** like Dropbox or Google Drive.
- **Stale or redundant data** that has been forgotten.
- **Hidden data** within SaaS applications.
The root causes are often a combination of a lack of governance, complex storage environments, and human error. When employees feel that approved processes are too slow or cumbersome, they will often find workarounds, creating new risks.
Mitigating the Risk of Shadow Data
Combating this threat requires a multi-faceted approach. To secure your data, you should:
- Implement **Data Discovery Tools** to find unmanaged data.
- Define and enforce **clear data governance policies**.
- Promote **employee awareness and training** to discourage unapproved practices.
For a comprehensive solution, modern security tools are essential. **Enterprise Digital Rights Management (EDRM)** solutions, in particular, provide a powerful defense by offering:
- **Automated Protection:** Automatically encrypting and protecting data the moment it is created, regardless of where it is stored.
- **Granular Access Controls:** Allowing only authorized users to view, edit, or share protected information.
- **Real-time Monitoring:** Tracking all data activities to provide an audit trail and alert security teams to suspicious behavior.
In a world where data is a primary target, an organization’s security is only as strong as its weakest link. Shadow data represents a significant hidden risk that traditional security tools often miss. By adopting solutions like **SealPath’s EDRM**, organizations can proactively protect their sensitive information, turning hidden liabilities into managed assets and ensuring data security across all platforms.
About Version 2 Limited
Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.
Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.
About SealPath
SealPath is the European leader in Data-Centric Security and Enterprise Digital Rights Management, working with significant companies in more than 25 countries. SealPath has been helping organizations from different business verticals such as Manufacturing, Oil and Gas, Retail, Finance, Health, and Public Administration, to protect their data for over a decade. SealPath’s client portfolio includes organizations within the Fortune 500 and Eurostoxx 50 indices. SealPath facilitates the prevention of costly mistakes, reducing the risk of data leakage, ensuring the security of confidential information, and protecting data assets.