Discover and secure shadow IT with 1Password Extended Access Management

Shadow IT has been a concern of IT and security teams since SaaS became mainstream. However, as SaaS has become increasingly decentralized and employees are more and more tech-savvy, the security issues associated with shadow IT have only become more prevalent. Recent research backs this up.

• 1 in 3 breaches involve shadow IT. (IBM Cost of a Data Breach Report)
• Through 2027, organizations that fail to centrally manage SaaS life cycles will remain five times more susceptible to a cyber incident or data loss due to incomplete visibility into SaaS usage and configuration.¹

• 77% of US technology decision-makers report moderate to extensive levels of technology sprawl. This sprawl can result in unsustainable costs, slower IT delivery, reduced operational resilience, and increased security risks. (Forrester, Q2 2024 Tech Pulse Survey, 2024)

Needless to say, employees are signing up for software and services outside of IT’s purview. And they’re creating accounts, uploading sensitive data, and inviting coworkers without the knowledge or oversight of the security team. While their intentions are often good – they just want to get their jobs done – the result is unmanaged, unsanctioned, and unmonitored accounts introducing risk.

In this blog, we’ll explore how 1Password Extended Access Management helps companies discover and secure SaaS applications and shadow IT.

How did we get here?

Organizations have long relied on traditional identity and access management (IAM) tools to manage access, but those tools govern only known or managed systems and users by design. They work well when organizations formally procure software, IT provisions identities, HR integrates workflows, and everything flows through a central directory. †

Shadow IT doesn’t play by those rules. By definition, shadow IT exists outside of the systems you control. IAM tools don’t have visibility into the tools your employees get on their own. They can’t discover unsanctioned tools in real time. That leaves IT and security teams stuck finding out about shadow IT only after a breach or compliance audit uncovers it. By that point, the damage has already occurred.

SaaS discovery tools can help to some extent, but most are reactive. They give you a point-in-time snapshot or generate static reports. They tell you what happened last week, not what’s happening right now. And without the ability to take action from those insights, they become just another piece of shelfware.

Addressing shadow IT with 1Password Extended Access Management

There are three key requirements to address shadow IT:

• Visibility: Organizations must be able to get a complete view of all applications, whether or not the organization provisions them.

• Control: IT and security teams must be able to pull these applications into compliance and ensure that access to all of them is secure.

• Employee empowerment and ease-of-use: This must be done in a way that empowers employees to get their work done as productively as possible, and without requiring tedious or manual effort by IT and security.

That’s where 1Password Extended Access Management comes in. 1Password Extended Access Management enables you to discover and manage shadow IT and AI, secure access to every SaaS application, and ensure each one meets compliance requirements. Here’s how it works:

1. Securing SaaS begins with discovery: Get a comprehensive picture of SaaS applications used across your organization, including shadow IT and shadow AI.

2. Bring SaaS apps into compliance: Identify managed and unmanaged SaaS apps that may place your organization at risk of violating compliance requirements. Ensure these applications meet your security standards. Maintain the right level of access to apps while supporting compliance standards such as SOC2 and ISO 27001 with a system of record for your app inventory and employee lifecycle workflows.

3. Block risky applications like unapproved generative AI: Identify and proactively block access to risky applications, such as unapproved GenAI, that may put your organization at risk. Prevent employees from accessing and exposing sensitive data to these specific applications.

4. Automate securing shadow IT: Build automated workflows to stay ahead of new SaaS discoveries and continue to revoke access to risky third-party applications. Leverage automated workflows that identify new apps and take immediate action. Create custom alerts and define automated actions based on specific criteria.

5. Identify app usage and reduce IT spend: Discover how your organization uses applications and shadow IT. Find unused licenses and unsanctioned spend to easily identify and eliminate overlapping or duplicate expenses.

Staying vigilant: Built for continuous protection

Shadow IT isn’t a one-time cleanup effort; it’s an ongoing risk. That’s why 1Password Extended Access Management continuously monitors access. You’ll receive alerts when it detects new account creations, identifies orphaned access, or finds persistent accounts after employees leave. You can also automate workflows to triage and manage exceptions at scale, keeping your team focused and effective.

And because the platform logs every action, you’ll have a complete audit trail for compliance and governance. Whether preparing for an audit or responding to a security incident, 1Password Extended Access Management gives you the visibility, context, and evidence you need.

Final thoughts: It’s time to act

Shadow IT isn’t going away. In fact, it’s only getting easier for employees to bypass official channels. The question isn’t whether shadow IT exists in your organization–it’s how much and how dangerous it is. With 1Password Extended Access Management, you don’t have to operate in the dark. You can discover the unknown, assess the risk, and take action.

Ready to eliminate shadow IT? Learn more about 1Password Extended Access Management and contact us today.

Dominic Garcia

Solutions Marketing, Director