65% of organizations name data loss as primary risk of unauthorized tools

The security of unauthorized Software as a Service (SaaS) applications were analyzed in a recent report by Next DLP. The report revealed that 73% of security professionals admitted to using unauthorized SaaS applications in the past year, despite being aware of the associated risks. Data loss (65%), lack of visibility and control (62%), and data breaches (52%) were cited as the top risks. Additionally, 1 in 10 professionals acknowledged that their organization experienced data breaches or losses due to unauthorized tools.

Half of the respondents noted that artificial intelligence (AI) was restricted to specific roles in their organization, with 16% completely banning the technology. Furthermore, 46% of organizations have implemented policies to regulate employee use of GenAI.

Key findings from the report include:

• 40% of security professionals believe employees do not fully grasp the risks of Shadow SaaS and AI.
• 37% have established policies and consequences for using unauthorized tools, with only 28% recommending approved alternatives.
• Half reported receiving updated guidance on Shadow SaaS and AI in the last six months, while 1 in 5 never received such updates.
• Additionally, nearly 20% of security professionals were unaware of their organization’s policies or training on these risks, indicating a need for more awareness and education.

Read the full report.