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Data Security

Shadow Data: Uncovering and Erasing Hidden Security Risks

Businesses can erase shadow data securely with D-Secure Drive Eraser to reduce data breach risks and achieve regulatory compliance.

From creating annual review presentations to analyzing customer behavior and innovating new products — data is processed for every organizational activity of varying significance. Data gets stored and processed at multiple points that may not fall within the organization's security perimeter, leading to unprotected information known as 'Shadow Data.'

Understanding Shadow Data

Shadow data is created unintentionally in various forms. It includes information shared on chat servers through collaboration platforms, stored on external storage devices, insecure cloud servers, or file-sharing services. Business information on personal systems of remote employees or discarded assets during refresh cycles all contributes to shadow data.

Departmental Data Silos

Some departments maintain their own data sets stored in isolated locations, preventing inter-departmental collaboration and creating multiple copies of same information.

Underutilized Data

Any data not being utilized to its full potential belongs to this category, including deleted data, inaccessible data, and hidden data stored in protected areas.

Important Note

Shadow data is not produced with malicious intent but due to lack of awareness about how unused, hidden, and dormant data can become a security risk. This data remains vulnerable until it is wiped or erased permanently.

How Shadow Data Increases Security Risks

Shadow data significantly increases security risks because it remains unmonitored and outside the purview of IT security systems. This sidelined data is detached from centralized data management systems, meaning no security controls protect it.

35%

of data breaches involve shadow data

25%

occur within organizational premises

291

average days to identify and contain

Source: IBM's 2024 Cost of a Data Breach Report

Breaches involving shadow data take 26.2% longer to identify and 20.2% longer to contain. These statistics underline the critical need for organizations to identify, manage, and secure data — eliminating shadow data creation to mitigate associated security risks.

How to Uncover Shadow Data

Automated Data Classification Tools

Businesses should discover data using automated classification tools that scan endpoints and identify sensitive data based on intelligent search algorithms. Employees can utilize these tools on cloud-based storage platforms to maintain visibility.

Regular Third-Party Audits

IT administrators should regularly audit third-party SaaS platforms to check for hidden data containing customer email addresses or other sensitive information that may have accumulated over time.

Employee Awareness Programs

Organizations should create awareness programs including regular communications about data security, data breaches, retention policies, and the importance of erasing unnecessary data from third-party platforms.

How to Securely Erase Shadow Data

Once discovered, erasing shadow data is necessary to prevent exploitation by attackers. Organizations can take these steps to minimize and securely erase discovered shadow data:

1

Implement Data Security Policies

Establish clear rules on how PII, PHI, and financial details are stored. Implement layered encryption-based security, data retention, and destruction policies. Restrict access to critical data with role-based controls to prevent unauthorized download and storage.

2

Enforce Data Retention Policies

Form and enforce data lifecycle management policies that clearly define retention timeframes to prevent shadow data accumulation. Redundant, obsolete, and trivial data must be removed regularly using professional erasure tools.

3

Use Professional Data Erasure Software

Wipe IT assets with professional data erasure tools tested and approved by international organizations. D-Secure Drive Eraser has proven erasure efficacy after NIST and ADISA testing, permanently removing shadow data from drives including hidden areas like HPAs and DCOs.

Regulatory Compliance Requirements

Data protection laws like EU-GDPR, CCPA, FDPA, and PIPEDA require businesses to process data fairly, lawfully, and only in amounts sufficient to serve the purpose. A breach of personal customer information violates these requirements.

Regulatory Penalties

Authorities can impose civil and administrative penalties on non-compliant entities for data breaches involving shadow data.

Customer Rights

Customers have the right to file lawsuits, request data destruction, and seek damages for privacy violations.

Frequently Asked Questions

What is shadow data?

Shadow data refers to unprotected information that exists outside an organization's security perimeter. This includes data shared on collaboration platforms, stored on personal devices, insecure cloud servers, or decommissioned assets. It also encompasses unused, hidden, or dormant data that may pose security risks.

How can shadow data be erased securely?

Shadow data can be erased securely using professional data erasure software like D-Secure Drive Eraser. The software must be NIST and ADISA tested to ensure complete removal of data, including information stored in hidden disk areas like HPAs and DCOs, making recovery impossible even with forensic tools.

Is it necessary to erase shadow data?

Yes, erasing shadow data is essential. According to IBM's 2024 report, 35% of data breaches involve shadow data. Unprotected shadow data can be exploited by attackers, leading to regulatory penalties, legal action, and reputational damage. Proactive erasure reduces breach risks and ensures compliance with data protection regulations.

Conclusion

Shadow data might appear undiscoverable or hidden. However, it can have immense impact on a company's data security just like any other data residing on the company network. For businesses that pay no attention to this, such data lurks around the corner and can strike at any time.

Organizations should take accountability for all data that is created, used, and stored — leaving no data undiscovered and erasing shadow data as soon as it is uncovered.

Frequently Asked Questions

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