5 Risks of Unmanaged Devices and How to Mitigate Them

What Are Unmanaged Devices? 

Unmanaged devices are network-connected devices that lack active monitoring, management, or control by IT or security teams. They are often personal devices or third-party devices that employees or contractors use, which fall outside of the organization’s standard management and security policies. These devices can pose significant security risks due to lack of visibility and control.

Types of unmanaged devices include:

• BYOD (Bring Your Own Device): These are personal devices like laptops, tablets, and smartphones that employees use for work purposes, as part of an organizational BYOD program.
• Third-party devices: These include contractor devices, vendor devices, or devices used by partners that are not subject to the organization’s standard management and security protocols. 
• Devices outside the scope of management: This can include certain types of devices (like Linux endpoints) or software that isn’t compatible with the organization’s management solutions. 
• IoT devices: These include cameras, sensors, or conference equipment, which may be deployed by facilities or other departments without IT oversight. These devices often lack basic security configurations and may not receive regular firmware updates.
• Shadow IT: This includes tools and devices used by employees without approval from the organization.

Unmanaged devices are a concern due to:

• Lack of security management: Unmanaged devices might lack the standard security patches, software updates, and monitoring that are typically applied to managed devices. 
• Potential for unauthorized access: Because they’re not actively managed, unmanaged devices can be more vulnerable to security threats, malware, and data breaches. They can be entry points for attackers to infiltrate the network.
• Lack of visibility: IT and security teams may not be aware of all devices accessing the network, making it harder to respond to security incidents. 
• Potential for data loss: Unmanaged devices may not have the same data protection measures as managed devices, increasing the risk of data breaches and loss.
• Compliance issues: Organizations may have regulatory requirements to protect data and manage devices, and unmanaged devices can make it difficult to meet these compliance standards. 

Security Risks of Unmanaged Devices

Unmanaged devices significantly expand an organization’s attack surface by introducing endpoints that are not subject to standard security controls. Since these devices are not enrolled in endpoint protection platforms, they sometimes lack antivirus software, disk encryption, and firewall enforcement. This makes them more susceptible to malware infections, data breaches, and exploitation by attackers, and is why companies must be sure to implement proper security policies for BYOD/unmanaged devices.

Lack of Security Management

Without centralized control, unmanaged devices often operate with outdated software and unpatched vulnerabilities. They may miss critical security updates, leaving them exposed to known exploits that threat actors can easily target.

Additionally, these devices may not enforce basic security configurations like screen locks, endpoint detection, or disk encryption. This lack of baseline security makes them easy targets for malware, ransomware, and other attack vectors that rely on weak defenses.

Potential for Unauthorized Access

Unmanaged devices can bypass traditional access controls, connecting to the network without undergoing device verification or posture checks. This allows them to interact with internal resources even if they fall short of the organization’s security standards.

Attackers can exploit these gaps by compromising an unmanaged device and using it as a launchpad for lateral movement within the network. The lack of access control policies makes it difficult to enforce segmentation or apply least privilege principles effectively.

Lack of Visibility

IT and security teams often have no real-time insight into unmanaged devices on the network. These devices operate outside of inventory and monitoring systems, creating blind spots that delay threat detection and incident response.

This invisibility also impairs threat hunting and forensic investigations, since logs from unmanaged endpoints are often incomplete or missing. As a result, malicious activity originating from these devices may go undetected for extended periods.

Potential for Data Loss

Unmanaged devices typically lack enterprise-grade data protection, such as encrypted storage, secure backups, or remote wipe capabilities. If lost or stolen, these devices can expose sensitive business data without any means of recovery or containment.

Users on unmanaged devices may store files locally, sync them with unauthorized cloud services, or transmit them over insecure channels. These behaviors increase the risk of inadvertent data leakage or intentional exfiltration by malicious actors.

Compliance Issues

Many regulatory frameworks require organizations to manage and secure all devices that access or store sensitive data. Unmanaged devices introduce audit gaps and raise the risk of noncompliance with standards like HIPAA, GDPR, or PCI-DSS.

Auditors may flag unmanaged endpoints as violations due to the lack of documented controls, monitoring, or incident response coverage. This can result in fines, legal exposure, or reputational damage if sensitive data is compromised and compliance cannot be demonstrated.

Techniques to Detect and Identify Unmanaged Devices

Here are the primary ways organizations can find unmanaged devices that might pose a risk to their IT environment.

Network-Based Detection

Network-based detection identifies unmanaged devices by monitoring all connections within the organization’s network. Technologies like network access control (NAC), intrusion detection systems (IDS), and network scanning can discover devices as they attempt to communicate or authenticate. By monitoring DHCP requests, ARP traffic, and traffic patterns, organizations gain visibility into all endpoints, including those outside of asset inventories. These solutions can fingerprint devices based on MAC addresses, operating system signatures, and network behaviors.

However, network-based detection has limits since some devices may use spoofed or randomized MAC addresses, or connect through guest networks designed with limited visibility. Additionally, as organizations shift to a mix of on-premises and cloud resources, traditional network monitoring can miss remote assets, VPN users, or cloud-connected endpoints. Integrating network-based detection with other discovery tools and maintaining continuous scanning are essential for coverage and timely identification of unmanaged devices.

Authentication and Identity-Based Techniques

Authentication and identity-based detection rely on monitoring login attempts and tracking which devices access enterprise applications and resources. Integration with identity providers and single sign-on (SSO) systems allows IT to identify the source device of each authentication event, flagging devices that are unknown, not enrolled, or accessing resources in unauthorized ways. These methods work well for cloud-based services and VPNs, ensuring visibility beyond the corporate LAN.

Still, authentication and identity-driven techniques can be circumvented if credentials are stolen or if policies for device registration are not enforced. They function best when paired with device posture checks, enforcement policies, and step-up authentication. Comprehensive logging of device identity with user credentials creates strong audit trails and helps isolate suspicious unmanaged connections, but it is not foolproof unless embedded in an endpoint management framework.

Endpoint and Agentless Discovery

Endpoint discovery with agents involves deploying software on managed devices to report hardware, software, and network details back to central management. However, since unmanaged devices lack agents, agentless methods have grown in importance. Agentless discovery scans the network for new hosts, queries open ports, gathers basic device information, and builds an inventory without needing installed software on every endpoint.

The effectiveness of agentless discovery depends on regular, automated scanning and integration with asset management systems. Unauthenticated or stealthy devices can still avoid discovery if configured to mask network presence, making layered approaches necessary. Combining endpoint and agentless methods ensures that both known managed devices and rogue, unmanaged endpoints are identified, supporting swift policy enforcement and risk mitigation.

Cloud and SaaS Discovery

Cloud and SaaS discovery techniques focus on uncovering unmanaged devices that access cloud-hosted services and corporate data outside the traditional perimeter. Cloud access security brokers (CASBs), SaaS management platforms, and API-driven audit logs provide insight into which devices and users are connecting to sensitive cloud resources. 

These tools can profile endpoints based on device type, OS, compliance posture, and geographic location, granting or blocking access accordingly. While cloud and SaaS visibility improves oversight beyond the on-premises environment, gaps may remain if devices route traffic through anonymizing services, or if shadow IT software is used.

Best Practices for Addressing Concerns with Unmanaged Devices 

There are several ways that organizations can improve their security in the face of unmanaged devices.

1. Use Secure Enclave Technology 

A secure enclave creates an isolated execution environment on personal devices, separating work applications and data from personal use. This separation protects business information while ensuring the organization cannot monitor or interfere with an employee’s private files and activities. Because the enclave runs applications and data locally on the device, it avoids the performance issues and complexity of older approaches like virtual desktop interface (VDI).

Within the enclave, all data is encrypted at rest and in transit. Organizations can enforce access controls, apply data loss prevention measures, and route work traffic through secure company gateways. These controls limit risks such as data leakage, privilege escalation attacks, or malware on the unmanaged parts of the device. At the same time, employees maintain full privacy for personal activity outside the enclave.

Secure enclaves also simplify the management of BYOD environments. Onboarding and offboarding are handled through a lightweight process where the enclave can be provisioned quickly and later wiped remotely without touching personal files. This reduces administrative overhead and helps maintain compliance with standards such as HIPAA, GDPR, and SOC 2.

2. Require Device Enrollment or Registration

Enforcing device enrollment or registration ensures that only authorized endpoints can access critical business systems. Enrollment processes typically include deploying device management agents, provisioning security policies, and establishing real-time compliance checks. 

Registered devices can be tracked, updated, and managed centrally, enabling IT to rapidly respond to new vulnerabilities or suspicious activities. This process also allows for the automatic revocation of access if policy violations are detected.

Device registration should be mandatory for all endpoint classes, including BYOD and contractor equipment, especially in environments handling regulated or sensitive information. Organizations must balance the user experience with security by offering frictionless self-enrollment and clear guidance for new devices. 

3. Implement NAC (Network Access Control)

Network access control (NAC) enforces policy-based access to network resources, authenticating and assessing devices before granting connectivity. NAC systems can automatically detect unmanaged devices, quarantine or restrict their access, and prompt users to remediate security gaps before joining internal networks. 

Through integration with identity directories, vulnerability scanners, and endpoint compliance checks, NAC strengthens perimeter defense against rogue devices. However, NAC deployment requires careful planning, thorough mapping of business requirements, and extensive testing to prevent productivity disruptions. 

Continuous policy updates and robust exception handling ensure new device types and business scenarios are covered. NAC is most effective when paired with strong authentication, regular training, and automated response workflows, creating a dynamic, adaptive shield against the risks posed by unmanaged endpoints.

4. Use Separate VLANs for Unmanaged Devices

Segmenting unmanaged devices into dedicated VLANs limits their lateral movement and access to sensitive internal resources. By isolating guest, contractor, or BYOD endpoints on separate network segments, organizations contain potential threats and prevent direct exposure of core infrastructure. 

VLANs can enforce restricted outbound connectivity, apply enhanced monitoring, and deploy security controls tailored to lower-trust environments, mitigating damage if a device is compromised.

This approach also allows IT teams to apply more lenient access and security policies for unmanaged devices without compromising network integrity. Network segmentation must be regularly reviewed to ensure unmanaged devices are not inadvertently granted elevated access. 

5. Provide User Education on Device Security

User education is an essential defense against the risks introduced by unmanaged devices. Training programs should emphasize the dangers of connecting unauthorized devices to corporate networks, outline secure configuration steps, and explain acceptable use policies. 

Employees and contractors must understand how their actions, like installing unapproved applications or neglecting updates, can expose the organization to breaches or data loss. Effective education initiatives combine periodic training sessions, policy reminders, and just-in-time guidance (such as alerts or onboarding prompts) to reinforce secure behavior. 

Regular testing, such as simulated phishing or social engineering campaigns, can increase awareness and expose gaps in understanding. By fostering a culture of shared security responsibility, organizations empower users to recognize threats, comply with device management policies, and support IT efforts to reduce unmanaged device risk.

Related content: Read our guide to BYOD security

Securing Unmanaged Devices with Venn

Venn’s Blue Border was purpose-built to protect company data and applications on unmanaged and BYOD computers used by contractors and remote employees. 

Similar to an MDM solution but for laptops, work lives in a company-controlled Secure Enclave installed on the user’s PC or Mac, where all data is encrypted and access is managed. Work applications run locally within the Enclave – visually indicated by Venn’s Blue Border™ – protecting and isolating business activity while ensuring end-user privacy. 

With Venn, you can eliminate the burden of purchasing and securing laptops and managing virtual desktops (VDI.) Unlike virtual desktops, Venn keeps users working locally on natively installed applications without latency – all while extending corporate firewall protection to business activity only.

Learn more about how you can enable a secure remote workforce with Venn.