Unmanaged devices are the security threat most companies ignore

Security is all about solving problems before they explode. The industry has tackled massive shifts before, moving the internet from HTTP to HTTPS, disrupting traditional authentication with multifactor sign-ons, and redefining network security through zero trust. So why are so many companies ignoring unmanaged devices?

Right now, a huge number of employees, contractors, and third parties access corporate networks using laptops, tablets, and smartphones without any real oversight. These devices exist outside of mobile device management (MDM) solutions—meaning IT and security teams have no way of monitoring them, enforcing updates, or ensuring basic protections. That’s a security nightmare. Unpatched operating systems, outdated software, and exposed credentials create an easy entry point for attackers. Worst of all, companies often don’t even know these risks exist.

It’s not that businesses have deliberately ignored the problem. Until recently, unmanaged devices weren’t a dealbreaker for security audits. You could check the compliance boxes and pass assessments without addressing them. But threat actors don’t care about compliance—only vulnerabilities. A data breach caused by an unmanaged device won’t get excused just because a company technically met audit requirements.

The scale of the issue is hard to dismiss. According to a 2022 study by Kolide, 47% of companies knowingly allow unmanaged devices to access company resources. That means nearly half of organizations are leaving sensitive data exposed, which is a formula for disaster. The longer this problem gets ignored, the bigger the consequences become.

“Every organization needs to rethink how it handles security for unmanaged devices, before an attacker does it for them.”

Unmanaged devices are a primary target in ransomware attacks

The numbers speak for themselves—92% of ransomware attacks in 2024 involved unmanaged devices, according to Microsoft. That’s not a coincidence. These devices lack visibility, security controls, and often even basic protections like system updates or encryption. Attackers know this and exploit these gaps to gain access, escalate privileges, and deploy ransomware deep within an organization’s infrastructure.

Companies rely on a network of contractors, vendors, and third parties, many of whom connect to corporate systems using their own hardware. If just one of those unmanaged devices runs outdated software, lacks proper authentication, or stores unencrypted credentials, it becomes the perfect attack surface.

This is an active avenue for cybercriminals. Ransomware operators don’t need sophisticated exploits when they can simply find an unpatched machine, execute malicious code, and move laterally through a company’s network. Once they establish a foothold, recovering from an attack becomes exponentially more difficult, costly, and damaging to reputation.

For executives, the key takeaway is clear: ignoring unmanaged devices means leaving the door open to ransomware attacks. Companies spend millions on endpoint detection, encryption, and access controls, yet nearly half allow personal devices without oversight. That’s a fundamental security contradiction that needs to be addressed now—not after an incident occurs.

Traditional tools can’t secure unmanaged devices

Most security teams rely on Mobile Device Management (MDM) tools to maintain control over corporate devices. The problem is, these tools were never designed for unmanaged endpoints. They assume companies own the hardware, which is not the case for personal devices, contractor laptops, or machines running non-standard operating systems. This limitation has left IT and security teams without a clear strategy for addressing unmanaged endpoints.

Without visibility, there’s no enforcement. Security leaders know there are unmanaged devices accessing corporate resources, but most don’t have the tools to monitor them, restrict access, or ensure compliance. If MDM solutions don’t offer coverage, unmanaged endpoints effectively operate outside an organization’s security framework, defeating the purpose of access controls and other protective measures.

Executives need to look beyond traditional solutions. The problem won’t be solved by applying outdated tools to a modern challenge. Companies need new security strategies that extend visibility to every device accessing their systems—whether directly managed or not. Security teams must move toward solutions that enforce authentication, compliance, and continuous monitoring without creating excessive friction for employees and third parties.

Organizations that fail to address this issue are allowing attackers an easy target. Modern cybersecurity has moved toward a zero-trust model for a reason: assumptions about security based on outdated tools or policies no longer work. Managing risk means adapting security approaches to fit today’s challenges, and unmanaged devices are one of the biggest gaps companies have yet to close.

Unmanaged devices must be integrated into a zero-trust security strategy

Zero trust has fundamentally changed the way companies approach cybersecurity. Instead of assuming internal systems and users are trustworthy, security teams now verify everything—every user, every application, and every device. But in many organizations, unmanaged devices remain an exception to this model, creating a security gap that attackers can exploit.

A proper zero-trust approach treats unmanaged devices the same as any other potential risk. That means continuous authentication, strict access controls, and real-time compliance enforcement before allowing any device to interact with corporate data. This means making sure that if an unmanaged device is used, it meets security standards before connecting to business-critical applications.

Companies have already applied zero trust principles to identity management, authentication, and network security. Extending that same philosophy to endpoints requires a layered approach—one that enforces mandatory security controls without overly restricting how employees and contractors work. Security shouldn’t come at the cost of productivity, but it also can’t be optional.

Executives need to think beyond traditional cybersecurity policies. Every unmanaged device represents a potential entry point for an attacker, and waiting to solve this problem after a breach isn’t an option. Successful zero-trust implementation requires broadening security measures to account for every endpoint—whether managed or not.

Balancing security and employee privacy in BYOD environments

Bring-your-own-device (BYOD) policies have improved productivity by allowing employees to work with familiar hardware. At the same time, they have introduced security concerns that many companies have yet to resolve. Allowing access from personal devices without visibility or control creates a risk that cannot be ignored.

Security teams often face pushback when implementing strong protections for personal devices. Employees do not want intrusive monitoring on phones and laptops that they also use for personal tasks. The challenge is finding a balance—providing strong security without overstepping boundaries. This requires verifying that personal devices are being used by approved users and ensuring that they meet minimum security requirements, such as up-to-date operating systems and encrypted storage.

This is a matter of trust. The workforce expects privacy, and heavy-handed security solutions that monitor personal data can lead to frustration or resistance. Even something as common as email access from a personal device can become an entry point for attackers. Policies need to be clear: unmanaged devices should only connect under conditions that maintain security without violating personal privacy.

For executives, the key takeaway is that BYOD isn’t the problem, poor security policies are. It is entirely possible to allow personal devices while maintaining strong security, but it requires solutions that verify users and enforce basic protections without unnecessary intrusions. Security and privacy should reinforce each other, not compete. Companies that fail to strike this balance will either face security risks or resistance from their workforce, neither of which is acceptable.

High-risk users and devices require stricter security controls

Not all devices pose the same level of risk. A personal smartphone used to check emails carries different security implications than a developer’s laptop with elevated access to critical systems. Yet, many organizations fail to apply stricter security requirements to devices based on their level of access and potential risk.

Developers, system administrators, and other high-privilege users handle sensitive infrastructure, source code, and security configurations. If their devices are compromised, attackers gain access to systems that go far beyond a single endpoint. This is why unmanaged devices should not be an option for these roles—every endpoint with high-level access needs to be secured, monitored, and kept compliant with security policies.

Even managed devices require scrutiny. Many MDM solutions offer basic oversight, but they fall short in preventing sophisticated attacks. A device that is considered “managed” but lacks strong authentication, encryption, or monitoring is still a weak link. Companies should reassess whether their current security stack truly protects their most critical users, rather than assuming management tools alone are enough.

For executives, the priority should be clear: not all devices deserve the same level of trust. Employees handling sensitive data or infrastructure must operate under stricter security requirements, regardless of how inconvenient enforcement might seem. Cybercriminals go after high-value targets first, and weak endpoint security makes their job much easier. Addressing this now reduces the likelihood of costly breaches later.

Security strategies

There is no universal security strategy that works for every company. Risk tolerance, compliance obligations, and business operations all influence how organizations approach threats like unmanaged devices. However, one issue remains constant, security policies must account for both protection and employee privacy.

Heavy-handed security measures often face resistance, especially when applied to personal devices. Employees do not want IT departments monitoring their private data, and enforcing invasive security policies can create unnecessary friction. At the same time, ignoring security gaps in unmanaged devices is not an option. Organizations need solutions that verify devices, enforce basic security standards, and restrict access to unauthorized endpoints—without overstepping personal boundaries.

A strategic approach means companies must balance enforcement with practicality. Some industries may require stricter compliance frameworks, while others may allow more flexibility based on risk exposure. What works for a highly regulated financial firm may not be necessary for a creative agency. Understanding these differences and structuring security policies accordingly ensures both effectiveness and employee cooperation.

Executives need to prioritize both security and usability. A culture of security is more effective than strict, top-down policies that employees attempt to bypass. Organizations that implement clear, privacy-conscious security measures will see stronger adoption and fewer security blind spots. Taking employee concerns into account while maintaining strict access controls is not just an ethical decision—it’s a practical one.

Addressing unmanaged devices

The security risks posed by unmanaged devices will not resolve themselves. As more employees and contractors rely on personal hardware, the attack surface expands, making it easier for bad actors to exploit gaps in visibility and control. Organizations that fail to act now will eventually face the consequences—whether through a data breach, ransomware attack, or operational disruption.

History has shown that security challenges can be addressed with the right combination of technology and policy. The move away from traditional passwords toward multifactor authentication and passwordless security took time, but it significantly reduced credential-based attacks. The same level of effort needs to be applied to unmanaged devices. Companies can no longer afford to overlook them as an accepted risk.

This is not just a technical challenge—it is a leadership challenge. Executives must ensure that cybersecurity teams have the resources they need to enforce policies that protect the organization without disrupting productivity. Ignoring unmanaged devices today creates a direct path for attackers tomorrow.

Businesses that take a proactive approach now will be in a far stronger position moving forward. Cyber threats will only become more sophisticated, and security strategies must evolve accordingly. Organizations that delay action will eventually be forced to address this issue under much worse conditions—after an attack has already happened. The time to act is now.

Final thoughts

Unmanaged devices are no longer a minor oversight. They are a growing security liability that attackers actively exploit. Companies can’t afford to ignore them, yet many still allow personal and contractor devices to access critical systems without proper controls. The longer this remains an unresolved issue, the greater the risk of ransomware attacks, data breaches, and regulatory consequences.

Traditional solutions don’t address this problem effectively, which means security strategies need to evolve. Strong authentication, endpoint verification, and continuous monitoring for every connected device—whether corporate-owned or not—must become the standard. Security teams need executive support, proper funding, and the authority to enforce new policies without unnecessary friction.

Executives who take proactive steps now will strengthen their organization’s security posture before a crisis forces change. The cost of inaction is far greater than the investment required to close these gaps today. Cyber threats aren’t slowing down, and businesses that adapt quickly will be the ones that stay ahead.

Alexander Procter

March 25, 2025

10 Min