May 26, 2025
Your employees may represent the greatest cybersecurity threat to your organization, not solely due to their tendency to click on phishing emails or reuse passwords, but because they are utilizing applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it is rapidly becoming one of the most significant security risks for businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior creates substantial security vulnerabilities without their awareness.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a company that has not received approval, vetting, or security from the IT department. Examples include:
- Employees using personal Google Drive or Dropbox accounts for storing and sharing work-related documents.
- Teams subscribing to unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications such as WhatsApp or Telegram on company devices for external communication.
- Marketing teams utilizing AI content generators or automation tools without confirming their security.
Why Is Shadow IT So Dangerous?
The lack of visibility and control over these tools prevents IT teams from securing them, exposing businesses to various threats:
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps may unintentionally leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized applications often go unchecked, leaving systems vulnerable to attacks.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved applications can lead to noncompliance, resulting in fines and legal issues.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that appear legitimate but harbor malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication (MFA) can compromise employee credentials, enabling hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, employees do not act with malicious intent. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme involving over 300 malicious applications on the Google Play Store, which were downloaded more than 60 million times. These apps masqueraded as utilities and health tools but were designed to display intrusive ads and, in some cases, steal user credentials. This incident underscores the ease with which unauthorized applications can breach devices and jeopardize security.
Employees may also resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They seek to work more quickly and efficiently.
- They are unaware of the associated security risks.
- They perceive IT approval processes as too lengthy, prompting them to take shortcuts.
Regrettably, these shortcuts can lead to significant costs for your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
Addressing Shadow IT requires a proactive strategy, as you cannot manage what you cannot see. Here are steps to get started:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications for employee use, ensuring it is regularly updated with newly approved tools.
2. Restrict Unauthorized App Downloads
Implement device policies that prevent employees from installing unapproved software on company devices. Employees should be required to seek IT approval for any necessary tools.
3. Educate Employees About The Risks
Employees must recognize that Shadow IT is not merely a productivity shortcut but a security threat. Conduct regular training to inform your team about the risks associated with unauthorized applications.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security
Utilize endpoint detection and response (EDR) solutions to monitor software usage, prevent unauthorized access, and detect suspicious activity in real-time.
Don't Let Shadow IT Become A Security Nightmare
The most effective way to combat Shadow IT is to address it proactively before it results in a data breach or compliance failure.
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