May 26, 2025
Your employees could represent the greatest cybersecurity threat to your organization, not just 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 knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a business that has not been authorized, vetted, or secured by the IT department. This can include:
- Employees using personal Google Drive or Dropbox accounts to store and share work-related documents.
- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging apps such as WhatsApp or Telegram on company devices for communication outside official channels.
- 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 that IT teams have over these tools makes it impossible for them to secure them, exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps can inadvertently leak sensitive company information, making it easier for cybercriminals to intercept it.
- No Security Updates: IT departments regularly update approved software to fix vulnerabilities, but unauthorized apps often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: If your business is 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 apps that seem legitimate but contain malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication (MFA) can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the use of Shadow IT is not malicious. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme where over 300 malicious applications were found on the Google Play Store, collectively downloaded more than 60 million times. These apps masqueraded as utilities and health tools but were designed to display intrusive ads and sometimes phish for user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, rendering devices nearly inoperative. This incident illustrates how easily unauthorized apps can breach devices and compromise security.
Employees may also resort to unauthorized applications because:
- They find company-approved tools frustrating or outdated.
- They aim to work faster and more efficiently.
- They are unaware of the associated security risks.
- They believe that obtaining IT approval takes too long, prompting them to take shortcuts.
Unfortunately, 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
To address Shadow IT effectively, a proactive approach is necessary. Here are some steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications that employees can use. Ensure that this list is regularly updated with new, approved tools.
2. Restrict Unauthorized App Downloads
Establish device policies that prevent employees from installing unapproved software on company devices. If they require a tool, they should seek IT approval first.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut but a security risk. Conduct regular training sessions to inform your team about the dangers of using unauthorized applications.
4. Monitor Network Traffic For Unapproved Apps
IT teams should utilize network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security
Deploy endpoint detection and response (EDR) solutions to monitor software usage, prevent unauthorized access, and detect any 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 leads to a data breach or compliance issue.
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