May 26, 2025
Your employees could pose the greatest cybersecurity threat to your organization, not only due to their tendency to click on phishing emails or reuse passwords but also because they are using applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the rapidly growing security threats businesses face today. Employees often download and utilize unauthorized applications, software, and cloud services—usually with good intentions—yet they inadvertently create significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology used within a business that has not been approved, vetted, or secured by the IT department. This can include:
- Employees utilizing personal Google Drive or Dropbox accounts for storing and sharing work 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 communication outside official channels.
- Marketing teams employing 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 means IT teams cannot 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.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized applications often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, the use of unapproved apps can result in noncompliance, leading to fines and legal issues.
- Increased Phishing And Malware Risks: Employees may unknowingly download malicious applications that seem legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the intent is not malicious. For instance, the "Vapor" app scandal revealed a significant ad fraud scheme where over 300 malicious applications were found on the Google Play Store, collectively downloaded more than 60 million times. These apps pretended to be useful utilities but were designed to display intrusive ads and, in some instances, steal user credentials and credit card information. Once installed, they concealed their icons and overwhelmed users with ads, crippling device functionality. This incident illustrates how easily unauthorized apps can compromise security.
Employees may resort to unauthorized applications 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 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
Since you cannot address what you cannot see, tackling Shadow IT necessitates a proactive strategy. Here are some initial steps:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications that employees can use. Ensure 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. Any tool needed should require IT approval first.
3. Educate Employees About The Risks
Employees must recognize that Shadow IT is not merely a shortcut for productivity but a significant security risk. Regular training should be provided to inform your team about the dangers of unauthorized apps.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ network-monitoring tools to detect unauthorized software usage and identify potential security threats before they escalate.
5. Implement Strong Endpoint Security
Utilize endpoint detection and response 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 issue.
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