May 26, 2025
Your employees could be the most significant cybersecurity threat to your business, not solely because they might click on phishing emails or reuse passwords, but 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 fastest-growing security risks for businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this can lead to significant security vulnerabilities without their realization.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not been approved, vetted, or secured by the IT department. Examples include:
- Employees storing and sharing work documents using personal Google Drive or Dropbox accounts.
- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like WhatsApp or Telegram on company devices to communicate 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 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 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 go unchecked, leaving systems vulnerable to attacks.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues when using unapproved applications.
- 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 access to company systems.
Why Do Employees Use Shadow IT?
Often, the motivation is not malicious. For instance, the "Vapor" app scandal revealed a widespread ad fraud scheme with over 300 malicious applications on the Google Play Store, downloaded more than 60 million times. These apps appeared as utilities and lifestyle tools but were designed to display intrusive ads and phish for user credentials. They hid their icons once installed, bombarding users with ads and rendering devices nearly unusable. This incident illustrates how easily unauthorized apps can compromise security.
Employees may also resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They seek to work faster and more efficiently.
- They are unaware of the associated security risks.
- They believe that IT approval processes are too lengthy, leading 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
Addressing Shadow IT requires a proactive approach since you can't manage what you can't see. Here's how to begin:
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 new approved tools.
2. Restrict Unauthorized App Downloads: Implement device policies that prevent employees from installing unapproved software on company devices. They should request IT approval before acquiring any tool.
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 to explain how unauthorized apps can jeopardize the business.
4. Monitor Network Traffic For Unapproved Apps: IT teams should utilize network-monitoring tools to identify unauthorized software use and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security: Employ 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 strategy against Shadow IT is to proactively address it before it results in a data breach or compliance disaster.
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