May 26, 2025
Your employees may 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 utilizing applications that your IT department is unaware of.
This phenomenon, known as Shadow IT, is rapidly becoming one of the most significant security risks for businesses. Employees often download and use unauthorized applications, software, and cloud services, typically with good intentions, but they inadvertently create substantial security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not been approved, assessed, or secured by the IT department. Examples 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 applications such as WhatsApp or Telegram on company devices to communicate outside of official channels.
- Marketing teams using AI content generators or automation tools without confirming their security.
Why Is Shadow IT So Dangerous?
Lack of visibility and control over these unauthorized tools means that IT teams cannot secure them, exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps may 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 applications that seem legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication (MFA) can expose employee credentials, enabling hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the use of unauthorized applications is not malicious. For instance, the "Vapor" app scandal revealed a significant ad fraud scheme with over 300 malicious applications discovered on the Google Play Store, collectively downloaded more than 60 million times. These apps disguised themselves as helpful tools but were designed to display intrusive ads and, in some cases, phish for user credentials and credit card information.
Employees may resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They aim to work more quickly and efficiently.
- They are unaware of the associated security risks.
- They perceive the IT approval process as too lengthy and take shortcuts.
Unfortunately, these shortcuts can result in 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, as you cannot manage what you cannot see. Here are some steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted and secure applications for employee use. Ensure this list 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 request IT approval if they need a specific tool.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut; it poses a security risk. Conduct regular training sessions to explain why unauthorized applications can jeopardize the business.
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 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 crisis.Want to know what unauthorized apps your employees are using right now? Start with a FREE 15-Minute Discovery Call. We'll identify vulnerabilities, flag security risks and help you lock down your business before it's too late.
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