May 26, 2025
Your employees could pose the greatest cybersecurity threat to your business, 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 represents one of the most rapidly growing security threats for organizations today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior can create significant security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology used in a business that has not received approval, vetting, or security measures from the IT department. This can include instances such as:
- Employees using personal Google Drive or Dropbox accounts for storing and sharing work-related documents.
- 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 of official channels.
- Marketing teams utilizing AI content generators or automation tools without confirming their security.
Why Is Shadow IT So Dangerous?
The absence of visibility and control over these unauthorized tools prevents IT teams from securing them, exposing businesses to various threats, including:
- 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 access.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized applications often remain unchecked, leaving systems vulnerable to attacks.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS may face noncompliance issues, fines, and legal repercussions for using unapproved apps.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that masquerade as legitimate but contain harmful software.
- Account Hijacking: The use of unauthorized tools without multifactor authentication can expose employee credentials, enabling hackers to infiltrate 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 a significant ad fraud scheme discovered by security researchers. Over 300 malicious applications were found on the Google Play Store, collectively downloaded more than 60 million times. These apps disguised themselves as utilities and lifestyle tools but were actually designed to display intrusive ads and, in some instances, steal user credentials and credit card information. This incident illustrates how unauthorized applications can easily compromise device security.
Employees may resort to unauthorized apps for several reasons:
- They find company-approved tools frustrating or outdated.
- They aim to work faster and more efficiently.
- They may not recognize the associated security risks.
- They perceive IT approval processes as too time-consuming, prompting them to take shortcuts.
Unfortunately, these shortcuts can have significant consequences 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, combating Shadow IT requires a proactive strategy. 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, ensuring 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
It is crucial for employees to understand that Shadow IT is not merely a productivity shortcut but a security risk. Regular training should be provided to emphasize how unauthorized apps can jeopardize the business.
4. Monitor Network Traffic For Unapproved Apps
IT teams should implement 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 solutions to monitor software usage, prevent unauthorized access, and detect suspicious activities in real-time.
Don't Let Shadow IT Become A Security Nightmare
The most effective way to combat Shadow IT is to proactively address it before it results in a data breach or compliance issues.
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