May 26, 2025
Your employees may pose the greatest cybersecurity threat to your organization, not solely 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 expanding security threats for businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, inadvertently creating significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not received approval, vetting, or security measures from the IT department. This can include:
- Employees storing and sharing work documents using personal Google Drive or Dropbox accounts.
- Teams enrolling in unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like 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 absence 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 unintentionally leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: While IT departments routinely update approved software to address vulnerabilities, unauthorized applications often go unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved applications can result in noncompliance, 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 (MFA) can expose employee credentials, enabling hackers to access company systems.
Why Do Employees Use Shadow IT?
Typically, the use of Shadow IT is not malicious. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme with over 300 malicious applications found on the Google Play Store, downloaded more than 60 million times. These apps masqueraded as utilities and health tools but were designed to display intrusive ads and, in some cases, 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 underscores how easily unauthorized applications can infiltrate devices and jeopardize security.
Employees may turn 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 believe IT approval processes take too long, prompting them to seek shortcuts.
Regrettably, 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 effectively address Shadow IT, 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 this list is regularly updated with newly approved tools.
2. Restrict Unauthorized App Downloads
Establish device policies that prevent employees from installing unapproved software on company devices. Employees should be required to request IT approval for any needed tools.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut; it poses a 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 utilize network-monitoring tools to identify unauthorized software usage 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 way to combat Shadow IT is to address it proactively before it results in a data breach or compliance crisis.
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