May 26, 2025
Your employees could be the greatest cybersecurity threat to your business, not just because they may fall for phishing scams 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 most rapidly growing security risks for businesses today. Employees often download and utilize unauthorized apps, software, and cloud services, usually with good intentions, but this behavior creates significant security vulnerabilities that they may not even recognize.
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. This can include:
- Employees using personal Google Drive or Dropbox accounts for work document storage and sharing.
- Teams signing up for unapproved project management tools such as 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 employing AI content generators or automation tools without verifying their security.
Why Is Shadow IT So Dangerous?
The lack of visibility and control that IT teams have over these tools means they cannot secure them, thereby exposing businesses to various threats.
- Unsecured Data-Sharing: Employees utilizing 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 apps often go unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: If your business is subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved apps can lead to noncompliance, resulting in fines and legal issues.
- 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 can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the motivation is not malicious. For instance, the "Vapor" app scandal involved a widespread ad fraud scheme recently uncovered by security researchers.
In March, over 300 malicious applications were identified on the Google Play Store, collectively 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, crippling devices. 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 more quickly and efficiently.
- They may not recognize the associated security risks.
- They believe 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 can't address what you can't see, managing Shadow IT requires a proactive approach. Here are some steps to get started:
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
Employees must understand that Shadow IT is not merely a productivity shortcut but a security risk. Regular training on the dangers of unauthorized apps is essential.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ network-monitoring tools to identify unauthorized software use 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 activity 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 leads to a data breach or compliance disaster.
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