May 26, 2025
Your employees may pose the greatest cybersecurity threat to your business, not only due to their tendency to click on phishing emails or reuse passwords, but also because they are using applications that your IT team is unaware of. This phenomenon is known as Shadow IT, and it represents one of the fastest-growing security risks for organizations today. Employees often download and utilize unauthorized apps, software, and cloud services with good intentions, but this behavior creates significant security vulnerabilities without their awareness.
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. Examples include:
- Employees utilizing 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 oversight from IT.
- Workers installing messaging applications such as WhatsApp or Telegram on company devices for communication 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, 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 intercept.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized apps often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: Businesses subject to regulations such as HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues by using unapproved applications.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious apps that appear legitimate but contain malware or ransomware.
- Account Hijacking: Using 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, employees do not act with malicious intent. For instance, the "Vapor" app scandal involved over 300 malicious applications found on the Google Play Store, which were 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 instances, phish for user credentials and credit card information. Once installed, they hid their icons and inundated users with full-screen ads, rendering devices nearly unusable. This incident underscores how easily unauthorized apps can compromise security.
Employees may also resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They aim to work more quickly and efficiently.
- They do not recognize the associated security risks.
- They believe obtaining IT approval takes too long, prompting them to take shortcuts.
Regrettably, 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
To address Shadow IT, a proactive approach is essential since you cannot manage what you cannot see. Here are steps to get started:
1. Create An Approved Software List: Collaborate with your IT team to develop a list of trusted, secure applications for employees to 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 seek IT approval for any required tools.
3. Educate Employees About The Risks: Employees must understand that Shadow IT is not merely a productivity shortcut but a security risk. Regular training should be provided on the potential dangers of unauthorized apps.
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 crisis.
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