May 26, 2025
Your employees may pose the greatest cybersecurity threat to your organization, not just because they might fall for phishing scams 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 is rapidly becoming one of the most significant security threats faced by businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior creates serious security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a business that has not been approved, evaluated, or secured by the IT department. This can include:
- Employees utilizing personal Google Drive or Dropbox accounts to store and share work-related documents.
- Teams signing up for unapproved project management platforms like Trello, Asana, or Slack without oversight from IT.
- Workers installing messaging applications such as WhatsApp or Telegram on company devices to communicate outside official channels.
- Marketing teams using AI content generators or automation tools without confirming 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.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps can inadvertently expose 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 susceptible to attacks.
- Compliance Violations: If your business is subject to regulations like HIPAA, GDPR, or PCI-DSS, utilizing unapproved applications can result in noncompliance, fines, and legal repercussions.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that seem legitimate but contain malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication can compromise employee credentials, allowing 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 an extensive ad fraud scheme involving over 300 malicious applications that were discovered on the Google Play Store in March, 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, steal user credentials and credit card information. Once installed, they concealed their icons and bombarded users with full-screen ads, rendering devices nearly unusable. This incident underscores how easily unauthorized applications can compromise security.
Employees may also use unauthorized applications because:
- They find approved tools frustrating or outdated.
- They seek to work more efficiently.
- They are unaware of the associated security risks.
- They believe that obtaining IT approval takes too long, leading them to 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
You cannot address what you cannot see, so combating Shadow IT necessitates a proactive strategy. 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 that employees can utilize. 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. If they require a specific tool, they should seek IT approval first.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity hack; it poses a security threat. Regular training should be provided to explain why unauthorized applications can jeopardize the business.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ 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 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 issues.
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