May 26, 2025
Your employees may pose the greatest cybersecurity threat to your business, not solely due to their tendency to click on phishing emails or reuse passwords, but also 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 increasing security threats facing businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior inadvertently creates significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a company that has not been approved, vetted, or secured by the IT department. Examples include:
- Employees using personal Google Drive or Dropbox accounts for storing and sharing work documents.
- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging apps such as 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 lack 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 may inadvertently leak sensitive company information, making it easier for cybercriminals to intercept data.
- 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, fines, and legal issues from using unapproved applications.
- 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 (MFA) can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the use of Shadow IT 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 found 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 hid their icons and inundated users with full-screen ads, rendering devices nearly inoperative. This incident illustrates how easily unauthorized apps can infiltrate devices and compromise security.
Additionally, employees may resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They aim to work faster and more efficiently.
- They are unaware of the security risks involved.
- They believe 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
Addressing Shadow IT requires a proactive approach, as 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 that employees can use. Ensure this list is regularly updated with newly approved tools.
2. Restrict Unauthorized App Downloads: Implement device policies to prevent employees from installing unapproved software on company devices. They should request IT approval for any necessary tools.
3. Educate Employees About The Risks: Employees must understand that Shadow IT is not merely a productivity shortcut; it poses a security risk. Regularly train your team on the dangers of using unauthorized applications.
4. Monitor Network Traffic For Unapproved Apps: IT teams should utilize network-monitoring tools to detect unauthorized software usage and identify 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 leads to a data breach or compliance disaster.
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