May 26, 2025
Your employees could pose the greatest cybersecurity threat to your business, and it's not just due to their tendency to click on phishing emails or reuse passwords. The real issue lies in their use of applications that your IT team is unaware of.
This phenomenon is known as Shadow IT, and it is rapidly emerging as a significant security risk for organizations today. Employees often download and utilize unauthorized applications, software, and cloud services, usually with the best intentions. However, this behavior inadvertently creates substantial security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not received approval, scrutiny, or security measures from the IT department. Examples include:
- Employees utilizing personal Google Drive or Dropbox accounts to store and share 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 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 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 inadvertently leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: IT departments routinely update approved software to fix vulnerabilities, but unauthorized applications often go unmonitored, leaving systems vulnerable to attacks.
- Compliance Violations: For businesses under 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 applications that appear legitimate but harbor malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication 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 example, the "Vapor" app scandal, which involved an extensive ad fraud scheme, illustrates this point. 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 overwhelmed 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 applications because:
- They find company-approved tools frustrating or outdated.
- They seek to work more quickly and efficiently.
- They are unaware of the associated security risks.
- They believe that obtaining IT approval takes too long and opt for 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
To address Shadow IT effectively, a proactive strategy is essential. Here are steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to compile a list of trusted, secure applications that employees may 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 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 but a security risk. Regular training should be provided to inform the team about the dangers of unauthorized applications.
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 address it proactively before it leads to a data breach or compliance disaster.
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