May 26, 2025
Your employees could be 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 utilizing applications that your IT team is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the fastest-growing security threats facing businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior can create significant security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a business that has not been approved, vetted, or secured by the IT department. Examples include:
- Employees utilizing personal Google Drive or Dropbox accounts to store and share work documents.
- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like WhatsApp or Telegram on company devices to communicate outside of 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 prevents them from securing 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.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized applications often remain unchecked, leaving systems susceptible to hackers.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved applications can result in noncompliance, fines, and legal issues.
- 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 expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
Most of the time, employees do not act with malicious intent. For instance, the "Vapor" app scandal revealed a significant ad fraud scheme, where 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 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 inoperative. This incident underscores how easily unauthorized applications can compromise security.
Employees may also turn to unauthorized apps 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, prompting them to take shortcuts.
Regrettably, these shortcuts can have significant financial repercussions 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, you need a proactive strategy. Here's how to begin:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted and secure applications that employees can use, ensuring 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 recognize that Shadow IT is not merely a productivity shortcut but a security risk. Conduct regular training sessions to inform your team about the dangers of unauthorized applications.
4. Monitor Network Traffic For Unapproved Apps
IT teams should utilize network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security
Employ endpoint detection and response solutions to monitor software usage, prevent unauthorized access, and detect any 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 crisis.
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