May 26, 2025
Your employees may represent the greatest cybersecurity threat to your organization, not solely due to their tendency to click on phishing emails or reuse passwords, but because they are utilizing applications that your IT department is unaware of.
This situation is known as Shadow IT, and it is rapidly becoming one of the most significant security challenges for businesses today. Employees often download and use unauthorized applications, software, and cloud services, usually with good intentions, but they inadvertently create substantial security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a company that has not received approval, evaluation, or security measures from the IT department. This can involve:
- Employees using 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 for communication outside official channels.
- Marketing teams employing 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 utilizing 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 address vulnerabilities, but unauthorized applications often remain unchecked, leaving systems vulnerable to attacks.
- Compliance Violations: If your organization is subject to regulations such as HIPAA, GDPR, or PCI-DSS, the use of unapproved applications can lead to noncompliance, resulting in fines and legal repercussions.
- Increased Phishing and Malware Risks: Employees might unwittingly download harmful applications that appear 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 example, the "Vapor" app scandal, an extensive ad fraud scheme uncovered by IAS Threat Labs, illustrates this point.
In March, over 300 malicious applications were found on the Google Play Store, collectively downloaded more than 60 million times. These applications masqueraded as utilities and health tools but were designed to display intrusive ads and, in some cases, to phish for user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, nearly crippling devices. This incident underscores how easily unauthorized applications can compromise security.
Employees may also resort to unauthorized applications because:
- They find the tools approved by the company frustrating or outdated.
- They seek to work more quickly and efficiently.
- They are unaware of the security risks involved.
- They perceive the IT approval process as too lengthy and take shortcuts.
Unfortunately, these shortcuts can have significant consequences 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 approach is necessary since you cannot manage what you cannot see. Here are steps to take:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications for employee use. Ensure that 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. Employees should request IT approval before acquiring any tools.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut but a security threat. Provide regular training on the risks associated with 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 (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 proactively address it before it leads to a data breach or compliance issues.
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