May 26, 2025
Your employees could pose the greatest cybersecurity threat to your organization, not just due to their tendency to click on phishing emails or reuse passwords, but because they are using applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the most rapidly growing security threats facing businesses today. Employees often download and utilize unauthorized applications, software, and cloud services—typically with the best of intentions—yet they inadvertently create significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not been approved, assessed, or secured by the IT department. This can include:
- 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 IT supervision.
- 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 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.
- No Security Updates: While IT departments regularly update approved software to fix vulnerabilities, unauthorized applications often go unchecked, leaving systems open to attacks.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues when using unapproved apps.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious 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, employees do not act with malicious intent. For instance, the "Vapor" app scandal involved over 300 malicious applications found on the Google Play Store, which were downloaded more than 60 million times. These apps masqueraded as utilities and lifestyle tools but were actually designed to display intrusive ads and, in some instances, steal user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, rendering devices nearly unusable. This incident illustrates how easily unauthorized applications can compromise security.
Employees may also resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They wish to work more quickly and 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 have significant consequences for your business when a data breach occurs.
How To Stop Shadow IT Before It Hurts Your Business
Addressing Shadow IT requires a proactive approach since you cannot manage what you cannot see. Here are some steps to get started:
1. Create An Approved Software List
Collaborate with your IT team to compile a list of trusted, secure applications that employees can use. Ensure that this list is regularly updated with new, approved tools.
2. Restrict Unauthorized App Downloads
Implement device policies that prevent employees from installing unapproved software on company devices. They should seek IT approval first if they require a tool.
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 your team about the dangers posed by 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 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 results in a data breach or compliance failure.
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