May 26, 2025
Your employees could pose the greatest cybersecurity threat to your organization, not just because they might fall for phishing scams or reuse passwords, but 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 expanding security threats facing businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, yet they inadvertently create significant 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. This can include:
- Employees using personal Google Drive or Dropbox accounts for work-related document storage and sharing.
- Teams subscribing to unapproved project management tools such as Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like WhatsApp or Telegram on company devices for communication outside of 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 prevents IT teams from securing them, exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps risk leaking 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 vulnerable to hackers.
- Compliance Violations: Businesses governed by regulations such as HIPAA, GDPR, or PCI-DSS may face noncompliance, fines, and legal issues by using unapproved applications.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that masquerade as legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication can expose employee credentials, allowing hackers access to 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, an extensive ad fraud scheme recently revealed by IAS Threat Labs, involved over 300 malicious applications found on the Google Play Store that were downloaded more than 60 million times. These apps disguised themselves as utilities and lifestyle tools, but were actually designed to display intrusive ads and, in some instances, phish for user credentials and credit card information. Once installed, they hid their icons and bombarded users with full-screen ads, crippling devices. This incident underscores how unauthorized applications can easily infiltrate devices and jeopardize security.
However, employees may also resort to unauthorized applications because:
- They find company-approved tools frustrating or outdated.
- They aim 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.
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
Addressing Shadow IT requires a proactive approach since you cannot manage what you cannot see. Here are some steps to take:
1. Create An Approved Software List
Collaborate with your IT team to compile a list of trusted and secure applications for employee 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 recognize that Shadow IT is not merely a productivity shortcut; it poses a security threat. Regular training should be provided to explain 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 strategy against Shadow IT is to proactively address it before it results in a data breach or compliance catastrophe.
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