May 26, 2025
Your employees could be the largest cybersecurity threat to your business, not just because they might fall for phishing scams 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 is rapidly becoming one of the most significant security threats facing businesses today. Employees often download and utilize 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 business that has not been approved, evaluated, 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 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 verifying 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: While IT departments regularly update approved software to address vulnerabilities, unauthorized applications often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: If your business is subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved apps can result in noncompliance, fines, and legal issues.
- Increased Phishing And Malware Risks: Employees may unknowingly download malicious apps that seem 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, employee use of unauthorized apps is not malicious. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme where over 300 malicious applications were found on the Google Play Store, downloaded more than 60 million times. These apps masqueraded as utilities and lifestyle 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 inundated users with full-screen ads, rendering devices nearly unusable. This incident underscores how easily unauthorized apps can compromise security.
Employees might also turn 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 lead to significant costs for your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
You cannot address what you cannot see, so managing Shadow IT requires 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, secure applications that employees can use. Ensure 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 need to recognize that Shadow IT is not merely a productivity shortcut; it poses a security risk. Regularly train your team on the dangers of using 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 (EDR) solutions to monitor software usage, prevent unauthorized access, and detect suspicious activity in real-time.
Don't Allow Shadow IT To 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 crisis.
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