May 26, 2025
Your employees could pose 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 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 for organizations today. Employees often download and utilize unauthorized applications, software, and cloud services, usually with good intentions, but they inadvertently create significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within an organization that has not been approved, vetted, or secured by the IT department. Examples 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 oversight.
- Workers installing messaging apps 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 that IT teams cannot secure them, exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps can unintentionally leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: IT departments regularly update approved software to address vulnerabilities, but 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 applications 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: Utilizing 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 unauthorized applications is not malicious. For example, the "Vapor" app scandal revealed an extensive ad fraud scheme where over 300 malicious applications were found on the Google Play Store, collectively downloaded over 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 concealed their icons and inundated users with full-screen ads, rendering devices nearly unusable. This incident underscores how easily unauthorized apps can compromise security.
Employees may also resort to unauthorized applications because:
- They find company-approved tools frustrating or outdated.
- They aim to work faster and more efficiently.
- They are unaware of the associated security risks.
- They believe that obtaining IT approval takes too long, prompting them to 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
Addressing Shadow IT requires a proactive approach 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 that employees can utilize. 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 must understand that Shadow IT is not merely a productivity shortcut but a security risk. Provide regular training on why unauthorized applications can jeopardize the business.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ network-monitoring tools to identify unauthorized software use 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 Let Shadow IT Become A Security Nightmare
The most effective way to combat Shadow IT is to proactively address it before it results in a data breach or compliance disaster.
Want to know what unauthorized apps your
employees are using right now? Start with a FREE 15-Minute Discovery Call. We'll identify vulnerabilities, flag security risks and help
you lock down your business before it's too late.
Click
here or give us a call at (336) 443-0061 to schedule your FREE
15-Minute Discovery Call today!
