May 26, 2025
Your employees could represent the largest cybersecurity threat to your organization, not just because they may 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 challenges for businesses. Employees often download and utilize unauthorized applications, software, and cloud services with good intentions, but this can create substantial security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not received approval, evaluation, or security measures from 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 involvement.
- Workers installing messaging applications such as WhatsApp or Telegram on company devices to communicate 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 unauthorized 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 may inadvertently leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: While IT departments routinely update approved software to fix vulnerabilities, unauthorized applications often go unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues by using unapproved applications.
- Increased Phishing and Malware Risks: Employees may unknowingly download harmful applications disguised as legitimate ones, which could contain malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication can compromise 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, a recent ad fraud scheme uncovered by IAS Threat Labs revealed over 300 malicious applications on the Google Play Store, which were downloaded more than 60 million times. These apps masqueraded as utilities and health tools but were designed to display intrusive ads and, in some cases, steal user credentials and credit card information. Once installed, they hid their icons and overwhelmed users with full-screen ads, crippling their devices. This incident illustrates how unauthorized applications can easily infiltrate devices and jeopardize security.
Employees may also resort to unauthorized applications because:
- They find company-approved tools to be 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, prompting them to take shortcuts.
Unfortunately, these shortcuts can lead to significant costs for the business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
To effectively address Shadow IT, you need a proactive approach. Here are steps to get started:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications for employees to use, ensuring 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 be required to seek IT approval before acquiring any new tools.
3. Educate Employees About The Risks
Employees must recognize that Shadow IT is not merely a productivity enhancer; it poses a security threat. Regular training should be provided to inform your team about the risks associated with unauthorized applications.
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 into larger problems.
5. Implement Strong Endpoint Security
Utilize endpoint detection and response 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 address it proactively before it results in a data breach or compliance disaster.
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