May 26, 2025
Your employees could be your organization's greatest cybersecurity vulnerability, not just because they might fall for phishing scams or reuse passwords, but because they often utilize applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the fastest-growing security threats to businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this can create significant security risks without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business 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 oversight from IT.
- 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 that IT teams have over these tools means they 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 access.
- No Security Updates: IT departments routinely update approved software to fix vulnerabilities, but unauthorized applications often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved applications can result in noncompliance, leading to fines and legal issues.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that seem legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication can expose employee credentials, enabling hackers to infiltrate company systems.
Why Do Employees Use Shadow IT?
In most cases, employees do not act with malicious intent. For instance, the "Vapor" app scandal recently uncovered by IAS Threat Labs involved over 300 malicious applications on the Google Play Store, collectively 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, 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 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 aim to work more quickly and effectively.
- 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 your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
To address Shadow IT, a proactive approach is essential. Here are some steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to compile a list of trusted, secure applications for employee 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. Employees should seek IT approval before acquiring any tools.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut; it poses a security risk. Regular training sessions should be held to explain 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 usage and flag potential security threats before they escalate.
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 strategy against Shadow IT is to address it proactively before it leads to a data breach or compliance issue.
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