May 26, 2025
Your employees may be your greatest cybersecurity vulnerability, and it's not just because they might click on phishing emails or reuse passwords. The real issue lies in the fact that 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 businesses face today. Employees often download and utilize unauthorized applications, software, and cloud services, usually with good intentions, but this behavior creates significant security risks without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not been approved, assessed, or secured by the IT department. Examples include:
- Employees utilizing personal Google Drive or Dropbox accounts for storing and sharing work documents.
- Teams registering 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 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 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 risk accidentally leaking sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: While IT departments routinely update approved software to address vulnerabilities, unauthorized applications often go unchecked, leaving systems vulnerable to attacks.
- Compliance Violations: If your business is 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 disguised as legitimate ones, which can contain malware or ransomware.
- Account Hijacking: Using 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 unauthorized applications is not malicious. For instance, the "Vapor" app scandal revealed a widespread ad fraud scheme where over 300 malicious applications were found 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 instances, phish for user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, crippling devices. This incident underscores how easily unauthorized applications can compromise security.
Employees may also resort to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They seek 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 have significant consequences 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 necessary since you cannot control what you cannot see. Here's how to begin:
1. Create An Approved Software List: Collaborate with your IT team to compile a list of trusted, secure applications for employee use, ensuring it 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 seek IT approval for any needed tools.
3. Educate Employees About The Risks: Employees must understand that Shadow IT poses security risks, not just productivity advantages. Regular training on the dangers of unauthorized apps is essential.
4. Monitor Network Traffic For Unapproved Apps: IT teams should utilize network-monitoring tools to identify unauthorized software use and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security: Employ endpoint detection and response solutions to monitor software usage, prevent unauthorized access, and detect suspicious activities 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.
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