May 26, 2025
Your employees may pose the greatest cybersecurity risk to your business, not only due to their tendency to click on phishing emails or reuse passwords, but also because they are utilizing 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 use unauthorized applications, software, and cloud services with good intentions, but this behavior inadvertently creates significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a business that has not received approval, vetting, or security measures from the IT department. This can include instances such as:
- Employees utilizing personal Google Drives or Dropbox accounts for storing and sharing work documents.
- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging apps like WhatsApp or Telegram on company devices for communication outside of official channels.
- Marketing teams using 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 intercept.
- No Security Updates: IT departments regularly update approved software to address vulnerabilities, but 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 malicious applications that seem legitimate but are actually designed to deliver malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication (MFA) can expose employee credentials, enabling hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the intent is not malicious. For instance, the "Vapor" app scandal recently uncovered by IAS Threat Labs revealed an extensive ad fraud scheme involving 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 concealed their icons and inundated users with full-screen ads, rendering devices nearly unusable. 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 and opt for 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
Addressing Shadow IT requires a proactive approach, as you cannot manage what you cannot see. 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 it is regularly updated with newly approved tools.
2. Restrict Unauthorized App Downloads: Implement device policies that prevent employees from installing unapproved software on company devices, requiring them to seek IT approval for necessary tools.
3. Educate Employees About The Risks: Employees must understand that Shadow IT is not merely a productivity shortcut but a significant security risk. Conduct regular training to inform your team about the dangers of unauthorized applications.
4. Monitor Network Traffic For Unapproved Apps: IT teams should utilize network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security: Employ 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.
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