May 26, 2025
Your employees may represent the greatest cybersecurity threat to your business, and it's not only because they might click on phishing emails or reuse passwords. The real issue is that they are using applications your IT team isn't even aware of.
This phenomenon is known as Shadow IT, and it is one of the fastest-growing security risks facing businesses today. Employees often download and use unauthorized apps, software, and cloud services with good intentions, but in doing so, they unknowingly create significant security vulnerabilities.
What Is Shadow IT?
Shadow IT refers to any technology used within a company 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 files.
- Teams adopting unapproved project management tools like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging apps such as WhatsApp or Telegram on company devices to communicate outside official channels.
- Marketing teams using AI content generators or automation tools without verifying their security.
Why Is Shadow IT So Dangerous?
Because IT teams lack visibility and control over these tools, they cannot secure them, exposing businesses to various threats:
- Unsecured Data Sharing: Using personal cloud storage, email accounts, or messaging apps can lead to accidental leaks of sensitive company information, making it easier for cybercriminals to intercept it.
- Lack of Security Updates: IT departments regularly patch approved software to fix vulnerabilities, but unauthorized apps often remain unchecked, leaving systems open to attacks.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues when unapproved apps are used.
- Increased Phishing and Malware Risks: Employees might unknowingly install malicious apps disguised as legitimate ones, which can contain malware or ransomware.
- Account Hijacking: Using unauthorized tools without multifactor authentication (MFA) can expose employee credentials, allowing hackers access to company systems.
Why Do Employees Use Shadow IT?
Usually, it's not out of malice. For example, consider the "Vapor" app scandal uncovered by IAS Threat Labs, where over 300 malicious apps on the Google Play Store were downloaded more than 60 million times. These apps posed as utilities or lifestyle tools but actually displayed intrusive ads and sometimes phished for credentials and credit card data. They hid their icons and bombarded users with full-screen ads, making devices nearly unusable. This case shows how easily unauthorized apps can infiltrate devices and compromise security.
Employees also turn to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They want to work more quickly and efficiently.
- They are unaware of the security risks involved.
- They believe IT approval processes take too long and therefore take shortcuts.
Unfortunately, these shortcuts can lead to costly data breaches.
How To Stop Shadow IT Before It Hurts Your Business
You can't stop what you don't see, so addressing Shadow IT requires a proactive approach. Start with these steps:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted and secure applications employees are allowed to use. Keep this list updated regularly.
2. Restrict Unauthorized App Downloads
Implement device policies that prevent employees from installing unapproved software on company devices. Require IT approval for any new tools.
3. Educate Employees About The Risks
Make sure employees understand that Shadow IT is not just about productivity shortcuts but also a serious security risk. Provide regular training on the dangers of unauthorized app use.
4. Monitor Network Traffic For Unapproved Apps
Use network monitoring tools to detect unauthorized software and flag potential security threats early.
5. Implement Strong Endpoint Security
Deploy endpoint detection and response (EDR) solutions to monitor software usage, block unauthorized access, and detect suspicious activity in real time.
Don't Let Shadow IT Become A Security Nightmare
The best defense against Shadow IT is to get ahead of it before it causes a data breach or compliance failure.
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