May 26, 2025
Your employees may pose the greatest cybersecurity threat to your business, not only because they might click on phishing emails or reuse passwords, but also due to their use of 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 utilize unauthorized applications, software, and cloud services, usually with the best intentions. However, this behavior can create significant security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology employed within a business that has not been approved, vetted, or secured by the IT department. This can include scenarios such as employees using personal Google Drive or Dropbox accounts for work-related document storage and sharing, teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight, workers installing messaging applications like WhatsApp or Telegram on company devices for external communication, and marketing teams utilizing 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 unauthorized tools means they cannot secure them, exposing businesses to various threats. Risks include unsecured data-sharing, where employees using personal cloud storage or messaging apps may inadvertently leak sensitive company information, making it easier for cybercriminals to access. Additionally, unauthorized applications often do not receive security updates, leaving systems vulnerable. Compliance violations can occur if businesses fall under regulations like HIPAA, GDPR, or PCI-DSS, as using unapproved apps can lead to noncompliance and legal issues. Furthermore, there is an increased risk of phishing and malware attacks, as employees may unknowingly download malicious apps disguised as legitimate ones. Lastly, using unauthorized tools without multifactor authentication can lead to account hijacking, exposing employee credentials to hackers.
Why Do Employees Use Shadow IT?
In many cases, employees do not act with malicious intent. For instance, the "Vapor" app scandal, which involved an extensive ad fraud scheme uncovered by IAS Threat Labs, illustrates this issue. In March, 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 bombarded users with full-screen ads, rendering devices nearly inoperative. This incident underscores how easily unauthorized apps can compromise security.
Employees may also resort to unauthorized apps for various reasons, including frustration with company-approved tools, a desire to work more efficiently, a lack of awareness about the security risks, and the perception that IT approval processes are too lengthy.
How To Stop Shadow IT Before It Hurts Your Business
Addressing Shadow IT requires a proactive strategy since you cannot manage what you cannot see. Here are some steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted and 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, requiring IT approval for any new tools.
3. Educate Employees About The Risks
It is essential for employees to understand that Shadow IT poses security risks, not just productivity shortcuts. Regular training should be conducted 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 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 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 issues.
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