May 26, 2025
Your employees might pose the greatest cybersecurity risk to your business—not only because they might click on phishing emails or reuse passwords, but also because they use apps that your IT team isn't aware 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 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 documents.
- Teams signing up for 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, leaving businesses vulnerable to various threats:
- Unsecured Data Sharing: Employees using personal cloud storage, email accounts, or messaging apps may accidentally expose sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: IT departments regularly update approved software to fix vulnerabilities, but unauthorized apps often go unchecked, leaving systems open to attacks.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved apps can result in noncompliance, fines, and legal issues.
- Increased Phishing and Malware Risks: Employees might unknowingly install malicious apps disguised as legitimate ones that contain 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?
Usually, it's not out of malice. For example, the recent "Vapor" app scandal revealed an extensive ad fraud operation uncovered by IAS Threat Labs. In March, over 300 malicious apps were found on the Google Play Store, collectively downloaded more than 60 million times. These apps posed as utilities and health or lifestyle tools but were designed to display intrusive ads and, in some cases, phish for user credentials and credit card data. Once installed, they hid their icons and overwhelmed devices with full-screen ads, making them nearly unusable. This incident shows how easily unauthorized apps can infiltrate devices and threaten security.
Employees may also use unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They want to work faster and more efficiently.
- They are unaware of the security risks involved.
- They believe IT approval takes too long and choose to bypass it.
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 can't see, so addressing Shadow IT requires a proactive approach. Here's how to begin:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications employees are allowed to use. Keep this list updated regularly with new approved tools.
2. Restrict Unauthorized App Downloads
Implement device policies that prevent employees from installing unapproved software on company devices. Require them to seek IT approval before using new tools.
3. Educate Employees About The Risks
Make sure employees understand that Shadow IT isn't just a shortcut for productivity but a serious security risk. Provide regular training on why unauthorized apps can endanger the business.
4. Monitor Network Traffic For Unapproved Apps
Use network monitoring tools to detect unauthorized software usage and identify potential security threats before they escalate.
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 address it proactively before it results in a data breach or compliance failure.
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