May 26, 2025
Your employees could be the biggest cybersecurity risk in your business—not just because they might click on phishing emails or reuse passwords, but because they are using apps your IT team doesn't even know about.
This phenomenon is known as Shadow IT, and it is one of the fastest-growing security risks for businesses today. Employees often download and use unauthorized apps, software, and cloud services with good intentions, but in doing so, they create significant security vulnerabilities without realizing it.
What Is Shadow IT?
Shadow IT refers to any technology used within a business 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. These include:
- Unsecured Data-Sharing: Use of personal cloud storage, email accounts, or messaging apps can lead to accidental leaks of sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: Approved software is regularly updated by IT to patch vulnerabilities, but unauthorized apps often remain unchecked, exposing systems to hackers.
- Compliance Violations: For businesses regulated by standards like HIPAA, GDPR, or PCI-DSS, using unapproved apps can result in noncompliance, fines, and legal issues.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious apps that look legitimate but contain malware or ransomware.
- Account Hijacking: Unauthorized tools without multifactor authentication can expose employee credentials, allowing hackers access to company systems.
Why Do Employees Use Shadow IT?
Most of the time, the use of Shadow IT is not malicious. For example, the "Vapor" app scandal revealed how over 300 malicious applications disguised as utilities and lifestyle tools were downloaded more than 60 million times from the Google Play Store. These apps displayed intrusive ads, phished for credentials and credit card information, hid their icons, and severely disrupted device functionality. This incident shows how unauthorized apps can easily infiltrate devices and compromise security.
Employees also turn to unauthorized apps because:
- They find company-approved tools frustrating or outdated.
- They want to work faster and more efficiently.
- They don't realize the security risks involved.
- They believe IT approval takes too long, so they take shortcuts.
Unfortunately, these shortcuts can lead to costly data breaches.
How To Stop Shadow IT Before It Hurts Your Business
Since you can't stop what you can't see, addressing Shadow IT requires a proactive strategy. Start by:
1. Creating an Approved Software List: Collaborate with your IT team to establish and regularly update a list of trusted and secure applications employees are allowed to use.
2. Restricting Unauthorized App Downloads: Implement device policies that prevent installation of unapproved software on company devices. Employees should request IT approval before using new tools.
3. Educating Employees About the Risks: Train your team regularly to understand that Shadow IT is not just a productivity shortcut but a serious security risk.
4. Monitoring Network Traffic for Unapproved Apps: Use network-monitoring tools to detect unauthorized software use and identify potential security threats early.
5. Implementing Strong Endpoint Security: Deploy endpoint detection and response (EDR) solutions to track software usage, block unauthorized access, and detect suspicious activity in real time.
Don't Let Shadow IT Become A Security Nightmare
The best way to combat Shadow IT is to address it proactively before it leads to data breaches or compliance failures.
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