Your employees could be your greatest cybersecurity vulnerability, not just due to their tendency to click on phishing emails or reuse passwords, but because they are using applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the fastest-growing security threats for businesses today. Employees often download and utilize unauthorized applications, software, and cloud services—typically with good intentions—but they inadvertently create significant security risks.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not been approved, vetted, or secured by the IT department. Examples include:
- Employees storing and sharing work documents via personal Google Drive or Dropbox accounts.
- Teams signing up for unapproved project management tools such as Trello, Asana, or Slack without IT oversight.
- Workers installing messaging apps like WhatsApp or Telegram on company devices for communication outside official channels.
- Marketing teams employing 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. Key concerns include:
- Unsecured Data Sharing: Employees using personal cloud storage or messaging apps may inadvertently leak sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: While IT departments regularly update approved software to address vulnerabilities, unauthorized apps often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: For businesses subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved applications can result in noncompliance, fines, and legal issues.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious apps that seem legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
Typically, employees do not act with malicious intent. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme where 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 cases, phish for user credentials and credit card information. Once installed, they concealed their icons and overwhelmed users with full-screen ads, crippling devices. This incident underscores how easily unauthorized apps 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, leading them to take shortcuts.
Unfortunately, these shortcuts can have significant repercussions for your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
To address Shadow IT effectively, a proactive approach is essential. Here are some steps to consider:
1. Create An Approved Software List
Collaborate with your IT team to develop a list of trusted, secure applications for employees to use. Ensure this list is regularly updated with new, approved tools.
2. Restrict Unauthorized App Downloads
Establish device policies that prevent employees from installing unapproved software on company devices. Employees should be required to seek IT approval for any necessary tools.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut but a genuine security threat. Conduct regular training sessions to explain the risks associated with unauthorized apps.
4. Monitor Network Traffic For Unapproved Apps
IT teams should employ network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security
Utilize 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 leads to a data breach or compliance issue.
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