Your employees may pose the greatest cybersecurity risk to your business, not just because they might click on phishing emails or reuse passwords, but because they are using applications that your IT team is unaware of. This phenomenon is known as Shadow IT, and it is rapidly becoming one of the most significant security threats for organizations today. Employees often download and utilize unauthorized applications, software, and cloud services with the best intentions, but this practice can create substantial security vulnerabilities without their knowledge.
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 utilizing personal Google Drives or Dropbox accounts for storing and sharing work documents.
- Teams enrolling in unapproved project management platforms like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like WhatsApp or Telegram on company devices to communicate outside of official channels.
- Marketing teams employing AI content generators or automation tools without confirming their security.
Why Is Shadow IT So Dangerous?
The risks associated with Shadow IT arise from the lack of visibility and control that IT teams have over these tools, making it impossible to secure them and exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps can inadvertently disclose sensitive company information, making it easier for cybercriminals to intercept.
- No Security Updates: IT departments routinely update approved software to address vulnerabilities, but unauthorized applications often remain unchecked, leaving systems vulnerable to hackers.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS may face noncompliance, fines, and legal issues due to the use of unapproved applications.
- Increased Phishing And Malware Risks: Employees may unknowingly download malicious applications that appear legitimate but contain malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication (MFA) can expose employee credentials, allowing hackers to access company systems.
Why Do Employees Use Shadow IT?
In most cases, the use of Shadow IT is not malicious. 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 instances, phish for user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, making devices nearly unusable. This incident underscores how easily unauthorized applications can infiltrate devices and jeopardize security.
Employees may also resort to unauthorized applications because:
- They find company-approved tools frustrating or outdated.
- They aim 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 result in significant costs for your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
Addressing Shadow IT requires a proactive approach since you cannot manage what you cannot see. Here are steps to consider:
1. Create An Approved Software List: Collaborate with your IT team to compile a list of trusted, 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. They should request 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 significant security risk. 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 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 (EDR) 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 crisis.
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