Your employees could be the most significant cybersecurity threat to your business, not just because they may fall for phishing scams or reuse passwords, but because they are utilizing applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, which is rapidly becoming one of the most pressing security challenges for organizations today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this can inadvertently create significant security vulnerabilities.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not received approval, assessment, or security measures from the IT department. This can include:
- Employees storing and sharing work documents using personal Google Drives or Dropbox accounts.
- Teams signing up for unapproved project management tools such as Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications like WhatsApp or Telegram on company devices for communication beyond official channels.
- Marketing teams employing AI content generators or automation tools without verifying their security.
Why Is Shadow IT So Dangerous?
The lack of visibility and control over these tools means that IT teams cannot secure them, leaving businesses vulnerable to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps may inadvertently expose sensitive company information, making it easier for cybercriminals to access.
- No Security Updates: While IT departments routinely update approved software to address vulnerabilities, unauthorized applications often remain unchecked, leaving systems exposed to hackers.
- Compliance Violations: Businesses governed by regulations such as HIPAA, GDPR, or PCI-DSS risk noncompliance, fines, and legal issues by using unapproved applications.
- Increased Phishing And Malware Risks: Employees may unknowingly download malicious applications that seem legitimate but are designed to install malware or ransomware.
- Account Hijacking: Utilizing unauthorized tools without multifactor authentication (MFA) can compromise employee credentials, allowing hackers access to company systems.
Why Do Employees Use Shadow IT?
In most cases, employees do not act with malicious intent. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme involving over 300 malicious applications on the Google Play Store, downloaded more than 60 million times. These apps masqueraded as utilities and lifestyle tools but were designed to display intrusive ads and phish for user credentials and credit card information. Once installed, they concealed their icons and overwhelmed 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 cumbersome or outdated.
- They aim to work more efficiently.
- They are unaware of the associated security risks.
- They perceive IT approval processes as too slow, leading them to take shortcuts.
Regrettably, 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 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 compile a list of trusted, secure applications that employees can use, ensuring that 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. They should seek IT approval before acquiring any tools.
3. Educate Employees About The Risks
It is crucial for employees to recognize that Shadow IT poses security risks beyond just productivity shortcuts. Conduct regular training 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 track 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 proactively address it before it leads to a data breach or compliance issue.
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