Shadow IT: How Employees Using Unauthorized Apps Could Be Putting Your Business At Risk

Your employees could be your organization's greatest cybersecurity threat, and it's not solely due to their tendency to click on phishing emails or reuse passwords. The real issue lies in their use of applications that your IT department is unaware of.

This phenomenon is known as Shadow IT, and it represents one of the most rapidly expanding security risks for businesses today. Employees often download and utilize unauthorized applications, software, and cloud services—usually with good intentions—yet they inadvertently create significant security vulnerabilities.

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 using personal Google Drive or Dropbox accounts to store and share work documents.

- Teams subscribing to unapproved project management tools like Trello, Asana, or Slack without IT oversight.

- Workers installing messaging applications 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 over these tools means IT teams cannot secure them, exposing businesses to various threats.

- Unsecured Data-Sharing: Employees utilizing personal cloud storage, email accounts, 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 applications often remain unchecked, leaving systems vulnerable to hackers.

- Compliance Violations: If your business is 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 applications that seem legitimate but harbor malware or ransomware.

- Account Hijacking: Utilizing unauthorized tools without multifactor authentication (MFA) can expose employee credentials, enabling hackers to access company systems.

Why Do Employees Use Shadow IT?

In most cases, the use of unauthorized applications is not malicious. A recent example is the "Vapor" app scandal, which revealed an extensive ad fraud scheme uncovered by IAS Threat Labs researchers.

In March, 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 inundated users with full-screen ads, nearly crippling devices. This incident underscores how unauthorized apps can infiltrate devices and threaten security.

Employees may also turn to unauthorized applications 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 obtaining IT approval takes too long, prompting them to take shortcuts.

Unfortunately, these shortcuts can lead to significant costs for your business in the event of a data breach.

How To Stop Shadow IT Before It Hurts Your Business

Since you can't address what you can't see, dealing with Shadow IT necessitates a proactive approach. Here are some steps to take:

1. Create An Approved Software List: Collaborate with your IT team to compile a list of trusted, secure applications for employee use. Ensure this list 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 security risk. Conduct regular training sessions on the dangers posed by unauthorized applications.

4. Monitor Network Traffic For Unapproved Apps: IT teams should utilize network-monitoring tools to identify unauthorized software usage and flag potential security threats before they escalate.

5. Implement Strong Endpoint Security: Deploy 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 proactively address it before it results in a data breach or compliance failure.

Want to know what unauthorized apps your employees are using right now? Start with a FREE 15-Minute Discovery Call. We'll identify vulnerabilities, flag security risks and help you lock down your business before it's too late.

Click here or give us a call at (949) 396-1100 to schedule your FREE 15-Minute Discovery Call today!