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

Your employees might pose the greatest cybersecurity threat to your business, not just because they may fall for 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 represents one of the most rapidly growing security threats for organizations today. Employees often download and utilize unauthorized applications, software, and cloud services, usually with good intentions, but 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-related documents.

- Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT's knowledge.

- Workers installing messaging applications such as 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 using personal cloud storage, email accounts, or messaging apps can 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 go unchecked, leaving systems vulnerable to hackers.

- Compliance Violations: If your business is subject to regulations like HIPAA, GDPR, or PCI-DSS, using unapproved apps can lead to noncompliance, resulting in fines and legal issues.

- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that seem 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 recent "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, disguised as utilities and health tools, 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, crippling devices. This incident underscores how easily unauthorized applications can compromise security.

Employees may also resort to unauthorized apps because:

- They find company-approved tools frustrating or outdated.

- They seek to work faster and more 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

To address Shadow IT, a proactive approach is essential. 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. Ensure this list is regularly updated with newly approved tools.

2. Restrict Unauthorized App Downloads

Establish device policies that prevent employees from installing unapproved software on company devices. They should request IT approval for any needed tools.

3. Educate Employees About The Risks

Employees must understand that Shadow IT is not merely a productivity shortcut but a security risk. Provide regular training on the dangers posed by unauthorized apps.

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

Adopt endpoint detection and response (EDR) solutions to monitor software usage, prevent unauthorized access, and detect suspicious activities 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.

Want to know what unauthorized apps your employees are using right now? Start with a FREE 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 (802) 331-1900 to schedule your FREE Discovery Call today!