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

Your employees might be the biggest cybersecurity risk in your business – and not just because they’re prone to click phishing emails or reuse passwords. It’s because they’re using apps your IT team doesn’t even know about.

This is called Shadow IT, and it’s one of the fastest-growing security risks for businesses today. Employees download and use unauthorized apps, software, and cloud services – often with good intentions – but in reality, they’re creating massive security vulnerabilities without even realizing it.

What Is Shadow IT?

Shadow IT refers to any technology used within a business that hasn’t been approved, vetted, or secured by the IT department. It can include things like:

• Employees using personal Google Drive or Dropbox accounts to store and share work documents.
• Teams signing up for unapproved project management tools like Trello, Asana, or Slack without IT oversight.
• Workers installing messaging apps like WhatsApp or Telegram on company devices to communicate outside of official channels.
• Marketing teams using AI content generators or automation tools without verifying their security.

Why Is Shadow IT So Dangerous?

Because IT teams have no visibility or control over these tools, they can’t secure them – which means businesses are exposed to all kinds of threats:

• Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps can accidentally leak sensitive company information, making it easier for cybercriminals to intercept.
• No Security Updates: IT departments regularly update approved software to patch vulnerabilities, but unauthorized apps often go unchecked, leaving systems open to hackers.
• Compliance Violations: If your business falls under regulations like HIPAA, GDPR, or PCI-DSS, using unapproved apps can lead to noncompliance, fines, and legal trouble.
• Increased Phishing and Malware Risks: Employees might unknowingly download malicious apps that appear legitimate but contain malware or ransomware.
• Account Hijacking: Using unauthorized tools without multifactor authentication (MFA) can expose employee credentials, allowing hackers to gain access to company systems.

Why Do Employees Use Shadow IT?

Most of the time, it’s not malicious. Take, for example, the “Vapor” app scandal, an extensive ad fraud scheme recently uncovered by security researchers IAS Threat Labs.

In March, over 300 malicious applications were discovered on the Google Play Store, collectively downloaded more than 60 million times. These apps disguised themselves as utilities and health and lifestyle tools but were designed to display intrusive ads and, in some cases, phish for user credentials and credit card information. Once installed, they hid their icons and bombarded users with full-screen ads, rendering devices nearly inoperative.

This incident highlights how easily unauthorized apps can infiltrate devices and compromise security.

But employees can also use unauthorized apps because:

• They find company-approved tools frustrating or outdated.
• They want to work faster and more efficiently.
• They don’t realize the security risks involved.
• They think IT approval takes too long – so they take shortcuts.

Unfortunately, these shortcuts can cost your business BIG when a data breach happens.

How To Stop Shadow IT Before It Hurts Your Business

You can’t stop what you can’t see, so tackling Shadow IT requires a proactive approach. Here’s how to get started:

1. Create an Approved Software List

Work with your IT team to establish a list of trusted, secure applications employees can use. Make sure this list is regularly updated.

2. Restrict Unauthorized App Downloads

Set up device policies that prevent employees from installing unapproved software on company devices. If they need a tool, they should request IT approval first.

3. Educate Employees About the Risks

Employees need to understand that Shadow IT isn’t just a productivity shortcut – it’s a security risk. Regularly train your team on why unauthorized apps can put the business at risk.

4. Monitor Network Traffic for Unapproved Apps

IT teams should use network-monitoring tools to detect unauthorized software use and flag potential security threats before they become a problem.

5. Implement Strong Endpoint Security

Use endpoint detection and response (EDR) solutions to track software usage, prevent unauthorized access, and detect any suspicious activity in real time.

Don’t Let Shadow IT Become a Security Nightmare

The best way to fight Shadow IT is to get ahead of it before it leads to a data breach or compliance disaster.

Want to know what unauthorized apps your employees are using right now? Start with a FREE Network Security Assessment. We’ll identify vulnerabilities, flag security risks, and help you lock down your business before it’s too late.

Click here to schedule your FREE Network Assessment today!

‍