Your employees may represent the most significant cybersecurity threat to your organization, not merely due to their susceptibility to phishing emails or password reuse, but because they are utilizing applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it is rapidly emerging as a major security concern for businesses today. Employees often download and use unauthorized applications, software, and cloud services, typically with good intentions, but this behavior can create substantial security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology utilized within a business that has not received approval, evaluation, or security measures from 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 platforms like Trello, Asana, or Slack without IT oversight.
- Workers installing messaging applications such as WhatsApp or Telegram on company devices for communication outside of 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 that IT teams have over these tools means they cannot secure them, exposing businesses to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps may inadvertently leak 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: For businesses governed by regulations such as HIPAA, GDPR, or PCI-DSS, utilizing unapproved applications can result in noncompliance, leading to fines and legal issues.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious applications that appear legitimate but harbor malware or ransomware.
- Account Hijacking: Using 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, employees do not act with malicious intent. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme recently uncovered by security researchers at IAS Threat Labs.
In March, over 300 malicious applications were identified on the Google Play Store, collectively downloaded more than 60 million times. These apps masqueraded as utilities and health and lifestyle tools but were designed to display intrusive ads and, in some instances, to phish for user credentials and credit card information. Once installed, they concealed their icons and inundated users with full-screen ads, rendering devices nearly inoperative. This incident underscores how easily unauthorized applications can infiltrate devices and jeopardize security.
Employees may also turn to unauthorized apps 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 that obtaining IT approval takes too long, prompting them to take shortcuts.
Unfortunately, these shortcuts can have significant consequences for your business in the event of a data breach.
How To Stop Shadow IT Before It Hurts Your Business
To address Shadow IT effectively, you need 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 develop 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. If a tool is needed, they should seek IT approval first.
3. Educate Employees About The Risks
Employees must understand that Shadow IT is not merely a productivity shortcut but a genuine security risk. Provide regular training on why unauthorized applications can jeopardize the business.
4. Monitor Network Traffic For Unapproved Apps
IT teams should utilize network-monitoring tools to identify unauthorized software use and flag potential security threats before they escalate.
5. Implement Strong Endpoint Security
Employ endpoint detection and response (EDR) solutions to monitor software usage, prevent unauthorized access, and detect any 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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