Your employees could be the greatest cybersecurity threat to your organization, not only due to their tendency to click on phishing emails or reuse passwords but also because they are utilizing applications that your IT department is unaware of.
This phenomenon is known as Shadow IT, and it represents one of the most rapidly escalating security threats for businesses today. Employees often download and use unauthorized applications, software, and cloud services with good intentions, but this behavior can create significant security vulnerabilities without their knowledge.
What Is Shadow IT?
Shadow IT encompasses any technology used within a company 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 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 outside of 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 that IT teams have over these tools means they cannot secure them, leaving businesses vulnerable to various threats.
- Unsecured Data-Sharing: Employees using personal cloud storage, email accounts, or messaging apps risk accidentally leaking 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, exposing systems to hackers.
- Compliance Violations: Businesses subject to regulations like HIPAA, GDPR, or PCI-DSS may face noncompliance, fines, and legal issues by using unapproved apps.
- Increased Phishing and Malware Risks: Employees may unknowingly download malicious apps disguised as legitimate, which could contain malware or ransomware.
- Account Hijacking: Unauthorized tools that lack multifactor authentication (MFA) can expose employee credentials, granting hackers access to company systems.
Why Do Employees Use Shadow IT?
Typically, the motivations are not malicious. For instance, the "Vapor" app scandal revealed an extensive ad fraud scheme with over 300 malicious applications on the Google Play Store, collectively downloaded more than 60 million times. These apps masqueraded as utilities and lifestyle tools but were designed to display intrusive ads and, in some cases, steal user credentials and credit card information. Once installed, they concealed their icons and overwhelmed users with full-screen ads, rendering devices nearly inoperative. This incident underscores how easily unauthorized apps can compromise security.
Employees may also resort 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 that obtaining IT approval takes too long, prompting them to take shortcuts.
Unfortunately, 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
Since you cannot manage what you cannot see, addressing Shadow IT requires a proactive strategy. Here are steps to get started:
1. Create An Approved Software List: Collaborate with your IT team to compile a list of trusted, secure applications for employees. 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 seek IT approval before acquiring any tools.
3. Educate Employees About The Risks: Employees must understand that Shadow IT is not merely a productivity shortcut but a significant security risk. Provide regular training 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: Employ 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 address it proactively before it leads to a data breach or compliance crisis.
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