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

Your employees could represent the greatest cybersecurity threat to your business, not only due to their tendency to click on phishing emails or reuse passwords, but also because they are using applications that your IT department is unaware of.

This phenomenon is known as Shadow IT, and it is rapidly becoming one of the most significant security threats for organizations today. Employees often download and utilize unauthorized applications, software, and cloud services with good intentions, but this can inadvertently create substantial security vulnerabilities.

What Is Shadow IT?

Shadow IT encompasses any technology employed within a business that has not been approved, vetted, or secured by the IT department. Examples include:

- Employees using personal Google Drives 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 oversight.

- Workers installing messaging apps like WhatsApp or Telegram on company devices for communication outside official channels.

- Marketing teams utilizing 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, exposing businesses to various threats, such as:

- 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: While IT departments regularly update approved software to fix vulnerabilities, unauthorized apps often go unchecked, leaving systems vulnerable 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 ones that contain malware or ransomware.

- Account Hijacking: Using unauthorized tools without multifactor authentication can expose employee credentials, allowing 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 a significant ad fraud scheme where 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 hid their icons and inundated users with full-screen ads, making devices nearly inoperative. This incident underscores how unauthorized apps can easily compromise security.

Employees may also resort 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 IT approval takes too long and opt for 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

Addressing Shadow IT requires a proactive approach since you cannot manage what you cannot see. Here are steps to get started:

1. Create An Approved Software List

Collaborate with your IT team to develop a list of trusted and 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. Employees should request IT approval if they need a tool.

3. Educate Employees About The Risks

Employees must understand that Shadow IT is not merely a productivity shortcut; it poses a security risk. Regular training should be provided to explain why unauthorized apps can jeopardize the business.

4. Monitor Network Traffic For Unapproved Apps

IT teams should employ network-monitoring tools to detect unauthorized software usage and identify potential security threats before they escalate.

5. Implement Strong Endpoint Security

Utilize endpoint detection and response 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 crisis.

Want to know what unauthorized apps your employees are using right now? Start with a FREE Initial Consultation. 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 312-564-5446 to schedule your FREE Initial Consultation today!