Shadow IT Explained: Risks, Causes, and Fixes

 

When discussing cybersecurity risks in the workplace, employees are often the focus. Yes, phishing scams and reused passwords are serious issues—but there’s another growing risk that flies under the radar: Shadow IT.

Shadow IT happens when employees use apps, software, or cloud services that haven’t been approved—or even seen—by your IT team. These tools may boost productivity in the short term. Still, they create serious security vulnerabilities that your business can’t afford to ignore.

What Is Shadow IT?

Shadow IT refers to any technology that the IT department doesn’t explicitly authorize. It might include:

  • Using personal Dropbox or Google Drive accounts for file storage
  • Signing up for Trello, Asana, or Slack without IT approval
  • Installing WhatsApp or Telegram on company devices
  • Leveraging AI tools for content generation or automation outside of secure workflows

These tools are often downloaded with the best intentions—to work faster, stay organized, or collaborate more efficiently—but they can open the door to significant risks without proper oversight.

Why Shadow IT Poses a Real Threat

When IT doesn’t know what tools are in use, it can’t secure them. That opens the door to:

  • Data leaks via personal cloud accounts or messaging apps
  • Outdated software with unpatched vulnerabilities
  • Compliance issues with regulations like HIPAA, GDPR, or PCI-DSS
  • Phishing and malware attacks through malicious app downloads
  • Credential theft occurs when MFA and security protocols are skipped

A recent example: In March, researchers uncovered a large-scale ad fraud scheme involving over 300 malicious apps on the Google Play Store. These apps—downloaded over 60 million times—disguised themselves as harmless utilities but bombarded users with ads and, in some cases, stole credentials or credit card data. Incidents like this underscore how easily unapproved apps can undermine your security.

Why Employees Turn to Shadow IT

The issue isn’t usually malicious behavior. In most cases, employees resort to unapproved tools because:

  • They find company-approved options slow or clunky
  • They’re trying to be more efficient
  • They don’t realize the risks
  • They feel IT approval processes take too long

It’s often a shortcut born from frustration, but shortcuts in cybersecurity rarely end well.

How to Proactively Address Shadow IT

You can’t secure what you can’t see. Here are five ways to reduce the risks of Shadow IT:

1. Maintain an Approved Software List

Work with your IT team to provide an updated list of safe, approved employee tools.

2. Restrict Unauthorized Downloads

Set device policies that prevent installing unapproved apps and give employees a straightforward process for requesting new tools.

3. Educate Employees on the Risks

Regular security awareness training can help your team understand why these apps are risky, even when they seem harmless.

4. Monitor for Unapproved Tools

Use network monitoring to detect and flag unauthorized app usage. Early detection means fewer surprises.

5. Strengthen Endpoint Security

Use Endpoint Detection and Response (EDR) tools to track software behavior, block unauthorized access, and flag suspicious activity in real-time.

Stay Ahead of the Risks

Shadow IT isn’t going away—but you can get ahead of it before it leads to a data breach, system compromise, or compliance fine.

Want to know what unauthorized apps might already be running in your environment?

Start with a free Network Security Assessment. We’ll help you identify potential vulnerabilities and offer solutions to lock things down, without slowing your team down.