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

May 26, 2025

Your employees might be the biggest cybersecurity risk in your business, and not just because they are prone to clicking phishing emails or reusing passwords. The real risk comes from their use of apps that your IT team doesn't even know about.

This phenomenon is called Shadow IT, and it is one of the fastest-growing security threats for businesses today. Employees download and use unauthorized apps, software, and cloud services—often with good intentions—but in doing so, they create significant security vulnerabilities without realizing it.

What Is Shadow IT?

Shadow IT refers to any technology used within a business 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 like Trello, Asana, or Slack without IT oversight, workers installing messaging apps like WhatsApp or Telegram on company devices to communicate outside official channels, and 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 cannot secure them, leaving businesses exposed to various threats. These include unsecured data sharing, where employees using personal cloud storage, email accounts, or messaging apps can accidentally leak sensitive information, making it easier for cybercriminals to intercept data; lack of security updates, as unauthorized apps often go unchecked and unpatched, leaving systems vulnerable; compliance violations, since using unapproved apps can result in noncompliance with regulations like HIPAA, GDPR, or PCI-DSS, leading to fines and legal issues; increased phishing and malware risks, as employees might unknowingly download malicious apps disguised as legitimate ones; and account hijacking, because unauthorized tools often lack multifactor authentication, exposing employee credentials to hackers.

Why Do Employees Use Shadow IT?

Most of the time, the use of Shadow IT is not malicious. For example, the "Vapor" app scandal revealed how over 300 malicious apps on the Google Play Store, downloaded more than 60 million times, disguised themselves as utilities and lifestyle tools but actually displayed intrusive ads and phished for user credentials. This incident shows how easily unauthorized apps can infiltrate devices and compromise security.

Employees also turn to unauthorized apps because they find company-approved tools frustrating or outdated, want to work faster and more efficiently, don't realize the security risks, or believe that IT approval takes too long and therefore take shortcuts. Unfortunately, these shortcuts can lead to costly data breaches.

How To Stop Shadow IT Before It Hurts Your Business

You cannot stop what you cannot see, so addressing Shadow IT requires a proactive approach. Start by creating an approved software list in collaboration with your IT team, ensuring it is regularly updated. Next, restrict unauthorized app downloads by setting device policies that prevent employees from installing unapproved software; require IT approval for any new tools. Educate employees about the risks by providing regular training to help them understand that Shadow IT is a security risk, not just a productivity shortcut. Monitor network traffic for unapproved apps using network-monitoring tools to detect unauthorized software use and flag potential threats early. Finally, implement strong endpoint security with endpoint detection and response (EDR) solutions to track software usage, prevent unauthorized access, and detect suspicious activity in real time.

Don't Let Shadow IT Become A Security Nightmare

The best way to combat Shadow IT is to anticipate it and take action before it results in a data breach or compliance disaster.

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