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

Shadow IT – apps and tools employees use without IT approval – is one of the fastest-growing cybersecurity risks in business today. These well-intentioned shortcuts can lead to data breaches, compliance issues, and major vulnerabilities your IT team can’t see coming.

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Your employees might be the biggest cybersecurity risk in your business – and not just because they’re prone to click phishing emails or reuse passwords. It’s because they’re using apps your IT team doesn’t even know about.

This is called Shadow IT, and it’s one of the fastest-growing security risks for businesses today. Employees download and use unauthorized apps, software, and cloud services – often with good intentions – but in reality, they’re creating massive security vulnerabilities without even realizing it.

What Is Shadow IT?

Shadow IT refers to any technology used within a business that hasn’t been approved, vetted, or secured by the IT department. It can include things like:

  • 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 of official channels.
  • 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 can’t secure them – which means businesses are exposed to all kinds of threats.

  • Unsecured Data-Sharing – Personal cloud storage, email accounts, or messaging apps can leak sensitive information, making it easier for cybercriminals to intercept.
  • No Security Updates – IT updates approved software to patch vulnerabilities, but unauthorized apps often go unchecked.
  • Compliance Violations – Unapproved apps can lead to noncompliance with HIPAA, GDPR, PCI-DSS, and other regulations.
  • Increased Phishing and Malware Risks – Employees may download apps that look legitimate but contain malware.
  • Account Hijacking – Without multifactor authentication (MFA), unauthorized tools can expose employee credentials.

Why Do Employees Use Shadow IT?

Most of the time, it’s not malicious. Take, for example, the “Vapor” app scandal uncovered by IAS Threat Labs.

In March, over 300 malicious applications were found on the Google Play Store, downloaded more than 60 million times. These apps disguised themselves as utilities and health tools but were designed to show intrusive ads and phish for credentials and credit card information. Once installed, they hid their icons and flooded users with ads, rendering devices nearly unusable. This shows how easily unauthorized apps can infiltrate and compromise security.

But employees also use unauthorized apps because:

  • They find company-approved tools frustrating or outdated.
  • They want to work faster and more efficiently.
  • They don’t realize the security risks involved.
  • They think IT approval takes too long – so they take shortcuts.

Unfortunately, these shortcuts can cost your business BIG when a data breach happens.

How To Stop Shadow IT Before It Hurts Your Business

You can’t stop what you can’t see, so tackling Shadow IT requires a proactive approach. Here’s how to get started:

  • Create an Approved Software List – Work with IT to establish and regularly update a list of trusted, secure applications employees can use.
  • Restrict Unauthorized App Downloads – Use device policies that prevent employees from installing unapproved software without IT approval.
  • Educate Employees About the Risks – Help them understand that Shadow IT is a serious security issue, not just a productivity hack.
  • Monitor Network Traffic for Unapproved Apps – Use network monitoring tools to detect and flag unauthorized software usage.
  • Implement Strong Endpoint Security – Use EDR (Endpoint Detection and Response) tools to monitor, prevent, and respond to unauthorized activity.

Don’t Let Shadow IT Become a Security Nightmare

The best way to fight Shadow IT is to get ahead of it before it leads to a data breach or compliance disaster.

Want to know what unauthorized apps your employees are using right now? Start with a FREE Network Security Assessment. We’ll identify vulnerabilities, flag security risks, and help you lock down your business before it’s too late.

Click here to schedule your FREE Network Assessment today!

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