Uncovering Hidden Risks in Your Business
Have you ever wondered how much of your company’s technology usage is slipping under the radar? It might be more than you think. In fact, 80% of employees admit to using unauthorized apps, devices, or software, according to Cisco.
This phenomenon, known as shadow IT, is more common—and more dangerous—than most businesses realize.
Shadow IT refers to the use of technology within a company that is not officially approved or monitored by the IT department, cybersecurity team, or managed service provider (MSP). It could be as simple as an employee using a personal cloud storage service to share files or as complex as entire departments adopting new software without proper vetting. Even authorized tools can turn into shadow IT if they’re being used in ways that aren’t approved.
At its core, shadow IT involves unsanctioned technology assets that live outside your company’s radar, posing severe risks to security and compliance. In this blog, we’ll dive deeper into the secretive world of shadow IT to better understand its risk and how you can help protect your business.
What Is Considered Shadow IT?
Shadow IT covers any hardware, software, or cloud services—basically any technology—that’s used by employees of an organization without the knowledge or approval of its IT or cybersecurity team. It encompasses a wide range of unauthorized tools and platforms that can sneak into daily workflows unnoticed, creating potential risks for the business.
Some common examples of shadow IT include:
- Personal File Storage. Using personal accounts like Dropbox or Google Drive to share business files.
- Unauthorized Video Conferencing. Hosting meetings and sharing files on unapproved platforms instead of the company’s designated tools.
- Messaging and Productivity. Employing unvetted applications for communications and task management that your IT team hasn’t reviewed.
- Hardware. Personal laptops, smartphones, tablets, and other connected devices.
- Software. Applications purchased by individual employees or departments.
- Cloud Services. Platforms, including Software as a Service (SaaS) applications, that are accessed without IT oversight.
- AI Tools and Services. Utilizing AI-powered applications or platforms, such as ChatGPT or image generators, without approval may pose data privacy and security risks.
5 Risks Posed by Shadow IT
The more unmanaged technology in your organization, the more vulnerable you become to security threats.
1. Increased Attack Surface
The more rogue devices, software, and services that exist in your network, the more opportunities hackers have to strike. If your IT team isn’t aware of these shadow IT tools, they can’t defend them, leaving your business dangerously exposed to cyberattacks. A cybersecurity risk assessment can help you determine your current risk level.
2. Security Gaps
Your IT department can’t secure what it doesn’t know exists. By using shadow IT, employees unintentionally bypass your company’s entire cybersecurity strategy. While some applications may seem harmless, others, especially file-sharing or collaboration tools, can introduce critical vulnerabilities that go undetected.
3. Data Insecurity
Sensitive business data can easily be compromised through shadow IT apps and devices. When information is stored across unapproved platforms, it becomes impossible to maintain centralized control. Employees could be working with outdated or incorrect data, further complicating operational efficiency and decision-making.
4. Compliance Issues
Shadow IT often leads to noncompliance with industry regulations and security standards. When employees or departments use unauthorized solutions, these systems may not meet the required data security measures. This could result in fines, penalties, or even legal actions if sensitive information is mishandled.
5. Remote Work and Cloud Computing
The rise of remote work and cloud-based solutions has only intensified the shadow IT problem. Employees working from home might use personal devices or unapproved cloud services, making it harder for your IT team to maintain security oversight. While these tools may offer convenience, they introduce serious risks to your organization’s overall cybersecurity posture. Click here to learn more about securing remote workplaces.
Why Do Employees Use Shadow IT?
Shadow IT comes with significant risks, but it’s not usually driven by ill intent. Employees often turn to unsanctioned tools because they are easy to use and cost-effective.
Employees likely don’t understand the potential harm they’re introducing when they begin using a new, unvetted technology tool to solve a problem quickly. Educating your business’s employees is a critical step towards reducing the risks of shadow IT.
How To Limit Shadow IT Risks
Even though shadow IT is common, there are strategies you can implement to reduce its risks and protect your organization’s security.
Have a Clear IT Policy
Your organization should have a clear policy that outlines how new technology should be adopted, approved, and managed. This policy will help employees understand the process for introducing new tools and hold them accountable for following proper procedures.
Provide a Guest Network
Offer a separate network for personal devices and guests. This reduces the likelihood of unvetted devices connecting to your main business network, helping to limit unauthorized access to company resources.
Involve Leadership
Lead by example—get your business’s leadership team involved in promoting best practices for IT and cybersecurity across all departments.
Implement Cybersecurity Tools
Use technologies like Endpoint Detection and Response (EDR) and Security Information and Event Management (SIEM) to detect and monitor shadow IT. Additionally, tools with attack surface management and user-based tracking capabilities, such as passive authentication, can provide continuous visibility into your company’s internet-facing assets and user activity. This enhanced visibility allows your IT team to correlate security events with specific users, helping to detect and respond to unauthorized tools or applications quickly. Implementing a zero trust architecture can further strengthen your defenses by verifying every device and user, reducing the risk of shadow IT slipping through unnoticed.
Conduct Security Awareness Training
Regular cybersecurity training sessions can help educate your business’s employees on the risks associated with shadow IT and teach them how to make safer choices when it comes to technology. Learn more about Security Awareness Training.
Perform Regular IT Audits
Frequent IT audits can help you uncover hidden shadow IT assets and assess your network’s overall security. By regularly reviewing your systems, you can catch vulnerabilities before they turn into significant threats.
We Help Keep Your Business Safe.
At High Touch Technologies, we understand the risks that shadow IT poses to your organization, and we’re here to help.
With our comprehensive managed IT services and cybersecurity solutions, we can help ensure your business is protected from hidden threats. Not sure where to start? A cybersecurity risk assessment can help.
Contact us today to learn how we can help you secure your technology landscape and stay ahead of potential risks.