When the software and hardware you procure for your business aren’t cutting it, employees will seek alternatives that will get the job done more efficiently. This is mostly to save them time and headaches, but fortunately, it can create a more productive infrastructure. The problem starts when this shadow IT is integrated into your network without the proper preparation or without even informing leadership.
Unmanaged, effectively invisible applications and devices can create serious cybersecurity, compliance, and operational risks for your business. Without proper oversight, employees can unintentionally expose sensitive business data through tools that your IT team doesn’t even know exist.
Understanding the risks of shadow IT will help you strengthen security without slowing down productivity.
What is shadow IT?
Shadow IT refers to any software, hardware, application, or cloud service employees use without approval and/or oversight from your IT department or managed IT services provider (MSP).
Examples of shadow IT include, but are not limited to:
- Storing work files in personal cloud drives
- Providing cloud platform access to unapproved apps
- Using unauthorized messaging apps
- Workers installing unapproved software
- Accessing company data from personal devices
- Integrating SaaS tools independently from other departments
Employees usually adopt these tools because they believe they improve convenience, communication, or productivity. However, even without malicious intent from the employees using them, unauthorized tools operating outside your company’s security policies can be just as dangerous than a targeted cyberattack.
How shadow IT puts your business at risk
Shadow IT exposes your business to a variety of severe dangers, threatening both financial stability and legal standing. While merely managing unapproved systems creates operational difficulty and drives up maintenance costs, the true danger lies in the security and regulatory fallout.
Reduced cybersecurity control
Unapproved applications often lack proper security configurations or enterprise-grade protections. Some may store data insecurely, use weak encryption, or fail to receive timely security updates.
This creates opportunities for attackers to exploit vulnerabilities.
For example, your business may enforce multifactor authentication, data retention policies, and access controls on approved systems. However, an employee using an unapproved app may bypass all those protections without realizing it, opening a door into your network that cybercriminals can easily slip through.
In this way, shadow IT greatly increases the risk of:
- Data breaches
- Malware infections
- Ransomware attacks
- Unauthorized data sharing
Compliance penalties
For businesses subject to regulations such as HIPAA, PCI DSS, or GDPR, shadow IT creates additional concerns. These laws have strict requirements for what software can access sensitive data. So if unapproved and insecure apps are connected to your network, auditors will find them and penalize your company.
Whether or not a data breach occurs is irrelevant, as allowing shadow IT to access controlled data is itself a punishable offense. If a data breach does occur and shadow IT is found in your systems, you’ll be subject to compliance fines and penalties on top of the damage caused by the attack.
Easy ways to reduce the threat of shadow IT
Completely eliminating shadow IT is difficult, but you can significantly reduce the risks through smart policies, user education, and proactive IT management.
Stop it at the source
Start by understanding why employees turn to unauthorized tools in the first place. They aren’t doing it to hurt the business; they do it because your approved systems are difficult to use or fail to meet their needs. Improve user experience by auditing your existing IT and collecting feedback from employees.
Create a clear IT policy
Create clear technology usage policies that explain:
- Which applications employees can use
- How company data should be stored
- Rules for personal devices
- Approval procedures for new software
Employees are more likely to follow your policies when expectations are easy to grasp.
Security awareness training
Effective training focuses on empowering staff with the knowledge to make secure decisions. A comprehensive program should include modules on identifying the specific security risks associated with unauthorized applications, clear guidance on adhering to established company IT policies, and a detailed walkthrough of the official software approval process to ensure new tools are vetted and integrated safely.
Work with a managed IT services provider
An MSP has the expertise to determine and implement the most efficient IT tools for your business’s needs into your technology infrastructure. With solutions tailored to their workflows, they are less likely to turn to shadow IT to do their work.
MSPs also provide continuous network monitoring that will alert you when shadow IT accesses your network.
Contact outsourceIT today for a FREE consultation and learn how we can eliminate the risks of shadow IT without sacrificing your team’s productivity.
