When small businesses think about cybersecurity threats, they often focus on obvious dangers—phishing emails, weak passwords, or malware. But there’s a stealthier risk that’s growing fast, and it’s happening inside your network.
It’s called Shadow IT, and it’s what happens when employees use unauthorized apps or cloud services without your IT team’s approval. While it might seem harmless—just a new tool to get work done faster—Shadow IT can expose your business to serious security, compliance, and data loss risks.
What Is Shadow IT?
Shadow IT refers to any apps, software, or services used within your company without formal approval from IT. These tools are often downloaded with good intentions—by employees just trying to be more efficient—but without proper oversight, they can become serious vulnerabilities.
Common Examples of Shadow IT:
- Employees storing company documents in personal Google Drive or Dropbox accounts.
- Teams using unapproved project management tools like Trello or Asana.
- Staff messaging through WhatsApp, Telegram, or Facebook Messenger on company devices.
- Marketing teams experimenting with AI tools or automation software without vetting.
If it’s not approved, monitored, or secured by IT—it’s Shadow IT.
Why Shadow IT Puts Your Business at Risk
When your IT team isn’t aware of the software your employees are using, they can’t secure it. That leaves your business exposed to cyberattacks, data leaks, and compliance violations. Here’s what’s at stake:
- Unsecured Data Sharing
Personal apps often lack proper encryption. That means confidential data—like client files, contracts, or financials—could be shared or intercepted without your knowledge.
- No Security Patches or Updates
Your IT team regularly updates approved software to patch vulnerabilities. Unauthorized apps, on the other hand, may go months (or years) without critical security updates.
- Compliance Violations
Businesses subject to regulations like HIPAA, PCI-DSS, or GDPR must ensure all software is secure and compliant. Shadow IT can put you at risk of fines and legal trouble.
- Increased Risk of Malware and Phishing
Employees may accidentally install apps that contain malware, spyware, or adware, believing they’re legitimate. This was the case with the “Vapor” app scandal, where 300+ malicious apps were downloaded over 60 million times from Google Play before being discovered.
- Account Hijacking and Credential Theft
Unauthorized tools often lack multifactor authentication (MFA). If login credentials are reused or stolen, hackers could gain access to your entire business network.
Why Do Employees Use Unauthorized Apps?
Shadow IT often happens with good intentions. Employees aren’t trying to create risk—they’re trying to get things done. Common reasons include:
- Frustration with outdated or clunky approved tools
- A desire to work more efficiently
- Lack of awareness about cybersecurity risks
- Impatience with slow or rigid IT approval processes
Unfortunately, even well-meaning decisions can have devastating consequences when it comes to your business security.
How to Detect and Prevent Shadow IT in Your Business
The first step to stopping Shadow IT is visibility. You can’t secure what you don’t know exists. Here's how to take control:
- Create a List of Approved Software
Work with your IT provider to build and maintain a list of vetted, secure tools. Make it easy for employees to access and request new tools when needed.
- Restrict Unauthorized App Downloads
Set device policies that block employees from installing unapproved software on company devices. Require IT approval for new installations.
- Educate Your Team About the Risks
Your staff won’t change what they don’t understand. Train employees on the dangers of Shadow IT and how it can compromise the business.
- Monitor Network Activity for Unauthorized Apps
Use network monitoring tools to flag unapproved apps or unusual traffic. This gives your IT team early warning of potential security threats.
- Deploy Endpoint Security Tools
Install endpoint detection and response (EDR) tools that track usage, prevent unauthorized access, and alert you to suspicious activity in real time.
Stop Shadow IT Before It Causes a Data Breach
Shadow IT is more than just a tech issue—it’s a business risk. Unauthorized tools can lead to data leaks, system downtime, compliance failures, and even lawsuits.
At Information Management Systems, we help small businesses across Fargo and the region identify hidden threats and close security gaps before they become disasters.
Get a FREE Network Security Assessment Today
Want to know if Shadow IT is putting your business at risk? Let’s find out—at no cost.
Our FREE Network Security Assessment will:
- Identify unauthorized apps and hidden vulnerabilities
- Evaluate your existing cybersecurity protocols
- Provide an action plan to secure your network and protect your data
👉 Click here to schedule your FREE assessment or call us at (701) 364-2718.
