It sounds like something nefarious, but most shadow IT is well-intentioned. When employees move to solve a problem quickly, without first following company protocols or consulting the IT team, the result is often a new software installation that most people in the organization don’t know about. In other words, the installation lives in the shadows.
The growing trend of shadow IT in modern organizations reflects the increasing reliance on technology in the workplace. As organizations become more digital, managing these unsanctioned IT practices is important for maintaining your data integrity and operational security.
Shadow IT has emerged from easy cloud access. Employees adopt unapproved tools like personal storage and messaging platforms out of convenience. These practices create significant cybersecurity risks, data vulnerabilities, and compliance challenges that require strategic technological management.
What Is Shadow IT?
Shadow IT refers to the use of unauthorized hardware, software, or services within an organization without the approval or knowledge of the IT department. This includes employees:
- Using personal cloud storage for work files
- Adopting productivity tools without approval
- Communicating through unauthorized messaging platforms
Unlike sanctioned IT practices, which are approved and managed by your organization’s IT team, shadow IT operates outside official channels. Its prevalence has grown significantly due to the rise of cloud technologies, which have lowered the barrier to entry for adopting new tools.
Common Examples
Common examples of shadow IT include the:
- Use of personal cloud storage services like Google Drive or Dropbox for work files
- Adoption of productivity tools without IT approval
- Communication through unauthorized messaging platforms like WhatsApp or Slack
Employees may also use personal email accounts for work purposes or install unapproved software on company devices.
Most don’t mean any harm by this. They’re likely leveraging shadow IT tools to boost productivity, using cloud technologies and remote work flexibility to creatively solve problems and streamline workflows beyond traditional IT constraints, enabling faster, more adaptive work solutions.
Cloud-based services and SaaS applications are easily accessible and can improve productivity and efficiency. For instance, cloud storage allows employees to access work files from any device with an internet connection.
Potential Risks
The use of shadow IT has exploded over the past few years. In 2023, Gartner found that 41% of employees are using it in some form or fashion. That number is expected to skyrocket to 75% by 2027.
This could have repercussions for your business. The use of unauthorized hardware, software, or services increases vulnerability to data breaches and cyberattacks due to lack of oversight. In fact, one report found that of the 85% of global firms that faced cyberattacks in 2023, 11% were due to shadow IT.
Without proper security controls, these unsanctioned assets expand your business’s attack surface, providing more opportunities for threat actors to exploit vulnerabilities.
One major risk is the potential loss of control over sensitive data. Employees using personal cloud storage or unapproved communication platforms may inadvertently expose confidential information to unauthorized access. This can lead to data exfiltration and breaches that may go unnoticed for extended periods.
Non-compliance with regulatory standards is another critical concern. Shadow IT may violate industry-specific regulations like HIPAA or GDPR, resulting in legal issues and substantial penalties. If your company is in a highly regulated sector such as healthcare or government agencies, you face increased risks of non-compliance due to shadow IT practices.
Shadow IT can also cause significant reputational damage. Data breaches or compliance violations stemming from unauthorized tools can erode trust and credibility. The use of unsanctioned applications for external communication may imply a lack of proper governance and control mechanisms, further damaging your organization’s reputation.
Implications for Cybersecurity
Shadow IT significantly impacts cybersecurity by expanding your organization’s attack surface and complicating threat assessments. Unauthorized software and services create security gaps that are invisible to IT teams, making it challenging to protect against potential threats.
Every instance of shadow IT introduces new vulnerabilities, often with weak or default credentials and misconfigurations that cybercriminals can exploit. This expanded attack surface is not covered by your organization’s standard security measures.
Many organizations fail to include shadow IT in their security strategies, exacerbating these vulnerabilities. Consequently, shadow IT increases the risk of data breaches, cyberattacks, and compliance violations, potentially leading to severe financial and reputational damage for your business.
How TenHats Can Help
AT TenHats, we offer comprehensive cybersecurity services to help your business combat modern-day cyber threats. To do this, our team provides you with expertise in:
- Security best practices
- Emerging technologies
- Security intelligence
All of this helps to effectively manage and mitigate your risks.
By implementing robust, scalable IT services across your organization, TenHats can also help reduce the need for shadow IT by providing approved, enterprise-grade solutions. Our 24/7 technical support ensures that employees have access to authorized tools and assistance, helping to decrease the likelihood of using unauthorized software.
Additionally, our cloud management services can help your organization maintain better control over your IT environment, making it easier to detect and prevent shadow IT usage.
