What Is Shadow IT?

Unapproved hardware and software can pose security risks to your organization, including data loss or breach. Furthermore, these unauthorized tools increase your attack surface by offering cyber attackers new entryways into your network.

Shadow IT may cause regulatory compliance violations if employees transfer sensitive PII or PCI data through private channels, which poses a particular danger for organizations subject to GDPR or CCPA regulations.

Shadow IT refers to any technology-related hardware, software or devices employees use without informing their organization's IT department. This practice often violates compliance initiatives while creating major security risks for a business.

Shadow IT exposes sensitive data to external hackers, placing employees at risk of data breaches that can incur steep fines or lead to business closure. Furthermore, using unapproved tools exposes companies to legal and regulatory risks such as GDPR violations, CCPA issues and SOX/PCI DSS infractions.

Employees who utilize unapproved software typically do so out of convenience or to increase productivity. For instance, developers might create cloud workloads under their credentials because waiting through IT channels may take weeks or months while their deadlines loom larger than ever.

Shadow IT can appear across various platforms, from commercial desktop products and apps like Slack or WhatsApp for mobile phones to remote PCs, laptops and BYOD devices. Rogue applications may also be downloaded via free or unsecured cloud services, loaded onto user devices, or installed directly into unmanaged remote systems like file servers, local work area stockpiles or Dropbox.

IT departments may find it challenging to keep pace with new technologies, and their lack of visibility can create organizational chaos. One effective strategy to combat shadow IT is giving employees access to enterprise-class SaaS applications that IT can monitor securely.

Shadow IT presents organizations with security risks. Since IT departments don't know about it, they can't ensure its safety - leading to data breaches, theft and cyberattacks. Furthermore, shadow IT may use less restrictive security measures than sanctioned software, compromising overall organizational security.

Organizations can combat shadow IT by employing various strategies. One such is monitoring their IT environment with a network inventory solution, enabling them to identify all network devices and understand where company data resides. Furthermore, employers should work with employees to communicate openly about which tools are needed to complete their jobs effectively. This dialogue can reduce unsanctioned technology usage by ensuring employees can access what they require for work.

What are the risks of shadow IT?

Shadow IT exposes businesses to increased data loss and downtime due to unsanctioned applications being used to access data or complete specific tasks, posing security risks by allowing hackers to penetrate networks via unprotected channels.

Users may turn to shadow IT when their organization doesn't provide them with the best tools to complete certain tasks efficiently, especially if gaining IT approval is time-consuming. Furthermore, shadow IT tools may help employees meet business needs more quickly by providing customized solutions tailored to them and their business requirements.

Shadow IT also poses compliance risks for organizations. If an employee uses unapproved cloud storage apps to store sensitive client records or company documents, these files could become exposed in an attack or breach, putting your organization at risk for regulatory fines or reputational harm.

IT departments can reduce the impact of shadow IT by implementing policy controls to manage it effectively. This may involve restricting or blocking the usage of any unapproved software or services within certain locations in their network or blocking all use altogether. Privileged Access Management (PAM) discovery tools can assist organizations in discovering devices, applications, networks, and user credentials which access shadow IT.

Why does shadow IT occur in businesses?

Shadow IT may occur for various reasons. IT teams often fail to grasp the needs and challenges facing their business-side colleagues fully; additionally, pressures placed upon them, such as meeting tight deadlines, may limit the willingness of these IT teams to invest in innovative technologies and solutions.

IT departments sometimes find it impossible to keep pace with rapidly shifting business demands, particularly given the prevalence of cloud services, mobile devices and collaboration tools that make managing this complex environment difficult. IT leaders require solutions that provide visibility and control to oversee these tools effectively.

Employees tend to feel more at ease using technology they already understand than waiting for IT teams to approve, test and deploy new solutions. Shadow IT may result from this reality: employees feel more comfortable using solutions they already possess rather than learning something completely new from scratch.

Shadow IT often occurs because employees are dissatisfied with the current IT support offered by their organization, such as slow response times or no transparency regarding budget and spending transparency. By providing greater communication and training on IT policies and procedures, businesses may help relieve some of these concerns while using a SaaS Management platform such as Productive to uncover hidden apps or services and take necessary measures against them.

What are the benefits of shadow IT?

Shadow IT provides an easy and affordable way for organizations to address technology that might otherwise not fit quickly. Depending on its form, shadow IT could improve productivity by increasing collaboration and workflow automation or replacing expensive corporate solutions with cheaper or updated alternatives.

Shadow IT tools are often developed by employees who recognize their limitations and wish to address problems they encounter in their work. Employees might search online or download directly onto personal devices for the software needed, which can save both time and money by bypassing IT departments' approval processes that often are slow and inefficient.

Employees accessing unapproved hardware, software, and cloud apps increase the risk of a data breach and make it more difficult to pinpoint its source; as a result, teams must communicate about their needs and seek IT approval only when necessary.

Shadow IT usage may result from poor employee communication or a problematic remote work model, making it essential to recognize its existence and take measures to mitigate its risks. This might involve providing security best practice education, supporting BYOD programs, prohibiting unapproved hardware/software usage policies or outlining clear guidelines on managing remote work effectively.

Shadow IT through network monitoring solutions

Companies can help avoid shadow IT by encouraging users to utilize only approved technology, applications, and devices. This helps protect sensitive data from being exposed by unapproved software or devices and ensures regular backups are being made.

One way to combat shadow IT is through network monitoring solutions that uncover all elements and their status of your network and help identify any rogue assets containing sensitive information, like personally identifiable or protected health information (PII/PHI). Furthermore, network monitoring tools may detect and block any unauthorized USB devices being used on your network.

Education of employees regarding the risks associated with unapproved IT solutions is also vital, helping to decrease their usage in the workplace and foster an open dialogue between IT staff and employees so that effective and convenient solutions can be found more readily.

Shadow IT poses a serious security risk to organizations, as it can result in various issues like data breaches and compatibility issues. Furthermore, shadow IT acts as a backdoor to hackers as they bypass an organization's cybersecurity systems and further increase the burden on the IT department by forcing them to spend additional time troubleshooting and responding to support requests.