Shadow IT describes any technology used within your business without the knowledge, consent, or approval of your IT team. In short, unauthorized tech. Shadow IT can take the form of, for example, an employee downloading and using Zoom to conduct a meeting with colleagues instead of the IT-sanctioned Microsoft Teams.
80% of employees admit to using applications without IT approval. And when 70% of organizations have experienced a compromise via Shadow IT, bringing this issue to light is critical to your business’s data integrity.
Let’s look at the risks posed by Shadow IT, ways you can work with Shadow IT rather than against it, and how to gain control over the use of unauthorized apps, cloud services, or devices your employees may be using in their day-to-day tasks.
The challenges (and benefits) of Shadow IT
When your IT team is unaware of apps that your employees are using to complete tasks that deal with sensitive data, they can’t monitor them as they would officially approved and vetted tech. And when your IT team doesn’t have insight into these apps’ vulnerabilities (updates, patching, permissions), it leaves your business’s doors open to bad actors, placing you at heightened risk of a data breach. The cost of a data breach is increasingly high ($4.45 million in 2023), but beyond dollars and cents, the hit to your business’s reputation can be devastating. If your business is in a highly regulated industry, these penalties may be even more severe.
Employees who install shadow technology do not do so maliciously; their goal is usually to streamline their workload and increase productivity. Proficient at using lots of apps and devices in their personal lives, employees assume this can neatly translate to their work environment – your business. Add that to an overburdened IT team who can’t meet every request, employees end up taking tech into their own hands. Yet, employees are not completely unaware of the risks involved– 79% of employees said the biggest threat associated with introducing new technologies without the IT team's approval is risking the security of the company. Employees say one thing and do another, leaving your business vulnerable to threats.
That’s not to say that all things associated with Shadow IT are damaging to your company’s security posture. While unauthorized tech may keep IT in the dark, it can shed light on technology advocates within your organization. These enthusiasts can evangelize cybersecurity education and awareness and help teams become more agile in new technology adoption. Additionally, Shadow IT can demonstrate tangible business needs, closing the gap between what is truly valuable to your employees’ productivity and what may be inadvertently bloating your tech stack.
Illuminating Shadow IT
So how can your business work with Shadow IT rather than against it? Securing your entire business – not just pockets – is critical. Giving employees the tools to use all their apps securely can help you take unauthorized tech out of the shadows, while giving IT much needed oversight.
You may think you have enough security tools in place, but there could still be gaps (just like with Shadow IT). While SSO can reduce passwords, it doesn’t cover all logins; MFA enables additional security but can add user friction. For every login, especially those credential–based sites that leave gaps that hackers can slip through, a password manager is vital.
LastPass gives your employees a secure option for storing their passwords, even on Shadow IT devices or apps, while IT can manage password security across the entire business. Features like Dark Web Monitoring alert employees when credentials are found on the dark web, so they can take immediate steps to mitigate risk. With the right tools in place, you can bring Shadow IT into the light – and empower employees to secure their digital footprint.
See how LastPass can help you control Shadow IT: Download guide.
