Shadow IT refers to the unauthorised use of digital tools and applications by employees in their work environment. Employees might use personal cloud accounts, unsanctioned SaaS applications, or non-approved communication tools, bypassing official IT channels to access resources more quickly. The motives behind this may often be to stay on the front foot with emerging tools like AI and automation, however without due consideration and safeguards, the risks of using such tools usually outweighs the benefits for the organisation.

The hidden dangers of shadow IT

Using unauthorised tools can lead to several security issues:

• Data breaches: Unapproved apps may lack robust security measures, making it easier for hackers to access sensitive information.
• Compliance violations: Using unauthorised tools can result in non-compliance with industry regulations, risking hefty fines.
• Data loss: Critical data stored in unapproved applications can be lost or compromised, impacting business continuity.
• Attack surface expansion: Unauthorised tools increase the number of potential entry points for cyber-attacks and prevents appropriate protections from being put in place
• System inefficiencies: Incompatibilities between unauthorised tools and approved systems can create operational inefficiencies.
• Increased costs: Shadow IT can lead to unforeseen expenses related to security breaches and compliance fines.
• Duplicate silos of data: These unsanctioned data locations may conflict with official systems and result in incomplete, inaccurate or duplicate data for the business

Spotting shadow IT in your organisation

To mitigate the risks, you first need to identify shadow IT. Network monitoring tools can be utilised to detect unauthorised apps and devices. Regularly surveying employees about the tools they use for work can provide valuable insights. Additionally, periodic software audits help identify unauthorised tools and applications.

Proactive strategies

Once identified, here’s how to mitigate the risks of shadow IT:

1. Understanding: Understanding the reason for the shadow IT implementation in the first place goes a long way to building employee trust in the official IT process and can help bridge the gap to the use of sanctioned tools. This can also help with roadmap development for future implementation of tools in the business
2. Education and training: Educate employees on the risks of using unauthorised tools and encourage them to use approved applications. Regular training sessions can help reinforce security policies.
3. Provide secure alternatives: Ensure employees have access to secure, approved tools that meet their needs. For example, offering platforms like Microsoft 365 and Copilot can help prevent the use of unauthorised tools.
4. Implement strict policies: Establish clear policies on the use of software and devices and enforce them consistently. Clear guidelines help employees understand what is acceptable and what is not.
5. Regular audits: Continuously monitor and audit the tools and apps being used within the organisation to ensure compliance. Regular audits help identify new instances of shadow IT and address them promptly.

Take control today

Shadow IT can pose significant risks to your organisation’s data, reputation and financial position, but with the right strategies, you can mitigate these risks effectively. Focus on educating employees, providing secure alternatives, and enforcing strict policies to manage your IT infrastructure effectively. By building a culture of security awareness, offering the right tools, and implementing tailored policies, you can safeguard your business from the hidden dangers of shadow IT.