Key points
- Shadow IT refers to unauthorized devices, apps, or services outside IT control, creating serious security and compliance risks.
- Employees may adopt unsanctioned software due to inefficient tools, slow approvals, productivity demands, and a lack of security awareness.
- Apart from unapproved software, shared credentials, personal devices, and unauthorized cloud storage can also be flagged as instances of shadow IT.
- Training, tracking unusual network activity, and flagging misuse of IT assets and credentials are common ways to prevent further incidents.
By its very nature, shadow IT is often unseen by IT security teams. This oversight routinely risks organizations violating data privacy laws, distorting IT budgets, and being exposed to nefarious actors. In a remote work environment, shadow IT poses a new threat that must be actively managed.
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What is shadow IT?
Shadow IT is the practice of using information technology systems that an organization’s IT department does not manage. This can be anything from using an unsanctioned personal device to downloading software or applications that the IT department does not approve.
Understanding shadow IT behaviors
The rise of unconventional work setups that have become normalized in recent years has created many challenges for businesses and organizations.
One is ensuring the protection of company data from breaches and unauthorized access. Providing sanctioned devices can establish a baseline level of control.
However, some hurdles still exacerbate the risks associated with shadow IT. These hurdles encompass IT behaviors displayed by employees themselves that contribute to the risks brought by shadow IT.
Examples of shadow IT practices
For a better overview of shadow IT, here are some common shadow IT examples:
Downloading unapproved software
It may seem harmless to install software or applications the IT department hasn’t reviewed, but that doesn’t mean it’s secure. Some apps request access to sensitive data, system resources, or network connections, and one wrong permission can lead to data breaches, compliance violations, or malware infections.
Sharing login credentials
Another practice with a clear security breach risk is sharing login credentials. Usernames and passwords are not supposed to be shared with anyone else. Doing this can easily compromise the security of the user’s accounts and open the door to potential misuse.
Using personal devices for work
More and more companies have started providing employees with work-exclusive devices. However, some employees still use their personal devices despite the potential risk of exposing company data to malware or compromising personal data through work applications.
Using unauthorized cloud storage services.
Employees are tempted to use cloud storage services that they can easily access. This unauthorized cloud storage poses a significant security risk and may even cause the loss of critical company data, leading to operational disruptions, reputational damage, and significant financial penalties.
Utilizing unauthorized communication tools
Sharing confidential information through communication tools not approved by your organization may cause serious breaches of security protocols and compromise sensitive data.
Factors leading to shadow IT adoption
Despite the risks, users adopt shadow IT practices for several reasons:
One is the perceived inefficiency or inadequacy of approved tools provided by the organization. This results in users looking for alternative IT systems to ease their workflow. Another one is the lengthy process of acquiring official IT solutions, which drives users to opt for unauthorized tools for quicker access to necessary functionalities.
In some cases, productivity also drives users to use unsanctioned IT systems. Some may find themselves more productive when using their personal devices that they’re already used to navigating. Others may utilize software that offers specific features or functionalities lacking in approved software, potentially leading to increased efficiency and productivity gains.
Lastly, the users’ lack of awareness about security risks associated with shadow IT can lead to further adoption of shadow IT practices. Without proper knowledge about the implications of shadow IT behavior, they may unknowingly expose sensitive company data.
The negative implications of shadow IT usage
Beyond the motivations for shadow IT adoption, it’s crucial to delve into the risks it may pose to an organization.
For instance, unauthorized software and devices typically lack the security patches and updates provided by manufacturers, creating potential entry points for malware and cyberattacks that can compromise the entire network, leading to widespread disruptions, data, and financial losses.
In this new age, Shadow AI has also introduced new risks, which may continue to grow as teams scramble to adopt AI-powered tools.
The pros and cons of shadow IT usage
It’s easy to avoid shadow IT practices if they only have negative consequences. However, shadow IT can offer some user-end benefits alongside its significant risks.
Pros:
- Employee satisfaction. Utilizing unauthorized tools that may aid in expediting workflow can ease an employee’s burdens.
- Increased productivity. When users are satisfied with the unsanctioned IT system efficiency and productivity gains can increase.
- Innovation introduction. Using unapproved IT systems may lead to the discovery of more innovative tools and efficient ways of completing tasks.
- Flexibility and adaptability. Shadow IT allows users to utilize tools they are familiar with and comfortable using. This reduces a steep learning curve and can increase efficiency.
- Collaboration. Shadow IT practices involving unauthorized communication channels may promote a more efficient user collaboration.
- Personalization. Shadow IT tools may offer more personalization than standardized, one-size-fits-all solutions provided by the IT department.
Cons:
- Exposure to vulnerabilities. Shadow IT tools are easy targets for cyberattacks because they often lack security features and protocols implemented by an organization’s IT team.
- Non-compliance with regulations. Shadow IT tools also frequently lack the essential safeguards to ensure compliance with industry regulations, putting the organization at significant risk.
- Support hurdles. Sanctioned IT systems are in place to resolve any issues that may arise immediately. Shadow IT tools may not have complete dedicated support infrastructure, which can hinder the resolution of technical issues.
- Data loss. Shadow IT tools increase the risk of sensitive data loss due to the lack of data protection measures often found in unauthorized tools.
- Financial losses. Data breaches caused by shadow IT tools can lead to revenue loss due to regulatory fines, incident response costs, operational downtime, etc.
- Version control issues. Multiple versions of unauthorized software across an organization can create compatibility problems and hinder collaboration.
In addition to these factors, you can Ddownload the What We Do in the Shadows: The Dangers of Hidden IT Behaviorour full report report to read about what we’ve learned from a community survey about Shadow IT.
Managing shadow IT behavior
With the emergence of hybrid and remote work setups, some employees find IT shadow tools beneficial. However, the benefits of these unauthorized IT systems are frequently short-term. While it can be challenging for organizations to fully eradicate shadow IT practices, there are ways to manage and mitigate risks. An endpoint management system like NinjaOne can be a perfect ally in this endeavor.
NinjaOne empowers IT teams to manage and mitigate shadow IT behavior. Its features grant real-time visibility over your network, automate tasks, and enforce security policies while providing user-friendly access to approved IT solutions, ultimately boosting security and employee satisfaction. This fosters a secure and productive work environment that empowers employees while safeguarding critical data and assets.
Get a clearer view of your IT environment to manage your assets better with the NinjaOne’s IT Asset Management Software
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