Blog
October 3, 2024

A Guide to Shadow IT: Risks, Challenges, and Examples

In this article, we'll dive into what Shadow IT is, its risks, and how you can tackle its challenges in your organisation.

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Key Points

  • Shadow IT refers to the use of IT systems and applications without IT department approval, which can lead to security vulnerabilities.
  • Common Shadow IT examples include unauthorised use of cloud services like Dropbox and communication tools like Slack.
  • The prevalence of Shadow IT is increasing due to the ease of access to cloud-based applications and remote work practices.
  • Metomic offers tools to identify instances of sharing sensitive data to Shadow IT, enhancing security and compliance.

Employees have always sought productivity shortcuts beyond official channels, but the modern practice of Shadow IT poses new challenges in keeping your organisation’s data safe.

It’s not uncommon for employees to use technology and tools without getting the official nod from the IT department.

This practice, known as Shadow IT, happens when people turn to unauthorised apps and services to get their work done faster and more efficiently.

While Shadow IT can boost productivity and spark innovation, it also brings along significant security risks and compliance headaches.

For IT and security teams, understanding and managing Shadow IT is crucial to keep organisational data safe and maintain strong security measures.

Source: https://www.businesswire.com/

What is meant by Shadow IT?

Put simply, shadow IT is when employees go rogue and use their own tech solutions to get their work done, bypassing the official channels.

This could be anything from using personal laptops and smartphones to access work emails, to downloading unauthorised software or signing up for cloud services like Dropbox and Google Drive without the IT team’s knowledge.

There are several types of IT-related activities and purchases that fall under Shadow IT. These include hardware such as personal computers, tablets, and smartphones.

Software examples range from productivity tools like Trello or Asana to communication apps like Slack and WhatsApp. Cloud services, especially those offering Software as a Service (SaaS), Infrastructure as a service (IaaS), and Platform as a service (PaaS), are also common culprits.

It's estimated that Shadow IT makes up between 30-40% of total IT spending in organisations, so the scale of Shadow IT is significant and clearly widespread. IT departments need to understand this and address it proactively.

What are the security risks of Shadow IT?

Shadow IT poses several significant security risks to organisations, including:

1. Data breaches and leaks

‍When employees use unauthorised apps and services, these tools often lack the security measures of approved IT solutions. This gap can lead to sensitive data being exposed or stolen.

2. Noncompliance with regulations

‍Many industries, from finance to healthcare, have strict data protection laws and compliance standards. Shadow IT can easily bypass these regulations, resulting in hefty fines and legal repercussions. For instance, storing company data in personal cloud accounts without proper encryption or backup protocols can violate data protection regulations.

3. Increased attack surface

‍Shadow IT introduces numerous entry points for cyber attackers, many of which are unknown to the IT department, resulting in nearly 1 in 2 cyber attacks stemming from Shadow IT. Without visibility into these unauthorised tools and services, it becomes nearly impossible to secure them effectively, significantly increasing the organisation’s vulnerability to cyberattacks.

Understanding these security risks is crucial for developing strategies to mitigate them and protect the organisation’s data integrity.

Why is Shadow IT a growing problem?

The prevalence of Shadow IT is on the rise, and several key factors contribute to this growing issue:

1. Adoption of cloud-based services

‍The ease and convenience of cloud-based applications make them a popular choice for employees looking to enhance their productivity.

However, this often happens without IT's knowledge, creating a blind spot in the organisation's security framework. And when you consider that 65% of all SaaS applications accessed in business are Shadow IT, the scope of the issue quickly becomes apparent.

2. Employee productivity and flexibility

‍Employees often turn to Shadow IT solutions to bypass bureaucratic delays associated with getting new tools approved by the IT department.

These tools can provide quick fixes that enhance productivity and flexibility, but they also introduce risks as they are not vetted for security.

3. Impact of remote work and BYOD policies

‍The shift to remote work and the Bring Your Own Device (BYOD) trend have exacerbated the Shadow IT problem.

Employees working from home or using personal devices are more likely to use unauthorised applications to get their job done, further complicating the IT department's ability to monitor and secure the organisation's digital environment.

The increasing reliance on Shadow IT underscores the need for organisations to adopt strategies that balance employee autonomy with robust security measures.

How can security teams mitigate Shadow IT?

Security teams face a significant challenge in managing Shadow IT, but there are effective strategies to mitigate the associated risks:

1. Educating employees on IT policies

‍One of the most effective ways to combat Shadow IT and data security is through employee education. By making staff aware of the risks and the importance of adhering to IT policies, organisations can reduce the likelihood of unauthorised technology use. Regular training sessions and clear communication about the dangers of Shadow IT are essential.

2. Implementing strong IT governance processes

‍Establishing strong IT governance frameworks ensures that all technology use within the organisation is monitored and controlled. This includes creating policies that require all new software and hardware to be approved by the IT department. Governance frameworks should also involve regular audits to identify and address instances of Shadow IT.

3. Using Cloud Access Security Brokers (CASBs)

CASBs act as intermediaries between users and cloud service providers, providing visibility and control over the use of cloud-based applications. By implementing CASBs, organisations can monitor and manage the use of unauthorised cloud services, ensuring that security protocols are upheld even when employees attempt to use Shadow IT.

The importance of these measures is underscored by the fact that from 2021-2023, 85% of companies globally experienced cyber incidents, with 11% attributed to the unauthorised use of Shadow IT.

By adopting these strategies, security teams can better protect their organisations from the risks associated with Shadow IT.

How can Metomic help?

Navigating the complexities of Shadow IT can be daunting, but Metomic offers robust data security solutions to help organisations manage and mitigate these risks effectively.

  • Identifying and monitoring Shadow IT usage: Metomic provides tools that help IT departments detect the sharing of confidential company documents to unauthorised destinations, like personal email addresses or external applications like ChatGPT. By offering visibility into those actions, Metomic allows your organisation to quickly identify and address potential data leaks, and keep sensitive data secure.
  • Providing insights into usage patterns: Metomic can give you detailed insights into usage patterns. This data allows organisations to understand why employees are turning to unsanctioned tools and helps IT departments to find approved alternatives that meet employees' needs without compromising security.
  • Ensuring compliance and security: With Metomic, organisations can ensure that all data security activities comply with regulatory requirements and internal policies. It continuously monitors for compliance issues, providing alerts and recommendations to address any breaches of security policy promptly. This proactive approach helps to maintain a secure and compliant IT environment, reducing the risk of data breaches and other security incidents.

By leveraging Metomic's capabilities, organisations can effectively manage Shadow IT and protect their data from unauthorised access and other threats.

Want to get better visibility over your digital ecosystem including any Shadow IT your employees might be using? Request a personalised demo of Metomic today to see how we can help your organisation.

Table of content
Table of contents
Table of contents
Table of contents
Table of contents
Table of contents

Jules Thorpe-Smith

Content Creator

Jules Thorpe-Smith is a Content Creator at Metomic

Key Points

  • Shadow IT refers to the use of IT systems and applications without IT department approval, which can lead to security vulnerabilities.
  • Common Shadow IT examples include unauthorised use of cloud services like Dropbox and communication tools like Slack.
  • The prevalence of Shadow IT is increasing due to the ease of access to cloud-based applications and remote work practices.
  • Metomic offers tools to identify instances of sharing sensitive data to Shadow IT, enhancing security and compliance.

Employees have always sought productivity shortcuts beyond official channels, but the modern practice of Shadow IT poses new challenges in keeping your organisation’s data safe.

It’s not uncommon for employees to use technology and tools without getting the official nod from the IT department.

This practice, known as Shadow IT, happens when people turn to unauthorised apps and services to get their work done faster and more efficiently.

While Shadow IT can boost productivity and spark innovation, it also brings along significant security risks and compliance headaches.

For IT and security teams, understanding and managing Shadow IT is crucial to keep organisational data safe and maintain strong security measures.

Source: https://www.businesswire.com/

What is meant by Shadow IT?

Put simply, shadow IT is when employees go rogue and use their own tech solutions to get their work done, bypassing the official channels.

This could be anything from using personal laptops and smartphones to access work emails, to downloading unauthorised software or signing up for cloud services like Dropbox and Google Drive without the IT team’s knowledge.

There are several types of IT-related activities and purchases that fall under Shadow IT. These include hardware such as personal computers, tablets, and smartphones.

Software examples range from productivity tools like Trello or Asana to communication apps like Slack and WhatsApp. Cloud services, especially those offering Software as a Service (SaaS), Infrastructure as a service (IaaS), and Platform as a service (PaaS), are also common culprits.

It's estimated that Shadow IT makes up between 30-40% of total IT spending in organisations, so the scale of Shadow IT is significant and clearly widespread. IT departments need to understand this and address it proactively.

What are the security risks of Shadow IT?

Shadow IT poses several significant security risks to organisations, including:

1. Data breaches and leaks

‍When employees use unauthorised apps and services, these tools often lack the security measures of approved IT solutions. This gap can lead to sensitive data being exposed or stolen.

2. Noncompliance with regulations

‍Many industries, from finance to healthcare, have strict data protection laws and compliance standards. Shadow IT can easily bypass these regulations, resulting in hefty fines and legal repercussions. For instance, storing company data in personal cloud accounts without proper encryption or backup protocols can violate data protection regulations.

3. Increased attack surface

‍Shadow IT introduces numerous entry points for cyber attackers, many of which are unknown to the IT department, resulting in nearly 1 in 2 cyber attacks stemming from Shadow IT. Without visibility into these unauthorised tools and services, it becomes nearly impossible to secure them effectively, significantly increasing the organisation’s vulnerability to cyberattacks.

Understanding these security risks is crucial for developing strategies to mitigate them and protect the organisation’s data integrity.

Why is Shadow IT a growing problem?

The prevalence of Shadow IT is on the rise, and several key factors contribute to this growing issue:

1. Adoption of cloud-based services

‍The ease and convenience of cloud-based applications make them a popular choice for employees looking to enhance their productivity.

However, this often happens without IT's knowledge, creating a blind spot in the organisation's security framework. And when you consider that 65% of all SaaS applications accessed in business are Shadow IT, the scope of the issue quickly becomes apparent.

2. Employee productivity and flexibility

‍Employees often turn to Shadow IT solutions to bypass bureaucratic delays associated with getting new tools approved by the IT department.

These tools can provide quick fixes that enhance productivity and flexibility, but they also introduce risks as they are not vetted for security.

3. Impact of remote work and BYOD policies

‍The shift to remote work and the Bring Your Own Device (BYOD) trend have exacerbated the Shadow IT problem.

Employees working from home or using personal devices are more likely to use unauthorised applications to get their job done, further complicating the IT department's ability to monitor and secure the organisation's digital environment.

The increasing reliance on Shadow IT underscores the need for organisations to adopt strategies that balance employee autonomy with robust security measures.

How can security teams mitigate Shadow IT?

Security teams face a significant challenge in managing Shadow IT, but there are effective strategies to mitigate the associated risks:

1. Educating employees on IT policies

‍One of the most effective ways to combat Shadow IT and data security is through employee education. By making staff aware of the risks and the importance of adhering to IT policies, organisations can reduce the likelihood of unauthorised technology use. Regular training sessions and clear communication about the dangers of Shadow IT are essential.

2. Implementing strong IT governance processes

‍Establishing strong IT governance frameworks ensures that all technology use within the organisation is monitored and controlled. This includes creating policies that require all new software and hardware to be approved by the IT department. Governance frameworks should also involve regular audits to identify and address instances of Shadow IT.

3. Using Cloud Access Security Brokers (CASBs)

CASBs act as intermediaries between users and cloud service providers, providing visibility and control over the use of cloud-based applications. By implementing CASBs, organisations can monitor and manage the use of unauthorised cloud services, ensuring that security protocols are upheld even when employees attempt to use Shadow IT.

The importance of these measures is underscored by the fact that from 2021-2023, 85% of companies globally experienced cyber incidents, with 11% attributed to the unauthorised use of Shadow IT.

By adopting these strategies, security teams can better protect their organisations from the risks associated with Shadow IT.

How can Metomic help?

Navigating the complexities of Shadow IT can be daunting, but Metomic offers robust data security solutions to help organisations manage and mitigate these risks effectively.

  • Identifying and monitoring Shadow IT usage: Metomic provides tools that help IT departments detect the sharing of confidential company documents to unauthorised destinations, like personal email addresses or external applications like ChatGPT. By offering visibility into those actions, Metomic allows your organisation to quickly identify and address potential data leaks, and keep sensitive data secure.
  • Providing insights into usage patterns: Metomic can give you detailed insights into usage patterns. This data allows organisations to understand why employees are turning to unsanctioned tools and helps IT departments to find approved alternatives that meet employees' needs without compromising security.
  • Ensuring compliance and security: With Metomic, organisations can ensure that all data security activities comply with regulatory requirements and internal policies. It continuously monitors for compliance issues, providing alerts and recommendations to address any breaches of security policy promptly. This proactive approach helps to maintain a secure and compliant IT environment, reducing the risk of data breaches and other security incidents.

By leveraging Metomic's capabilities, organisations can effectively manage Shadow IT and protect their data from unauthorised access and other threats.

Want to get better visibility over your digital ecosystem including any Shadow IT your employees might be using? Request a personalised demo of Metomic today to see how we can help your organisation.

Key Points

  • Shadow IT refers to the use of IT systems and applications without IT department approval, which can lead to security vulnerabilities.
  • Common Shadow IT examples include unauthorised use of cloud services like Dropbox and communication tools like Slack.
  • The prevalence of Shadow IT is increasing due to the ease of access to cloud-based applications and remote work practices.
  • Metomic offers tools to identify instances of sharing sensitive data to Shadow IT, enhancing security and compliance.

Employees have always sought productivity shortcuts beyond official channels, but the modern practice of Shadow IT poses new challenges in keeping your organisation’s data safe.

It’s not uncommon for employees to use technology and tools without getting the official nod from the IT department.

This practice, known as Shadow IT, happens when people turn to unauthorised apps and services to get their work done faster and more efficiently.

While Shadow IT can boost productivity and spark innovation, it also brings along significant security risks and compliance headaches.

For IT and security teams, understanding and managing Shadow IT is crucial to keep organisational data safe and maintain strong security measures.

Source: https://www.businesswire.com/

What is meant by Shadow IT?

Put simply, shadow IT is when employees go rogue and use their own tech solutions to get their work done, bypassing the official channels.

This could be anything from using personal laptops and smartphones to access work emails, to downloading unauthorised software or signing up for cloud services like Dropbox and Google Drive without the IT team’s knowledge.

There are several types of IT-related activities and purchases that fall under Shadow IT. These include hardware such as personal computers, tablets, and smartphones.

Software examples range from productivity tools like Trello or Asana to communication apps like Slack and WhatsApp. Cloud services, especially those offering Software as a Service (SaaS), Infrastructure as a service (IaaS), and Platform as a service (PaaS), are also common culprits.

It's estimated that Shadow IT makes up between 30-40% of total IT spending in organisations, so the scale of Shadow IT is significant and clearly widespread. IT departments need to understand this and address it proactively.

What are the security risks of Shadow IT?

Shadow IT poses several significant security risks to organisations, including:

1. Data breaches and leaks

‍When employees use unauthorised apps and services, these tools often lack the security measures of approved IT solutions. This gap can lead to sensitive data being exposed or stolen.

2. Noncompliance with regulations

‍Many industries, from finance to healthcare, have strict data protection laws and compliance standards. Shadow IT can easily bypass these regulations, resulting in hefty fines and legal repercussions. For instance, storing company data in personal cloud accounts without proper encryption or backup protocols can violate data protection regulations.

3. Increased attack surface

‍Shadow IT introduces numerous entry points for cyber attackers, many of which are unknown to the IT department, resulting in nearly 1 in 2 cyber attacks stemming from Shadow IT. Without visibility into these unauthorised tools and services, it becomes nearly impossible to secure them effectively, significantly increasing the organisation’s vulnerability to cyberattacks.

Understanding these security risks is crucial for developing strategies to mitigate them and protect the organisation’s data integrity.

Why is Shadow IT a growing problem?

The prevalence of Shadow IT is on the rise, and several key factors contribute to this growing issue:

1. Adoption of cloud-based services

‍The ease and convenience of cloud-based applications make them a popular choice for employees looking to enhance their productivity.

However, this often happens without IT's knowledge, creating a blind spot in the organisation's security framework. And when you consider that 65% of all SaaS applications accessed in business are Shadow IT, the scope of the issue quickly becomes apparent.

2. Employee productivity and flexibility

‍Employees often turn to Shadow IT solutions to bypass bureaucratic delays associated with getting new tools approved by the IT department.

These tools can provide quick fixes that enhance productivity and flexibility, but they also introduce risks as they are not vetted for security.

3. Impact of remote work and BYOD policies

‍The shift to remote work and the Bring Your Own Device (BYOD) trend have exacerbated the Shadow IT problem.

Employees working from home or using personal devices are more likely to use unauthorised applications to get their job done, further complicating the IT department's ability to monitor and secure the organisation's digital environment.

The increasing reliance on Shadow IT underscores the need for organisations to adopt strategies that balance employee autonomy with robust security measures.

How can security teams mitigate Shadow IT?

Security teams face a significant challenge in managing Shadow IT, but there are effective strategies to mitigate the associated risks:

1. Educating employees on IT policies

‍One of the most effective ways to combat Shadow IT and data security is through employee education. By making staff aware of the risks and the importance of adhering to IT policies, organisations can reduce the likelihood of unauthorised technology use. Regular training sessions and clear communication about the dangers of Shadow IT are essential.

2. Implementing strong IT governance processes

‍Establishing strong IT governance frameworks ensures that all technology use within the organisation is monitored and controlled. This includes creating policies that require all new software and hardware to be approved by the IT department. Governance frameworks should also involve regular audits to identify and address instances of Shadow IT.

3. Using Cloud Access Security Brokers (CASBs)

CASBs act as intermediaries between users and cloud service providers, providing visibility and control over the use of cloud-based applications. By implementing CASBs, organisations can monitor and manage the use of unauthorised cloud services, ensuring that security protocols are upheld even when employees attempt to use Shadow IT.

The importance of these measures is underscored by the fact that from 2021-2023, 85% of companies globally experienced cyber incidents, with 11% attributed to the unauthorised use of Shadow IT.

By adopting these strategies, security teams can better protect their organisations from the risks associated with Shadow IT.

How can Metomic help?

Navigating the complexities of Shadow IT can be daunting, but Metomic offers robust data security solutions to help organisations manage and mitigate these risks effectively.

  • Identifying and monitoring Shadow IT usage: Metomic provides tools that help IT departments detect the sharing of confidential company documents to unauthorised destinations, like personal email addresses or external applications like ChatGPT. By offering visibility into those actions, Metomic allows your organisation to quickly identify and address potential data leaks, and keep sensitive data secure.
  • Providing insights into usage patterns: Metomic can give you detailed insights into usage patterns. This data allows organisations to understand why employees are turning to unsanctioned tools and helps IT departments to find approved alternatives that meet employees' needs without compromising security.
  • Ensuring compliance and security: With Metomic, organisations can ensure that all data security activities comply with regulatory requirements and internal policies. It continuously monitors for compliance issues, providing alerts and recommendations to address any breaches of security policy promptly. This proactive approach helps to maintain a secure and compliant IT environment, reducing the risk of data breaches and other security incidents.

By leveraging Metomic's capabilities, organisations can effectively manage Shadow IT and protect their data from unauthorised access and other threats.

Want to get better visibility over your digital ecosystem including any Shadow IT your employees might be using? Request a personalised demo of Metomic today to see how we can help your organisation.

Jules Thorpe-Smith

Content Creator

Jules Thorpe-Smith is a Content Creator at Metomic

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