Shadow IT Examples: What They Are, Risks & Solutions
Understanding Shadow IT
Shadow IT occurs when employees use technology like cloud services and personal devices without the oversight of the IT department. These tools, including productivity apps and unauthorized software, are often adopted to improve workflow efficiency. Yet, this practice can lead to serious security risks, such as data breaches and the exposure of sensitive data, making it difficult for IT teams to maintain control. Understanding and managing Shadow IT is essential for organizations to mitigate these risks and protect their operations.
Risks Associated with Shadow IT
Shadow IT introduces a range of security risks that can significantly affect a company’s operations. Without oversight from the IT department, these risks can quickly escalate, compromising both critical data and system integrity.
- Data Breaches: Increased exposure of sensitive data due to unmonitored apps and services.
- Compliance Issues: Use of unauthorized software can lead to violations of data protection regulations.
- Security Gaps: Lack of visibility into shadow IT creates vulnerabilities in the security framework.
- Loss of Data Control: IT departments struggle to maintain oversight of critical and sensitive data.
- Operational Inefficiencies: Duplicative or unapproved tools can disrupt workflow and waste resources.
- Unauthorized Access: Without proper security protocols, shadow IT can enable unauthorized personnel to access critical data.
Common Shadow IT Examples
Shadow IT includes a range of tools that employees use without the approval of the IT department, often to improve efficiency but at the cost of security. Below are the most common types of shadow IT.
1. Cloud Storage Tools
Services like Google Drive and Dropbox offer employees easy access to store and share files across devices. However, when these tools are used without the IT team's authorization, they create a considerable risk. Sensitive files can be uploaded to these platforms without proper encryption, exposing the organization to data breaches.
Additionally, IT loses visibility into where critical data is stored, making it difficult to enforce security policies or retrieve information if an employee leaves the company. Unapproved cloud storage services can also lead to compliance issues, especially in industries with strict data protection regulations.
2. Messaging and Collaboration Apps
Applications like Slack, WhatsApp, and Zoom have become the norm for team communication, especially in remote or hybrid work environments. However, without IT oversight, these tools can create significant security gaps.
Sensitive conversations or files shared on these platforms can be intercepted or accessed by unauthorized individuals if proper security measures like encryption and access control are not enforced. Implementing effective Shadow IT discovery can help IT departments identify these unapproved tools and take necessary precautions to secure communications.
3. Productivity Software
Tools such as Trello, Asana, and Notion are designed to streamline project management and team collaboration. While they increase efficiency, their unsanctioned use can create challenges for the IT department. Employees may store sensitive data within these tools, which might not have the same level of security controls as the company’s approved systems.
This can lead to unauthorized access or data breaches, especially if users are sharing project boards or tasks with external collaborators. Furthermore, these tools often lack centralized oversight, making it difficult for the IT department to ensure that data is stored securely or properly backed up.
4. File Sharing Services
Sharing large files is a common necessity in many organizations, but when done through unapproved services, it can lead to significant security concerns. Without IT oversight, sensitive or proprietary information may be transferred through platforms that lack encryption or proper security controls.
This makes the data vulnerable to interception or unauthorized access. Tools like WeTransfer and Box are frequently used but might not align with the company’s security protocols, increasing the risk of data breaches or the potential loss of intellectual property.
5. Unauthorized SaaS Applications
Creative tools like Canva or survey platforms like SurveyMonkey are frequently used by marketing and design teams. While they are convenient, their unsanctioned use can introduce security risks. Employees may store client data, design assets, or other sensitive data on these platforms, which are often not vetted by IT for security compliance.
Additionally, these tools typically operate outside the organization’s approved software list, making it harder to apply security controls such as identity management, encryption, or data backups, which increases the risk of data breaches. The rising use of shadow apps further complicates IT departments' ability to maintain control over these platforms.
6. AI-Powered Tools
With the rise of AI-driven solutions like ChatGPT, Jasper AI, and DALL·E, employees are increasingly using these tools for content generation, code creation, or design tasks. However, these AI tools can pose serious security risks if used without IT oversight.
Employees may unintentionally input sensitive data into these tools, which are often hosted on external servers that lack the necessary security measures to protect the data. AI-powered tools can lead to compliance violations if they do not adhere to company-specific regulations for data handling, further worsening the risks posed by shadow IT.
Industry-Specific Shadow IT Examples
Different industries face unique challenges when it comes to managing shadow IT. Here are some examples of how shadow IT appears across sectors, each posing its own set of risks.
1. Healthcare
In the healthcare industry, using unapproved medical apps or software can put patient data at risk. Healthcare professionals may rely on mobile health apps or cloud-based platforms to manage patient information, often without following IT’s security guidelines.
- Security Risks: This practice can lead to breaches of regulations such as HIPAA, which mandate the protection of sensitive health data. Without IT oversight, encrypting and securely storing critical data becomes difficult, exposing healthcare organizations to data leaks and compliance violations.
2. Finance
In finance, employees often use external financial planning tools to streamline tasks. These tools, while efficient, can create significant compliance risks, especially in industries governed by regulations like SOX or GDPR.
- Security Risks: By using unsanctioned software, sensitive financial data such as client records or transaction details may be left unprotected. This lack of IT control makes it harder to identify security risks, increasing the likelihood of data breaches or fraud.
3. Education
Teachers and administrators frequently use unauthorized learning platforms to manage assignments and communicate with students. While these tools can enhance learning, they often fall outside the institution’s IT framework, leading to security concerns.
- Security Risks: Student data privacy is particularly at risk, as these platforms may not comply with regulations such as FERPA. The absence of security protocols increases the potential for unauthorized access to student records, leaving institutions vulnerable to data leaks.
How to Manage Shadow IT with Reco
Effectively managing shadow IT requires comprehensive visibility into the tools employees use and the risks they introduce. Reco’s platform is designed to help businesses detect and mitigate shadow IT by providing full control over unapproved applications and data flows. Here are the key ways Reco helps organizations manage shadow IT:
Conclusion
Shadow IT poses a real and growing threat to businesses. From data breaches to compliance challenges, there are way too many risks when employees use unauthorized tools. As companies adapt to fast-paced environments, managing these risks becomes essential. With Reco, organizations can regain control, monitor shadow IT activities, and protect sensitive data by implementing strong security protocols. Tackling shadow IT head-on helps businesses stay safe while keeping things efficient, making sure the IT team can protect operations without getting in the way of innovation.
