For years, technology departments have struggled to rein in shadow IT- the use of unauthorized devices, software, and services outside of official IT approval.
But the sudden transition to remote work has blown the doors off, allowing shadow IT to spread like wildfire through businesses. Employees used to office networks and equipment have assembled ad-hoc work-from-home setups with little oversight, massively expanding the attack surface for cyber threats.
IT teams must act quickly to shine a light on these new shadow networks and apply policies before this underground technology ecosystem undermines security on a catastrophic scale.
The Rapid Rise of Shadow IT
Shadow IT refers to any hardware, software, or services employees use without IT's permission or knowledge. Before 2020, employees might have used unauthorized collaboration apps, cloud storage, or devices primarily in the office. However, the numbers were relatively small; most employees relied on employer-provided tools and networks on-site.
However, the shift to widespread remote work has drastically changed the landscape, forcing organizations to reconsider what is work from home and its implications for security and IT control.
Today, more people are working from home than ever- many still need access to internal networks. As such, employees have started using personal laptops, tablets, and mobile devices for their daily workflow. Collaborating via Zoom, Slack, and text required free cloud apps and unsanctioned messaging platforms.
Employees are now cobbling together piecemeal solutions to maintain productivity. But these stopgap measures created vast shadow ecosystems of devices and software outside IT control or governance. Off-the-shelf routers, smart home devices, and public WiFi expose work data to risks from the comfort of the living room couch. Consumer messaging apps and storage introduce privacy vulnerabilities and compliance violations.
And the risks aren't hypothetical. This uncontrolled, underground technology sprawl urgently requires IT intervention before the risks become too real. In fact, it’s already estimated that one-third of successful cyber attacks stem from some form of shadow IT application or hardware.
When Shadows Fall: The Security Risks
Consumer-grade solutions rarely meet enterprise security standards. Allowing work files on personal devices or unsanctioned apps introduces several critical dangers:
Data breaches and intellectual property theft: By letting employees access sensitive information from home WiFi, personal laptops, and unauthorized cloud storage, organizations expose passwords, financial models, healthcare records, product designs, or other regulated data to potential theft. Compared to IT-vetted solutions, most consumer tools need more encryption, access controls, or data loss prevention capabilities. Breaches via shadow IT vectors can lead to leaked trade secrets, failed audits, heavy fines for non-compliance, and permanent loss of proprietary algorithms or processes.
Malware infections and network infiltration: Without IT approval or security vetting, shadow IT apps often contain vulnerabilities like malicious scripts, viruses, spyware, or ransomware. By infecting a personal device, cybercriminals can penetrate previously secure networks when that device reconnects on corporate premises. From here, threats quickly move laterally to compromise other on-site systems or launch attacks exploiting Active Directory and cloud credentials.
Compliance violations and legal liability: Highly regulated industries like finance, government, and healthcare have strict controls around permissible devices, apps, data security models, and access tiers. However, employee self-service often subverts these controls, failing to meet legal statutes or industry standards. The result? Failed audits, heavy fines, lawsuits, and substantial reputational damages. Beyond financial consequences, patients or customers may develop long-term distrust after data leaks or compliance failures.
Disgruntled insider threats: While most employees have good intentions, IT visibility limits help minimize insider risk. However, shadow IT allows rogue employees to leak data intentionally while evading monitoring, logging, and access controls in the process. This poses an exceptionally high risk for intellectual property theft.
Facing an environment where work data freely flows across unauthorized vectors, most IT teams feel they've lost control of the security landscape. As remote and hybrid work cements as the new status quo, enterprise security teams must rethink outdated policies and shore up defenses against this uncontrolled technology sprawl.
Casting Light: IT Strategies for Success
Previously siloed as onsite-only resources, IT teams must now secure distributed assets in workers' homes. They also need to meet employee technology expectations shaped by consumer solution convenience. Striking this balance requires both empathy and strategic planning. It could be more straightforward in the world.
Still, here are some steps IT leaders can take to gain control over shadow IT while supporting the flexible work environment employees have come to expect:
Build a Complete Inventory
The first step is getting a handle on what devices and apps currently comprise the shadow ecosystem. Maintain a frequently updated inventory that catalogs all devices, operating systems, software, services, and apps accessing corporate networks and data. This inventory allows you to identify problem areas and high-risk technologies requiring remediation.
Implement Comprehensive Device Management
With a complete inventory, you can then set baselines for security standards. Ensure endpoints meet encryption, VPN, antivirus, and configuration compliance requirements before granting network and data access. Deploy robust mobile device management (MDM) to corporate-liable items paired with mobile application management (MAM) for BYOD devices.
Classify Data and Applications by Risk Level
Not all data requires Fort Knox-style security. Create access tiers so employee devices handle low-risk collaboration while restricting sensitive assets to managed devices. Selectively disabling risky apps and extra vigilance around financials, healthcare records, and other critical data helps limit the damage if there is consumer-grade exposure.
Extend Enterprise-Grade Controls
Where possible, provide employees with secure alternatives to popular consumer apps for collaboration, messaging, and productivity. Microsoft Teams, Box.com, and other business-class options ensure better data protection while discouraging ad-hoc DIY solutions—Disable particularly high-threat services.
Increase Visibility Through Monitoring
Expand network and endpoint monitoring capabilities to identify high-risk behaviors like unauthorized app usage, suspicious logins from odd regions, abnormal resource access or data transfers. Configure alerts to trigger safeguards and quarantines to limit potential incident impacts.
Update Remote Work Policies
Finally, remote and mobile computing policies should be refreshed to address current hybrid work realities while limiting legal liability. Include strong BYOD guidance, app approval procedures, mandatory security training, and other best practices.
Final Word
The sudden shift to remote work has led to a shadow IT explosion, posing serious security risks. Employees who piece together ad-hoc workarounds to maintain productivity unintentionally open dangerous backdoors into company networks and data.
IT teams have an urgent mandate to address this growing chaos before it causes irreparable damage. But cracking down with an iron fist or ignoring the problem is unlikely to work. Employees simply want tools that enable them to perform efficiently. The key is to balance control and flexibility, fostering a culture of security awareness and collaboration that benefits everyone.