The term shadow IT refers to a practice where employees use unauthorized or unapproved IT resources, such as devices, software, applications, and services. 

Generally, businesses require their employees to get approval from the IT department before using any IT resource.  In shadow IT, employees use these IT systems without the approval of the organization’s IT department. 

Employees often turn to these unsanctioned tools to enhance productivity, streamline tasks, or simply because they are more comfortable with them.

While this might seem harmless at first, it poses significant risks to your organization’s security and compliance.

Why Shadow IT Happens

You might wonder why employees bypass official channels and opt for unapproved technology. 

The reasons are varied. 

Sometimes it’s due to the perceived complexity or inefficiency of official tools. 

Other times, it’s because employees are unaware of the risks involved or believe their preferred tools offer better functionality. 

Whatever the reason, understanding the root cause is the first step toward mitigating the risks associated with Shadow IT.

Cybersecurity Risks of Shadow IT

Shadow IT can be a double-edged sword. 

On one side, it can boost efficiency and innovation. On the other, it can open the floodgates to a host of cybersecurity vulnerabilities. 

Here are some of the key risks shadow IT presents:

Data Breaches

Unapproved tools often lack the robust security measures required to protect sensitive business data. 

When employees use these tools, they may inadvertently expose your organization to data breaches. Hackers are always on the lookout for weak points, and Shadow IT can provide them with an easy entry.

Compliance Violations

Many industrial sectors face tough regulatory requirements whenit comes to data security and user privacy. 

Using unapproved technology can lead to non-compliance, resulting in hefty fines and legal repercussions. It’s essential to ensure that all tools and applications adhere to these regulations.

Increased IT Costs

When employees use unauthorized tools, it can lead to redundancy and inefficiencies. 

Your IT department might end up spending more time and resources trying to manage and secure these disparate systems, leading to increased operational costs.

How to Identify Signs of Shadow IT in Your Organization

Detecting Shadow IT can feel like looking for a needle in a haystack, but it’s not impossible. 

Here are some telltale signs to watch out for:

Unusual Network Activity

One of the first indicators of Shadow IT is unusual network traffic. 

If you notice a spike in data usage or connections to unfamiliar external servers, it might be time to investigate. Monitoring network traffic can help identify unauthorized applications and devices.

A cybersecurity company specializing in network security service can help you identify shadow IT traffic and even design and implement a secure network.

Discrepancies in IT Asset Inventories

Regular audits of your IT assets can reveal discrepancies. 

If you find software or devices that weren’t procured through official channels, it’s a sign that Shadow IT might be at play. Keeping an up-to-date inventory is crucial for this purpose.

Employee Feedback

Sometimes, the best way to uncover Shadow IT is to go directly to the source. 

It is a good idea to encourage open communication with your employees about the tools they use. For example, you could conduct surveys or informal check-ins to gather feedback on their technology preferences and challenges.

Tools and Methods for Discovering Unapproved Applications and Devices

Now that you know what to look for, let’s explore some effective tools and methods to help you discover and manage Shadow IT within your organization.

Network Monitoring Tools

Network monitoring tools like SolarWinds, Wireshark, and Nagios can provide insights into your network traffic. These tools can detect unusual activity and pinpoint the use of unauthorized applications. It is a good practice to continuously monitor your network to stay ahead of potential threats.

Cloud Access Security Brokers (CASBs)

CASBs act as a gatekeepers between your organization and cloud service providers. They offer visibility into cloud app usage and can enforce security policies. 

Tools like Microsoft Cloud App Security and Symantec CloudSOC can help you detect and manage Shadow IT in cloud environments. Plus, consider engaging a cloud security service to do a complete shadow IT risk assessment and audit.

Endpoint Detection and Response (EDR) Solutions

EDR solutions such as CrowdStrike and Carbon Black provide advanced threat detection and response capabilities. 

These tools monitor endpoints for suspicious activities and can help identify unauthorized software installations.

Regular Audits and Employee Training

Conducting regular IT audits is essential for identifying unapproved technology. 

Also, consider educating your employees about the risks associated with Shadow IT, and encouraging them to use approved tools can go a long way in mitigating these risks. 

Regular training sessions and clear communication can foster a culture of security awareness.

Final Thoughts

Shadow IT can pose significant risks to your organization’s security and compliance, but with the right strategies and tools, you can effectively manage and mitigate these risks. 

Use the tips provided above to identify Shadow IT, use advanced detection tools, and foster a culture of transparency and education. This will ensure your business remains secure and efficient. 

Remember, staying vigilant and proactive is key to keeping your organization safe from the shadows.