Every organization wants their employees to have the tools they need to work faster, smarter, and with fewer obstacles. Yet as technology choices multiply, so do the ways in which teams bypass IT in pursuit of convenience. From downloading unsanctioned apps to spinning up cloud services without consultation, this quiet trend, known as shadow IT, has become a growing blind spot in modern business. Although it may help employees stay productive, if left unaddressed, it can open doors to serious risk.
What Is Shadow IT?
Shadow IT refers to any software, service, or device used inside a business without explicit approval from the IT department. It is far more common than many leaders realize: research from Cisco reveals that 80% of end users are using software not cleared by IT, and fewer than 10% of enterprises truly understand the scope of shadow IT use in their organizations.
Common shadow IT examples include:
-
Productivity apps like Asana or Trello
-
Cloud file-sharing and editing tools such as Dropbox, Google Docs, or OneDrive
-
Messaging and conferencing platforms like Slack, Skype, or Zoom
-
Personal email accounts used to send work documents
Employees often adopt these tools for legitimate reasons: speed, familiarity, or simply because the official alternatives are clunky. Remote work and BYOD policies have only amplified this trend. It’s not just individuals, either entire teams and even department leaders sometimes subscribe to new SaaS platforms without looping in IT, either to avoid delays or because they underestimate the risks.
For instance, a marketing department under pressure to quickly launch a campaign might adopt a third-party analytics platform on their own, bypassing IT to avoid weeks of approval. Or a project team facing tight deadlines could start using a new collaboration app because the official system feels too rigid. In both cases, the intent isn’t malicious. Rather, the desire is to meet business goals. Despite this, the lack of IT oversight leaves the organization exposed to danger.
Why Is Shadow IT Considered a Security Risk?
Shadow IT may feel harmless when it’s just an app or service helping employees work faster, but the hidden costs can be significant. When tools and platforms operate outside IT’s oversight, the organization loses visibility and control, which are both essential for keeping systems secure and compliant. What starts as a shortcut for convenience can quietly become an open door for attackers, compliance violations, or operational inefficiencies.
Below are some of the most pressing shadow IT risks to keep in mind:
Loss of IT Control and Visibility
Without IT approval, apps and services are invisible to standard monitoring and management. That means security teams may not know which systems store sensitive data, how they’re configured, or whether they have basic protections in place.
When dozens (or even hundreds) of untracked apps enter the picture, the attack surface grows beyond what IT can realistically manage. This lack of visibility creates blind spots where vulnerabilities thrive, leaving the organization unprepared for threats that target those gaps.
Risk of Data Breaches or Leaks
Unauthorized tools often don’t meet the same security standards as approved platforms. Sensitive files shared over a personal Dropbox or unencrypted chat service could be intercepted or exposed.
Even if employees act with good intentions, shadow IT often lacks strong access controls, encryption, or compliance features, creating a weak link in the organization’s security posture. A single misstep, like sending customer records through an unsecured app, could trigger a data breach with long-term financial and reputational fallout.
Expansion of the Attack Surface
Every new, unmanaged application adds another entry point for cybercriminals. Attackers actively scan for vulnerable services, particularly those set up without IT’s knowledge or configured with default settings. Shadow IT tools often fall into this category, making them a prime target for exploitation.
As the attack surface expands, security teams are left scrambling to defend systems they may not even know exist, reducing their ability to respond quickly when incidents occur.
Compliance Issues
Industries bound by regulations like GDPR, HIPAA, or PCI DSS must maintain strict oversight of where and how data is stored. Shadow IT undermines compliance by moving sensitive information into apps and services that lack proper safeguards or audit trails.
If regulators investigate, an organization may face fines or legal action for failing to protect data, even if the breach originated from an employee’s unauthorized tool. Beyond fines, compliance issues can delay business operations and damage trust with customers and partners.
Disruption of Overall Business Efficiency
While shadow IT often starts as a way to speed things up, it can create inefficiencies in the long run. When data is scattered across unofficial apps, teams lose a single source of truth, leading to duplication, confusion, and errors.
IT departments may also waste valuable time chasing down problems caused by tools they never approved or supported. Instead of streamlining work, shadow IT can clog up processes, fragment communication, and make it harder for employees to collaborate effectively across the business.
Managing Shadow IT Risks
Entirely eliminating shadow IT simply isn’t realistic. Instead, organizations need to focus on bringing it into the light and managing it in ways that reduce risk while still enabling productivity.
-
Leverage modern monitoring tools: Attack surface management platforms and continuous monitoring solutions can scan for unauthorized apps, cloud services, and connected devices across your environment. By mapping hidden assets and flagging risky ones, IT teams can prioritize where to intervene before these tools create security gaps.
-
Strengthen employee communication: Employees often turn to shadow IT because they don’t see the harm, or they feel blocked by slow approval processes. By explaining the real risks and creating open channels for discussion, IT leaders can shift the narrative from “don’t” to “here’s why and here’s how.” Clear training paired with approachable communication helps employees feel comfortable reporting the tools they use.
-
Create a response plan: Shadow IT can surface through monitoring or employee disclosure. Having a plan to respond to these discoveries can mean the difference between chaos and control. A structured approach might include risk scoring for new tools, a decision framework for approval or rejection, and documented next steps if a tool must be phased out. This way, discovery doesn’t stall business operations; instead, it prompts a consistent and predictable response.
-
Conduct regular audits: Periodic audits of apps, SaaS subscriptions, and devices provide IT with a comprehensive view of how teams are really working. These reviews often reveal unmet needs, which can then guide the rollout of safer, approved alternatives. Routine audits not only reduce risk but also help IT proactively support productivity by offering better tools before employees seek their own.
Can Shadow IT Ever Benefit a Company?
Although shadow IT is dangerous, the same qualities that make it risky: speed, flexibility, and accessibility, can also drive innovation and efficiency when harnessed thoughtfully. After all, employees often adopt these tools because they remove barriers, not because they intend to create risk.
Shadow IT can:
-
Reduce costs by using free or lower-priced tools
-
Improve collaboration through easy-to-use communication apps
-
Accelerate innovation by giving teams faster access to resources
-
Deliver a better user experience, especially when official tools are outdated or cumbersome
The key isn’t to stamp it out, but to strike a balance. Organizations that evaluate shadow IT thoughtfully can often find ways to integrate its benefits into sanctioned workflows, giving employees what they need without compromising security.
Take a Proactive Approach to Cyber Risk Management
Shadow IT is a reminder that technology adoption rarely follows a straight line. Employees will always seek tools that make their jobs easier, but those choices shouldn’t come at the expense of security or compliance. By pairing proactive monitoring with strong communication and practical governance, organizations can manage shadow IT risks while still supporting agility and productivity.
Instead of waiting for shadow IT to cause problems, Quest helps organizations gain clarity across their tech stack, close security gaps, and build a foundation for long-term confidence and control. To see how we can help you address shadow IT without slowing your teams down, schedule a conversation with us today.
I hope you found this information helpful. As always, contact us anytime about your risk management needs.
Until next time,
Shawn Davidson
