What is shadow IT and how can you stop it?

Shadow IT refers to any technology—apps, services, devices, or software—used in a business without the explicit approval of the IT department. It often starts as a well‑meaning attempt to get work done faster, but it creates hidden security gaps and compliance headaches.

Quick Takeaways

• Shadow IT = unauthorized tools used without IT oversight.
• Risks include security breaches, data loss, compliance violations, and hidden costs.
• Common examples: personal cloud storage, unsanctioned messaging apps, BYOD devices.
• Start mitigation with a thorough audit and clear policy.
• Use Cloud Access Security Brokers (CASBs) and employee education to stay ahead.

Frequently Asked Questions

What exactly qualifies as shadow IT?

Any software, service, or device used for work that hasn't been formally approved by your IT team. This includes personal email accounts, third‑party SaaS tools, and employee‑owned devices accessing corporate data.

Why does shadow IT happen?

Employees often turn to shadow IT to fill gaps in official solutions—whether it’s a faster collaboration tool, a feature‑rich app, or simply convenience when the approved option is slow or missing.

What are the biggest security risks?

Unvetted tools may lack encryption, have weak authentication, or miss critical patches, creating entry points for malware and phishing attacks.

How does shadow IT affect compliance?

Regulations like GDPR, HIPAA, or CCPA require controlled data handling. Unauthorized services can store data on unsecured servers, making compliance audits difficult.

Can shadow IT increase costs?

Yes—duplicate subscriptions, individual licenses, and unexpected storage fees add up quickly, often unnoticed by finance teams.

How to mitigate shadow IT in your organization

1. Conduct a comprehensive audit

Use network monitoring and CASB tools to discover unknown applications. Pair this with employee surveys to understand why they’re using those tools.

2. Create a clear shadow IT policy

Define what’s allowed, how to request new tools, and the consequences of non‑compliance. Make the policy easy to find and understand.

3. Improve official IT offerings

Identify gaps that drive shadow IT and enhance your sanctioned solutions—whether that’s faster file sharing, better collaboration features, or mobile access.

4. Implement a BYOD policy

If personal devices are used, set security standards, enforce encryption, and consider Mobile Device Management (MDM) to protect corporate data.

5. Deploy a Cloud Access Security Broker (CASB)

A CASB gives visibility into cloud usage, enforces data‑loss‑prevention policies, and can block risky services.

6. Educate and train employees

Regularly run security awareness sessions that explain the risks of unsanctioned tools and teach the proper request process.

7. Foster open communication

Provide a simple channel for teams to suggest new tools. Appoint “technology champions” in each department to bridge the gap between IT and business units.

8. Establish a formal request workflow

Make it quick and transparent—fast approvals reduce the temptation to go around IT.

9. Monitor continuously and adapt

Technology evolves fast. Review usage reports regularly and update policies to cover emerging tools.

10. Use a controlled sandbox environment

Allow teams to test new solutions under IT supervision before full deployment.

Why email security matters in a shadow IT world

Unapproved email sending services are a common shadow IT scenario. They can expose your brand to phishing and impersonation attacks. Palisade’s automated DMARC solution gives you full visibility into every sender using your domain, even the hidden ones, and helps you enforce authentication to stop spoofing.

Secure your email ecosystem and uncover hidden sending services with Palisade Enforce. Schedule a demo today.