What is Shadow IT?

Shadow IT is when employees use digital tools, applications or services such as cloud storage, messaging apps, or project software, without the approval or knowledge of their organization’s IT or security team.

Which of the following best describes shadow IT?

Shadow IT refers to employees using software, cloud services, or devices without getting approval from their organization’s IT or security team.

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An Example Of Shadow IT

You need a better way to manage customer feedback, so you sign up for a free survey platform without checking with IT. Everything works smoothly until you realize it's storing names, emails, and responses overseas. Sensitive customer data now sits in an overseas location, potentially putting your organization at risk.

Why Shadow IT Is A Problem

As seen in the prior example, Shadow IT can introduce serious risks. It creates security gaps, exposes sensitive data, can result in the violation of compliance or regulatory requirements. These issues often go unnoticed until it’s too late.

Which of the following is an example of Shadow IT?

Shadow IT happens when employees use unapproved apps, even with good intentions. In this case, a task management tool may help productivity, but without IT approval, it doesn't undergo a formal review, resulting in a weakened security posture and opening the door for potential data exposure, regulatory, or compliance-related risks.

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Security Gaps

Unauthorized applications create blind spots. Without visibility, IT and security teams can't secure systems or detect weaknesses. This makes it easier for threats to go undetected and harder to respond when something goes wrong.

Data Exposure

Unvetted tools may misuse, mishandle, or even claim ownership of user data. When privacy policies are vague or hidden in fine print, sensitive information to be exposed, sold, or lost without the user realizing.

Why does Shadow IT create security gaps within an organization?

IT teams cannot protect what they do not know about. When employees use tools without approval, those tools bypass security checks, updates and monitoring. This creates hidden vulnerabilities that attackers can exploit, increasing the risk of a breach.

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Compliance Violations

Using software or services that haven’t been formally approved can breach data privacy or sovereignty laws, especially if information is stored in regions with conflicting regulations. This puts the organization at risk of legal penalties, fines, or reputational damage, even if the user had no harmful intent.

What is one major compliance risk of using unapproved tools in the workplace?

When tools store data in regions with different legal protections, it can trigger compliance violations. Even if the user did it by accident, the organization may still face legal trouble, including audits, fines, or penalties.

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What is the BIGGEST risk of using external apps or services without IT oversight?

Apps used without IT approval might include vague or predatory data policies, leading to accidental data exposure, misuse, or loss.

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Is the following statement True or False:
Some apps include terms that give providers access to, or ownership of, your uploaded data.

Some apps and tools include hidden terms that allow the provider to access or even claim ownership of uploaded data. Without proper review, users may unknowingly expose sensitive information, increasing the risk of misuse or loss. This is why oversight and policy checks are essential before using new platforms.

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How to Reduce Risk

Shadow IT might feel harmless, even helpful, but that convenience can come at a cost. Here are three simple steps to help you avoid putting your organization at risk.
Understanding what Shadow IT is, and how it works, is your first defense. Knowing the risks helps you think twice before downloading tools that might create vulnerabilities for you or your organization.
Before using a new app or service for work, check your company’s policies. What seems helpful could open the door to serious security issues if it's not been thoroughly reviewed and approved.
If you find a tool that could boost your productivity, run it past your IT or security team. They’ll check if it’s safe and help roll it out the right way, so you get the benefits while minimizing the security risks.

You’ve found a new tool that could really improve your workflow. What should you do?

Always consult IT. They’ll assess the tool for security risks and ensure it’s implemented safely and in line with company policy.

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The Importance of Understanding Shadow-IT

Understanding Shadow IT helps you prevent security gaps, data leaks, and compliance issues. By staying aware, following policy, and involving IT, you reduce risk and strengthen your defenses. Make smart choices, stay secure, and help keep your organization safe.