Shadow IT – The Cyber Risk Growing Inside Every Business

Most organisations today are investing heavily in security. Firewalls, MFA, endpoint protection and monitoring have all become standard. Yet one of the biggest risks is often the one nobody can see: Shadow IT.

Shadow IT refers to any software, apps or cloud services that employees start using without approval from the business. It usually begins with good intentions. Someone wants to work faster or solve a problem, so they sign up for a free tool like Canva, Dropbox, Trello, WhatsApp Web or ChatGPT. The problem is that data begins leaving the business without oversight.

This creates real risk. Files containing client information can be stored in personal accounts. Data can be downloaded to unmanaged devices. Sensitive internal conversations can take place on unsecured platforms. Even one employee using an unapproved tool can open a gap that an attacker can exploit.

Why is Shadow IT growing so fast?

• Free SaaS tools are everywhere

• Remote work has pushed people to find their own solutions

• Software is easy to access, with no IT involvement needed

• Employees assume that anything online must be secure

The challenge is that most organisations do not know what tools are being used or where their data is going.

The impact can be serious:

• Data leaving secured systems

• Breach of GDPR or contractual compliance

• Loss of visibility for IT teams

• Weak authentication or no MFA

• Business data stored in personal accounts

• Higher risk of phishing or account compromise

What can businesses do?
The answer is not banning tools. People will always find ways to work the way they want. The solution is visibility and control. With the right monitoring, policies and training, companies can allow flexibility while protecting their data.

An effective approach includes:

• Monitoring SaaS apps connected to Microsoft 365

• Clear policies on approved tools

• Centralised identity and access management

• Educating users on why these controls matter

• IT teams working with staff, not against them

Shadow IT is a security issue, but it is also a cultural one. When technology teams provide safe, approved alternatives, employees do not need to look elsewhere.

Businesses that take control of their SaaS environment reduce risk, improve compliance and protect their data. In a world where most cybersecurity incidents start with identity or cloud access, visibility is no longer optional.

If you would like support bringing your SaaS estate under control, strengthening compliance or gaining better visibility across cloud apps, we would be happy to help.