2 - 2026 - Citynet

When most businesses think about cybersecurity risk, they picture hackers breaking in from the outside.

But one of the fastest-growing risks isn’t external at all. It’s happening inside your organization…quietly, unintentionally, and often with good intentions.

It’s called Shadow IT.

And it’s growing faster than most businesses realize.

What Is Shadow IT?

Shadow IT refers to any software, app, cloud platform, or digital tool that employees use without formal IT approval or oversight. It can include:

Personal Dropbox or Google Drive accounts
Personal Gmail used for work communication
Free file-sharing platforms
Unapproved project management tools
Messaging apps
AI tools like ChatGPT used to upload company information
Browser extensions that access company data

Most of the time, employees aren’t trying to bypass security. They’re trying to be productive.

But productivity shortcuts can create serious security blind spots.

Why Employees Use Unapproved Apps

Shadow IT often grows because:

Approved tools feel slow or restrictive
Employees work remotely or on personal devices
Teams need quick collaboration solutions
Free versions of software are easy to download
AI tools provide instant answers

When official processes lag behind business needs, employees find their own solutions.

And those solutions rarely include enterprise-level security controls.

How Data Leaves the Company Without Anyone Noticing

The real risk of Shadow IT isn’t just unapproved apps. It’s data exposure. Sensitive information can quietly move outside your secure environment:

Client lists uploaded to personal cloud storage
Financial spreadsheets shared via personal email
HR documents stored in free file-sharing accounts
Contracts pasted into AI tools for editing
Passwords saved in unsecured browser extensions

Once that data leaves your managed environment, you lose:

Visibility
Access control
Audit trails
Encryption oversight
Backup protection

And in many cases, IT doesn’t even know it happened.

The Compliance and Cyber Insurance Risk

Shadow IT isn’t just a technical issue, it’s a compliance issue. For businesses subject to:

Financial regulations
Healthcare privacy laws
Contractual security obligations
Cyber insurance requirements

Unapproved data handling can create serious consequences. Cyber insurance applications increasingly ask about:

Data governance controls
Access management policies
Monitoring capabilities
Security awareness training

If sensitive data is stored outside approved systems, businesses may struggle to demonstrate compliance.

AI Tools and the New Wave of Shadow IT

Artificial intelligence tools have accelerated the Shadow IT problem. Employees may upload:

Client data
Financial projections
Internal documentation
Proprietary content

Without understanding how that data is processed, stored, or retained.

While AI tools can be powerful productivity enhancers, they must be used with clear policies and guardrails.

Otherwise, organizations risk exposing intellectual property and confidential information.

Why Traditional Security Tools Don’t Catch Shadow IT

Many businesses believe their firewall or antivirus software will prevent this kind of risk.

But Shadow IT often bypasses traditional perimeter defenses because:

It happens in approved web browsers
It uses legitimate SaaS platforms
It involves employee credentials
It occurs over encrypted HTTPS traffic

Without monitoring, logging, and policy enforcement, these activities can remain invisible.

How Managed IT Brings Visibility and Control

The solution isn’t banning every new app.

It’s building visibility, governance, and education around technology use.

A proactive managed IT partner helps organizations:

Gain Visibility

Monitor network traffic and SaaS usage
Identify unsanctioned applications
Track abnormal data transfers

Implement Access Controls

Enforce least-privilege permissions
Centralize identity management
Require multi-factor authentication

Establish Clear Policies

Acceptable use guidelines
AI usage policies
Approved tool lists

Educate Employees

Through security awareness training, employees learn:

Why certain tools pose risks
How data should be handled
When to request approved alternatives

Shadow IT thrives in environments without visibility. It shrinks in environments with structured oversight.

Citynet Can Help

Turn technology into a competitive advantage — not a hidden risk. Citynet delivers the visibility, governance, and security your organization needs to grow with confidence.

Request a Managed Services Consultation Today.

(And It’s Not Their Fault)

When businesses think about cybersecurity risk, they often picture hackers, ransomware, or sophisticated phishing attacks. But one of the most common — and overlooked — security risks starts on day one:

A new employee.

Not because they’re careless.
Not because they’re malicious.
But because onboarding and offboarding processes often leave dangerous gaps.

If those gaps aren’t managed properly, they can quietly expose your organization to unnecessary risk.

Why New Employees Create Security Risk

Every time someone joins your team, access expands:

Email accounts
File shares
Cloud applications
CRM systems
Financial platforms
Remote access tools
Administrative permissions

Without structured processes, access can quickly spiral into what security professionals call access sprawl — more permissions than necessary, granted too quickly, and rarely reviewed. Over time, this creates hidden vulnerabilities across your organization.

Access Sprawl: When Permissions Multiply

In many businesses, new hires are given access “just in case” they might need it.

The problem?

Those permissions are rarely revisited.

Employees change roles. Responsibilities shift. Projects end. But access often remains.

The result:

Too many people with elevated permissions
Sensitive data accessible to unnecessary users
Increased risk if credentials are compromised

The principle of least privilege, giving users only the access they truly need, is often missing in growing organizations.

Shared Passwords and Informal Workarounds

It’s more common than most leaders realize:

Shared logins for software tools
Sticky notes with passwords
Credentials stored in spreadsheets
Generic “admin” accounts used by multiple people

These practices may seem harmless in a busy workplace, but they eliminate accountability and create major security blind spots.

If a breach occurs, there’s no way to determine who accessed what — or when.

Former Employees with Active Access

One of the biggest risks isn’t new employees, it is former ones. When offboarding processes aren’t tightly controlled, former team members may retain:

Email access
VPN or remote login credentials
Cloud application permissions
Shared drive access
Administrative privileges

Even if the individual has no malicious intent, dormant accounts are prime targets for attackers.

Cybercriminals actively scan for unused credentials and orphaned accounts because they’re easier to exploit.

Shadow IT: The Tools IT Doesn’t Know About

New employees often bring their own habits and tools:

Personal file-sharing apps
Unapproved project management platforms
AI tools
Messaging apps
Personal cloud storage

Without visibility and policies in place, sensitive company data can quietly move outside your secure environment. This is known as shadow IT — and it grows quickly in fast-moving organizations.

Phishing: The First Test Most Employees Fail

Even well-meaning employees can fall victim to phishing emails — especially during their first few weeks on the job when they’re unfamiliar with internal processes.

Attackers often target new employees because:

They don’t recognize leadership names
They aren’t familiar with payment workflows
They want to make a good impression
They respond quickly to authority

Without proper security awareness training, the risk increases significantly.

How Managed IT and Security Training Close the Gaps

Technology alone doesn’t solve onboarding and offboarding risk. Processes do.

A proactive managed IT partner helps businesses build structured, repeatable systems that protect the organization at every stage of the employee lifecycle. This includes:

Structured Onboarding Checklists
Role-based access controls
Least-privilege permissions
Secure device configuration
MFA enrollment

Secure Offboarding Procedures

Immediate credential deactivation
Access removal across all platforms
Device recovery and reset
Account audit verification

Ongoing Access Reviews

Regular permission audits
Administrative account monitoring
Dormant account cleanup

Security Awareness Training & Phishing Simulations

Citynet offers comprehensive security awareness training that helps employees recognize and report threats before damage occurs. Through simulated phishing campaigns, ongoing education, and measurable reporting, businesses gain:

Reduced click rates over time
Increased threat reporting
Stronger security culture
Documentation to support compliance and cyber insurance

Instead of hoping employees make the right choice, organizations can actively train them to do so.

Your Employees Aren’t the Problem. Unmanaged Processes Are

New employees are not a liability. In fact, they’re one of your greatest assets.

But without structured onboarding, offboarding, and security awareness programs, businesses unintentionally create risk at the exact moment they’re trying to grow.

Cybersecurity isn’t just about firewalls and antivirus software. It’s about managing people, permissions, and processes with intention.

Citynet Can Help

Citynet helps businesses build secure onboarding and offboarding systems, implement role-based access controls, and deliver ongoing security awareness training that reduces human risk over time.

Because the strongest cybersecurity strategy protects both your technology and your people.

Connect with us and let’s start a conversation on how we can help.