
Shadow IT, also called grey IT, refers to devices, software and cloud services used for business purposes without being known to or managed by the IT and security teams. Because these assets sit outside asset management and policy, they are not patched, monitored or backed up in the usual way.
Shadow IT usually grows because people need to get work done and the approved tools are slow or missing. Good mitigation combines discovery with offering usable, approved alternatives.
Unknown assets are a common source of leaks and break-ins. Data copied to an unmanaged cloud account can be exposed without anyone noticing, and a forgotten server with an old login page is an easy target. Shadow IT often first becomes visible from the outside: in leaked credentials for an unapproved service, in data offered for sale, or in an external scan of the attack surface. Monitoring services discover internet-facing assets that are missing from the inventory.
Sources: NCSC: Shadow IT