Data protection regulations require businesses to assess all potential threats to the sensitive data they store or manage. While most organizations focus heavily on external cyber threats, many overlook a critical danger lurking within — insider threats. Therefore, it is vital for businesses to develop strategies to effectively spot insider threats before they cause harm.
Despite the abundance of cybersecurity solutions on the market, few can effectively spot insider threats before they cause damage. These threats originate from individuals within your organization who have legitimate access to your systems and data. Whether intentional or accidental, insider threats can lead to devastating breaches and regulatory consequences.
According to Verizon’s 2020 Data Breach Investigations Report, 30% of breaches involved internal actors. That’s a significant portion — and a clear sign that businesses must take insider threats seriously.
In this blog, we’ll help you understand how to identify insider threats, recognize early warning signs, and implement a defense strategy that satisfies compliance requirements.
What Are Insider Threats?
Insider threats refer to security risks that come from individuals within your organization — employees, contractors, former staff, business partners, or board members — who have access to sensitive data or systems. These insiders can compromise your data either maliciously or negligently.
Types of Insider Threats You Must Spot
1. Malicious Insider
A malicious insider is someone who intentionally misuses their access for personal gain or revenge. According to the Ponemon Institute and IBM’s Cost of Insider Threats: Global Report 2020, 23% of insider incidents were criminal in nature, costing companies an average of $4.08 million annually.
2. Negligent Insider
A negligent insider is typically an employee who unintentionally causes a breach by ignoring security protocols or falling victim to phishing attacks. The same report found that 63% of insider-related incidents stemmed from negligence, with an average cost of $4.58 million per year.
How to Spot Insider Threats Early
Spotting insider threats before they escalate is crucial. While it’s not always easy, there are behavioral and digital warning signs that can help you identify potential risks.
Behavioral Red Flags
Watch for employees or stakeholders who:
- Attempt to bypass security controls
- Spend time in the office during off-hours without a reason
- Display disgruntled or hostile behavior
- Deliberately violate company policies
- Talk about leaving the company or seeking new opportunities
Digital Red Flags
Monitor for unusual digital activity such as:
- Accessing or downloading large volumes of data
- Trying to access data unrelated to their role
- Using unauthorized devices to store or manage data
- Copying or sharing sensitive data externally
- Browsing sensitive folders without a clear purpose
- Deviating from their normal digital behavior patterns
How to Mitigate Insider Threats and Stay Compliant
To avoid regulatory penalties and protect your business, you must demonstrate that you’ve taken proactive steps to spot and mitigate insider threats. Here’s how:
- Identify and document where sensitive data resides
- Control access based on roles and responsibilities
- Monitor behavior and set up alerts for anomalies
- Include insider threat parameters in your risk assessments
- Train employees regularly on cybersecurity awareness
- Create an incident response plan specifically for insider threats
Taking these steps not only strengthens your cybersecurity posture but also shows regulators that your business is serious about data protection and compliance.
Make Insider Threats a Priority
Cyberthreats have surged in the “new normal,” and insider threats are becoming increasingly common. Don’t wait for a breach to take action. Make spotting insider threats a priority at your next management meeting.
You’re not alone in this fight. Let us help you build a robust defense against insider threats and avoid costly regulatory action. Contact us today to learn how we can support your cybersecurity strategy.
Charles Lobert, has been in the Detroit Metro Area’s IT industry for over two decades & with VCS since ’04. Throughout the years, Lobert has held nearly every position at VCS & is responsible for several major organizational shifts within VCS.