The Enemy Within: How Insider Threats Can Ruin Organizations

Like a Trojan horse, an insider threat is already within the organization and waiting for the perfect opportunity to unleash chaos.

Insider threats are a major concern for organizations of all sizes. These threats can come from employees, contractors, or other individuals who have access to sensitive information and systems within the organization. When these individuals act maliciously, they can cause significant damage to the organization’s reputation, finances, and operations. 

Research has revealed that hackers are offering money in return for employees to divulge sensitive information on an organization’s network and systems. According to new data from IBM, incidents caused by malicious insiders are the most expensive, costing an average of $4.90 million. That’s 9.6% higher than the global average cost of $4.45 million per data breach! The main reasons for these insider threats are financial gain and fraud.

The recent hacking incident at Afriq Arbitrage System, a digital currency trading platform, illustrates the devastating effects of insider threats. One of the company’s own employees, along with some accomplices, committed the crime. Even though the platform had security measures in place to protect against attacks from the outside, it wasn’t safe from an attack from within. The malicious insider was a web developer who had access to sensitive information. He and his partners took control of the platform and stole millions of dollars. It just goes to show that sometimes the biggest threats can come from within.

Apart from financial gains, insider threat actors can also steal or leak confidential information, like trade secrets, financial data, or personal information about employees or customers. When this information gets out, it can really hurt the organization’s reputation and even lead to legal and financial problems. For example, an Air National guardsman recently leaked sensitive Pentagon documents that could have undermined US security intelligence operations. 

Insider threats can also harm an organization by sabotaging its operations. This can include things like deleting important data, introducing malware into the company’s systems, or messing up critical processes. These actions can cause a lot of downtime and lost productivity, which can really hurt the company’s bottom line. For instance, just three days after getting his last paycheck, an executive at a healthcare organization used a fake account he had set up while he was still employed to change 115,000 records, delete 2,400 more, and even disrupt the shipment of personal protective equipment needed during the COVID-19 pandemic. 

Insider threat actors can also cause harm to an organization by working with people outside the company. For example, an employee might team up with a competitor to give them sensitive information or to undermine the company’s competitive advantage. This kind of collusion can be hard to catch and can really hurt the organization. In 2022, a Yahoo employee with administrative permissions stole 570,000 pages of source code on the day he quit to go work for another company.

These incidents really show how important it is for organizations to take steps to prevent insider threats. While there’s no surefire way to stop insider threat actors from hurting an organization, there are things a company can do to protect itself. One way is by doing thorough background checks on employees and contractors before giving them access to sensitive information and systems. 

To keep insider threats at bay, companies need to have strong security measures in place and keep an eye on their systems and employees for any unusual activity. They should also have strict controls on who can access what and keep track of what users are doing to catch any suspicious behavior. Additionally, companies should invest in tools that can help them protect, encrypt, backup, and recover their sensitive data.

Another way to prevent insider threats is by fostering a positive work culture that values integrity and ethical behavior. Companies can do this by having regular training and awareness programs that teach employees about the importance of keeping sensitive information safe and what can happen if they engage in malicious activities. 

The hacking incident in Afriq and other examples serve as a stark reminder of the damage insider threats can cause. It is crucial for businesses and organizations to take steps to prevent these threats and protect their sensitive information and systems. By having strong security measures in place and creating a positive work environment, organizations can lower the risk of insider threats and keep their assets safe.