In early 2022, a Yahoo employee, Qian Sang, exploited his access to confidential information, and stole the company’s AdLearn product minutes after receiving a job offer from a competitor. By the time the breach was discovered, the damage was extensive, costing the company millions in fines, legal fees, and lost business [*].
This incident is not an isolated case. Insider threats are becoming an increasingly common form of cyberattack, and they often strike where organizations are most vulnerable: from within.
Unlike external attacks, which are easier to anticipate and defend against, insider threats are difficult to detect because they originate from individuals who already have legitimate access to the organization’s systems and data.
Whether driven by malicious intent, financial stress, or simple negligence, these threats can be devastating, leading to data breaches, financial loss, and irreparable damage to an organization’s reputation.
What Are Insider Threats?
Insider threats refer to the potential risk posed by individuals within an organization who have access to critical systems, data, or infrastructure. These insiders can be current or former employees, contractors, business partners, or anyone with legitimate access to the organization’s systems and data.
What makes insider threats particularly dangerous is because they leverage authorized access, making them difficult to detect using traditional security measures. These threats can result in data breaches, financial loss, intellectual property theft, sabotage, and damage to an organization’s reputation.
Tesla recently suffered a breach when two former employees leaked the PIIs of 75,000 current and former employees to a German media outlet [*].
Types of Insider Threats
Malicious Insider Threats
These threats originate from individuals who intentionally harm the organization for personal gain, revenge, or out of loyalty to a competitor.
Malicious insiders typically exploit their access privileges to steal sensitive information, sabotage systems, or commit fraud. They operate under various guises, such as disgruntled employees, opportunistic insiders seeking financial reward, or even those acting under coercion or blackmail.
A key characteristic of malicious insiders is their understanding of the organization’s systems and security measures, allowing them to carefully plan and execute their actions without raising immediate suspicion.
For instance, an IT administrator with privileged access to critical systems might create backdoors to exfiltrate data over time, carefully covering their tracks by manipulating logs or using encrypted channels. Alternatively, a salesperson could steal customer data or trade secrets to benefit a competing firm, often justifying their actions as retribution for perceived slights.
Negligent Insider Threats
These threats occur when individuals unintentionally cause harm due to carelessness, lack of awareness, or failure to follow security policies.
Unlike malicious insiders, these individuals do not intend to cause harm, but their actions can lead to serious security incidents. Common examples include employees who fall victim to phishing attacks, mishandle sensitive information, or fail to adhere to password policies.
For example, an employee might unintentionally click on a phishing link, granting attackers access to the organization’s network. Similarly, an employee may accidentally send sensitive data to the wrong recipient due to an auto-complete error in an email.
Such incidents can result in data breaches, financial loss, or compliance violations, especially in highly regulated industries.
Accidental Insider Threats
Accidental insider threats are unintentional actions that compromise security, typically resulting from system errors, misconfigurations, or technical mishaps.
While similar to negligent insider threats, accidental threats are more often linked to flaws in technology or processes rather than human behavior. These incidents can include accidental data deletion, incorrect system settings, or the unintended disclosure of sensitive information.
In most instances, accidental insider threats are overlooked because they stem from unforeseen circumstances rather than deliberate or careless actions. However, the consequences can be just as severe.
For example, a software engineer might inadvertently introduce a bug during a system update that exposes sensitive data, or an automated backup process could fail due to a misconfiguration, leading to data loss.
Why Insider Threats Are Challenging to Detect
Legitimate Access
Traditional security measures, such as firewalls, intrusion detection systems (IDS), and anti-malware tools, are primarily designed to keep external threats out of the network. However, with insiders having legitimate access, they can blend in with the routine activities, making it difficult to distinguish between authorized and malicious intent.
Another thing to note, employees can also exploit legitimate access through privilege escalation, where an insider with lower-level access gradually gains higher privileges, either by exploiting vulnerabilities or by abusing the trust placed in them. This allows the insider to access and manipulate systems that would typically be beyond their reach.
Anonymity and Trust
As employees, contractors, or partners, they are trusted by the organization and given access to sensitive information and systems. This trust is a double-edged sword—while it allows employees to perform their duties efficiently, it also provides malicious insiders with the cover they need to conduct harmful activities without raising immediate suspicion.
For instance, they might know the times when monitoring is less stringent, or they may understand the behaviors that trigger security alerts and avoid them.
Behavioral Complexity
Behavioral complexity refers to the wide range of actions that insiders can take, many of which may appear normal or routine at first glance.
For instance, an employee may access files, send emails, or copy data to a USB drive—activities that are common in many roles. However, if these actions are part of a broader malicious plan, they can be difficult to detect without considering the broader context.
Furthermore, behavioral patterns can vary significantly from one insider to another, even among those in similar roles. Without a baseline understanding of what constitutes “normal” behavior for each user, it becomes challenging to identify deviations that may indicate a threat.
Warning Signs & Indicators of Insider Threats
Unusual User Behavior
Login patterns and network access are among the most telling insider threat indicators because they directly reflect the user’s behavior when they interact with the organization’s systems.
Typically, users follow consistent patterns in terms of when and where they log in, the devices they use, and the resources they access. Any deviation from these patterns—such as a sudden increase in after-hours logins, access from a different geographic location, or the use of a previously unrecognized device—can suggest that something is suspicious.
For example, if an employee who usually logs in from the office between 9:00 AM and 5:00 PM starts logging in from a foreign country at 3:00 AM, this should raise immediate red flags. Similarly, if an employee accesses a high-security server they have no reason to use, it could indicate either a compromise or deliberate malicious activity.
These anomalies may be indicative of the insider attempting to evade detection by working outside of normal monitoring windows or exploiting vulnerabilities in remote access controls.
Anomalous Activity on Endpoints
Anomalous activity on endpoints refers to any unusual or suspicious actions that occur on devices such as desktops, laptops, or mobile devices within the organization. These activities might include unexpected software installations, unauthorized device usage, or unusual file transfers.
Consider a scenario where a device starts executing commands or scripts that are not part of its regular operations—such as unauthorized software installations, modifications to system settings, or repeated failed login attempts—this could signal an insider attempting to escalate privileges or cover their tracks.
Suspicious Downloads and Data Access
Insiders who plan to exfiltrate data or cause harm often start by gathering the information they need. This can involve accessing documents, databases, or systems outside their regular job function, downloading sensitive files in bulk, or even repeatedly accessing specific types of information over time.
Furthermore, the nature and timing of the downloads and access are critical indicators. For instance, an employee using unauthorized methods, or bypassing security protocols suggests a deliberate attempt to evade detection. The intent might be to exploit the data for personal gain, sell it to competitors, or cause reputational damage to the organization.
Unauthorized Access to Sensitive Information
Unauthorized access to sensitive information is a crucial warning sign of an insider threat because it often represents a deliberate attempt by an individual to obtain data that they are not entitled to view or use.
This behavior can indicate malicious intent, especially when the information accessed is highly confidential, such as trade secrets, financial records, customer data, proprietary intellectual property or other critical assets.
In this case, an employee might elevate their access rights without approval, use stolen credentials, or bypass security protocols to reach information they are not authorized to see. This is particularly concerning when the accessed data is outside the scope of their job role or when the individual has no clear business need for the information.
The context and timing of unauthorized access are also significant. A quick example is accessing sensitive information during non-business hours, shortly before resigning, or after receiving negative feedback may suggest the individual is planning to use the information for personal gain, to harm the organization, or to pass it on to a competitor. In some cases, this behavior could be the precursor to more severe actions, such as data exfiltration, sabotage, or fraud.
Unexplained Financial Gain and Changes in User Behavior
Malicious insiders may be financially motivated to sell sensitive data, commit fraud, or damage their organization for personal gain.
This motivation often results in lifestyle changes that are inconsistent with the individual’s known financial situation. For example, an employee who suddenly pays off significant debts or purchases luxury items without an obvious source of income may be receiving compensation from external entities in exchange for compromising the organization.
Behavioral changes are also important indicators. An insider who becomes more secretive, starts working odd hours, or avoids interactions with colleagues may be attempting to hide their activities. These changes are often subtle and may be overlooked if not specifically monitored.
Insider Threat Detection Methods
Behavioral Analytics and User Monitoring
Behavioral analytics involves using algorithms and data analysis to monitor and understand user behavior within an organization.
It follows the approach of establishing a baseline of normal activity for each user, making it easy to identify deviations that may indicate malicious or negligent actions. These deviations are called ‘anomalies’, and can include unusual login times, accessing files outside of the user’s normal scope, or using applications that are not assigned for their role.
This is particularly effective in detecting insider threats because it focuses on individuals’ behavior rather than just their actions. The system continuously learns and adapts to each user’s unique behavior patterns, making it possible to detect even minor deviations that might otherwise go unnoticed.
For example, if an employee who typically accesses customer databases suddenly starts querying financial records, behavioral analytics would flag this activity as unusual.
Access Controls and Privilege Management
Access controls are fundamental to minimizing the risk of insider threats. This is based on the principle of least privilege (PoLP) which dictates that “users should only have the access necessary to perform their job functions—no more, no less.”
Users with excessive access rights are more likely to encounter sensitive information or systems they do not need to interact with. This can lead to intentional misuse (e.g., data theft) or accidental damage.
Role-based access control (RBAC) further refines this by assigning permissions based on the user’s role within the organization, ensuring that access rights are aligned with their responsibilities. By limiting access to only what is necessary, organizations reduce the attack surface that insiders can exploit
For example, a marketing manager might have access to customer data and marketing tools but would not have access to financial records or HR systems.
Analyzing Network Traffic for Anomalies
Network traffic analysis involves the continuous monitoring of data as it flows across the organization’s network. This helps identify when data is being accessed or transferred in ways that deviate from the norm.
For advanced network monitoring tools, they use techniques like deep packet inspection (DPI) to analyze the contents of data packets, allowing them to detect and block sensitive information being transferred without authorization.
Additionally, anomaly detection algorithms can flag unusual traffic patterns, such as a sudden spike in data volume or access to restricted subnets, for further investigation.
A common example is if an insider suddenly starts communicating with external servers that are not typically associated with their role, this could indicate an attempt to exfiltrate data.
Prevention Strategies for Insider Threats
Employee Training and Awareness Programs
To build a security-conscious culture, organizations must go beyond simply issuing security policies and expecting compliance. Instead, they need to engage employees at all levels, making them active participants in the organization’s security efforts.
For instance, phishing remains one of the most common entry points for insider threats, whether through compromised credentials or the delivery of malicious payloads. Training employees to recognize phishing attempts—such as suspicious emails, fake login pages, or unexpected attachments—can significantly reduce the risk of falling victim to these attacks.
Additionally, data handling training is crucial for preventing negligent insider threats. Employees must understand the importance of safeguarding sensitive information, including how to securely store, transfer, and dispose of data. This training should include guidelines on password management, encryption, and the use of secure communication channels.
Implementing security awareness training also ensures that all employees remain vigilant about the latest security risks and best practices. Regular updates and refreshers on security policies and procedures can help reinforce a culture of security.
Implementing Strong Access Controls
A critical aspect of access control is regularly reviewing and updating access rights. This process involves periodically assessing the access levels assigned to each user to ensure they are aligned with their current job responsibilities. Over time, users may change roles, departments, or responsibilities, leading to “privilege creep,” where they accumulate access rights they no longer need.
Implementing multi-factor authentication (MFA), a security protocol that requires users to provide two or more verification factors to gain access to a system, application, or data, is an extra precautionary measure.
It typically combines:
- Something the user knows (e.g., a password)
- Something the user has (e.g., a mobile device for receiving a one-time code) or
- Something the user is (e.g., biometric data like a fingerprint or facial recognition).
This multi-layered approach ensures that even if one factor is compromised, the attacker still needs to bypass additional security measures to gain access.
Regular Audits and Compliance Checks
Audits are a proactive measure for detecting suspicious activities that may not have triggered immediate alerts.
For example, an audit might reveal that a particular user has been accessing sensitive data more frequently than usual or that certain systems are being accessed during off-hours without proper authorization. By identifying these patterns early, organizations can investigate and address potential threats before they escalate.
Audits also play a critical role in verifying that security controls are functioning as intended. This includes ensuring that access controls are enforced, monitoring tools are active, and incident response plans are up-to-date.
Additionally, audits help organizations stay compliant with regulatory requirements, such as those mandated by GDPR, HIPAA, or SOX, which often require regular security assessments.
Incident Response and Contingency Planning
An insider threat response plan is a structured approach to identifying, mitigating, and recovering from insider threats. This plan outlines the specific steps that the organization will take when an insider threat is detected, including how to contain the threat, investigate its origin, and remediate any damage caused.
Let’s assume the organization detects an insider attack, where an employee is exfiltrating data, the plan might include:
- Identification: Quickly determining the scope and impact of the incident.
- Containment: Isolating affected systems to prevent further unauthorized activity.
- Eradication: Removing the insider’s access and any internal threats from the system.
- Recovery: Restoring systems and operations to normal securely.
- Post-Incident Analysis: Evaluating the response to improve future security measures.
Additionally, the plan would address how to communicate the incident to stakeholders, including executives, employees, and, if necessary, customers or regulatory bodies.
The Role of HR, IT, and Security Teams During Incidents
Effective incident response requires close coordination between HR, IT, and security teams. Each department plays a critical role in managing the threat, from identifying and containing the incident to handling the aftermath, such as disciplinary actions or legal proceedings.
HR is often responsible for addressing the human aspect of insider threats, such as investigating the motivations behind the threat, conducting interviews, and determining appropriate disciplinary actions.
IT teams focus on the technical response, including isolating affected systems, restoring data, and implementing security patches.
Security teams oversee the overall response, ensuring that the threat is contained, evidence is collected, and preventive measures are implemented.
Consider a scenario where an employee is suspected of leaking confidential information. In this case:
- The security team leads the investigation
- The IT team analyzes the employee’s digital activities
- The HR team manages communication with the employee and addresses any legal or ethical issues.
This cross-departmental approach ensures that all aspects of insider threats are addressed from technological, behavioral, and procedural perspectives.
Tools and Technologies for Insider Threat Detection
User Entity Behavior Analytics (UEBA)
UEBA systems analyze the behavior of users and entities (such as devices) across the network, using machine learning to identify patterns and detect anomalies.
These systems are designed to correlate multiple factors—such as login times, file access patterns, and communication channels—to create a holistic view of user and entity behavior. Key features of UEBA include:
- Real-Time Monitoring. Monitors user and entity behavior in real-time, ensuring that threats are detected as soon as they occur.
- Risk Scoring. Assigns risk scores to users and entities based on the severity and frequency of detected anomalies
- Contextual Analysis. It assesses whether recent role changes, location shifts, or other factors justify unusual activity. This reduces false positives and ensures that only genuinely suspicious behavior is flagged.
- Anomaly Detection. Uses advanced algorithms to detect deviations from established behavioral baselines.
Data Loss Prevention (DLP)
DLP solutions focus on preventing the unauthorized transfer of sensitive data outside the organization. They monitor data in use, in motion, and at rest, applying policies restricting or blocking suspicious activities.
DLP solutions are most effective when integrated with other security tools, such as SIEM systems, UEBA, and endpoint protection platforms. This integration allows for more comprehensive threat detection and response by correlating data from multiple sources and providing a holistic view of potential threats.
SIEM (Security Information and Event Management) Systems
SIEM solutions collect, aggregate, and analyze log data from across the organization’s IT environment, providing real-time visibility into security events.
By correlating data from various sources—such as network devices, servers, endpoints, and applications—SIEM systems can detect patterns and anomalies that may indicate a security threat, including insider threats.
How SIEM Systems Work
SIEM systems use correlation rules and advanced analytics to identify suspicious activities, such as unauthorized access attempts, privilege escalations, and data exfiltration.
Once a potential threat is detected, the SIEM system can trigger an automated response, such as isolating the affected system, revoking access, or alerting the security team for further investigation.
Privileged Access Management (PAM)
Privileged accounts, such as those belonging to system administrators, database managers, and IT staff, pose a significant risk if not properly managed. These accounts have elevated access rights that can be exploited to cause substantial harm, whether through data theft, system sabotage, or other malicious actions.
PAM solutions are designed to secure privileged accounts by enforcing strict controls over their use.
These solutions typically include features such as session recording, real-time monitoring, and automated alerts for suspicious activities. PAM can also enforce time-limited access or require additional authentication steps for sensitive operations.
Insider Threat Management (ITM) Platforms
ITM platforms are designed to provide end-to-end solutions for detecting, preventing, and responding to insider threats. These platforms integrate various security capabilities, such as user monitoring, behavior analytics, data protection, and automated response, into a single system.
These platforms can continuously monitor user interactions across networks, flagging suspicious activities in real-time and automatically triggering pre-configured responses, such as restricting access or alerting security teams.
In addition, they provide detailed forensic analysis tools that help in investigating incidents, allowing organizations to not only respond swiftly but also to improve their security posture over time. In general, they streamline the complex task of managing insider threats, making them essential for robust organizational security.
Common ITM platforms include:
Teramind
Teramind stands out as a top choice for insider threat management due to its comprehensive feature set, ease of use, and ability to provide real-time, actionable insights. The platform’s integration of user monitoring, behavioral analytics, and DLP ensures that no aspect of insider threat detection is overlooked.
Teramind’s proactive approach to threat management—combined with its robust automated response capabilities—makes it an ideal solution for organizations seeking to protect their sensitive data and maintain a secure environment.
Ekran System
This is an ITM platform known for its focus on privileged user activity monitoring. It provides real-time video recording of user sessions, combined with behavior analytics to detect suspicious activities. Ekran System is particularly useful for industries requiring strict compliance, offering detailed auditing and reporting features.
Proofpoint ITM (formerly ObserveIT)
Formerly known as ObserveIT, Proofpoint ITM is a leading insider threat management solution that focuses on user activity monitoring and risk detection.
It captures detailed insights into user actions and provides visual context for incidents, making it easier to investigate potential threats. ObserveIT also includes features for policy enforcement and real-time threat mitigation.
Forcepoint Insider Threat
This is a robust platform focused on monitoring user behavior to detect and prevent insider threats. It offers deep visibility into user activities and automates the detection of risky behavior, helping organizations protect sensitive data.
The platform also provides risk-adaptive protection by dynamically adjusting security policies based on user behavior.
Varonis
Varonis provides a comprehensive data security platform that focuses on protecting sensitive data by monitoring user behavior and data access patterns. It utilizes machine learning to detect insider threats by identifying abnormal activity. Varonis also offers automated remediation features, such as access revocation, to mitigate risks as soon as they are detected.
FAQs
What is one way you can detect an insider threat?
One effective way to detect an insider threat is by monitoring unusual data access patterns or file transfers. Look for employees accessing sensitive information outside their normal job duties or transferring large amounts of data to external devices or accounts.
How to monitor for insider threats?
Monitor insider threats by implementing user activity monitoring software and conducting regular security audits. Establish baseline behavior for employees and look for deviations, such as accessing systems at odd hours or attempting to bypass security controls.
What are the indicators of insider threat?
Key indicators of insider threats include unexplained wealth, expressing disgruntlement, violating company policies, and attempting to access information unnecessary for their role. Also watch for unusual work hours, frequent business trips without clear purpose, or reluctance to take vacations.
Are insider threats hard to detect?
Insider threats can be challenging to detect because perpetrators have legitimate access and knowledge of systems. However, with proper monitoring tools, clear policies, and employee awareness training, organizations can significantly improve their ability to identify potential insider threats early.
What are the red flags of insider threat?
Red flags of insider threats include sudden changes in behavior, financial difficulties, unreported foreign travel, and attempts to circumvent security measures. Also be alert for employees who hoard data, work odd hours without explanation, or show signs of disgruntlement with the organization.
How do you detect a threat?
Detect threats by implementing a comprehensive security program that includes network monitoring, access controls, and employee training. Use security information and event management (SIEM) tools to analyze logs and alerts, conduct regular vulnerability assessments, and stay informed about current threat intelligence.
Teramind: The Ideal Security Solution for Preventing Insider Threats
Teramind provides detailed visibility into user activities across all endpoints, applications, and data sources within the organization.
This includes monitoring keystrokes, screen recordings, email communications, file transfers, web browsing, and even interactions with external devices like USB drives.
This granular level of monitoring is crucial for detecting insider threats, as it allows security teams to observe exactly what users are doing in real-time.
Whether dealing with malicious insiders, negligent employees, or inadvertent data breaches, Teramind provides the visibility, intelligence, and control needed to protect against all kinds of insider threats.
