What Is An Insider Threat?

Every business takes external cybersecurity attacks seriously. However, insider threats are often underestimated. According to an article from the Information Systems Audit and Control Association (ISACA), approximately 60 percent of data breaches are attributable to insider threats. 

As the term suggests, an insider threat refers to a security risk that originates from within an organization. This threat often involves current or former employees, contractors, or business associates with authorized access to sensitive information and systems. Such individuals may intentionally or unintentionally misuse their access, jeopardizing the organization’s vital assets’ confidentiality, integrity, or availability.

What factors would motivate an individual within an organization to pose a potential threat? Insider threats are sometimes accidental or simply a result of negligence. In other instances, this threat may originate from a disgruntled present or ex-employee seeking financial gain or retribution following termination. 

What is an Insider Threat?

An “insider,” within the framework of security and insider threats, denotes any individual who currently possesses or has previously possessed authorized access to an organization’s resources, systems, data, or physical premises. While a broad definition, an insider could encompass a wide range of roles and relationships, such as:

• Employees: Full-time, part-time, or temporary staff with access to company resources.  
• Former employees: Previously employed individuals whose access may not have been properly revoked upon termination.   
• Contractors & Consultants: Temporary workers that hold limited authorized access.  
• Third-party vendors: Individuals or companies that provide goods or services to the organization and have integrated system access. 
• Business partners: Organizations or individuals with whom the company has a formal business relationship. Business partners often have access to sensitive information. 
• Privileged users: Individuals with enhanced access privileges to systems and data, including system administrators or database administrators. They can also be known as managerial insider threats.

Fundamentally, an insider could be any individual who currently possesses access or previously held access to an organization’s confidential information or proprietary assets. Granting this level of trust can open the door to potential risk, whether intentional or not. 

Types of Insider Threats

Insider threats can be categorized in several ways based on the intent and impact they have on an organization. The following are some of the most common types of insider threats: 

Malicious Insiders (Intentional Threats) 

Malicious insider threats are intentional, meaning these individuals deliberately harm the organization. But what is the motivation behind these malicious insider threats? Individuals that abuse their privileged access typically cause damages due to personal grievances or self-serving reasons such as:

• Financial gain: Selling company trade secrets or sensitive data to competitors for personal profit.  
• Retribution: Seeking to harm the company due to perceived mistreatment, job loss, feeling undervalued, or being passed over for promotions.  
• Personal vendettas: Pursuing revenge against a manager, colleague, or the organization for any personal reason. 
• Ideological beliefs: Acting out based on personal beliefs or political convictions that oppose the organization.  
• Espionage: Working undercover as a spy for a competitor, foreign government, or other entity.  
• Blackmail or coercion: Experiencing pressure from external parties to unlawfully obtain information.

Negligent Insiders (Unintentional Threats) 

Negligent insiders unintentionally cause harm, typically due to carelessness, lack of awareness, or failure to follow security procedures. While there is no malicious intent, these individuals may inadvertently: 

• Leak data: Sending sensitive information to the wrong recipient or leaving it unsecured (i.e. not locking the computer when walking away from their desk).   
• Fall victim to phishing: Clicking on harmful links or opening infected attachments can compromise their account and potentially the entire network.
• Fail to follow security protocols: Ignoring security policies or best practices may lead to vulnerabilities that can be taken advantage of.   

Compromised Insiders

A compromised insider refers to an employee, contractor, or other authorized user whose account, credentials, or device has been hijacked by an external attacker. This situation may arise from phishing, malware, credential theft, or other manipulation tactics—allowing the attacker access to sensitive systems and data. 

This type of threat can be difficult to identify since the attackers utilize legitimate insider credentials to access the network. This allows external cybercriminals to steal data and inflict harm, while the insider may be completely unaware of the compromise. 

Opportunistic Insiders

Opportunistic insiders misuse their access to an organization’s systems or information for their own personal benefit. They may be employees, contractors, or third-party users that take advantage of weak security controls. 

While their initial intent may not be harmful, opportunistic insiders pose a growing threat, as they seize unexpected opportunities when they present themselves. These individuals may inadvertently stumble across sensitive data and frequently exploit it without prior planning.  

It’s important to note that the above categories of insiders aren’t always mutually exclusive. For example, a negligent insider could transition into a compromised insider if their account is removed following a phishing incident. Understanding the distinctions between the different types of insider threats enables organizations to develop more efficient prevention and detection measures. 

Insider Risk vs Insider Threat

Let’s examine the differences between an insider risk and an insider threat. In simple terms, insider risk is a broader concept that includes unintentionally compromised data, while an insider threat is when someone deliberately harms an organization. 

Insider Risk (Not Yet a Threat)

Insider risk encompasses any potential negative impact within an organization—resulting from actions taken by individuals who possess authorized access. This includes both malicious actions (insider threats) and inadvertent actions that could result in damage. Essentially, it’s the possibility or likelihood of something going wrong due to an insider.

Insider Threat (Active Risk in Progress)

An insider threat is a subset of insider risk that refers to malicious or intentional actions taken by an insider with the intent of harming the organization. This could include data theft, security breaches, or system sabotage. Effectively, it’s an active intent to cause damage.

While all insider threats originate from insider risks, not all insider risks become threats. For example, an employee accidentally clicking on a phishing link represents an insider risk—potentially jeopardizing the organization’s network. However, that employee does not necessarily constitute an insider threat unless there was a deliberate intention to harm the company. 

How Does an Insider Threat Occur?

An insider threat occurs when an individual who has been granted authorized access to an organization’s systems, data, or facilities exploits that access, whether intentionally or unintentionally. This can lead to security breaches, data leaks, or disruptions in operations. 

Insider threats can happen due to negligence, malicious intent, or external compromise. The following are nine of the most common ways that threats can occur from the inside: 

1. Exploitation of legitimate access: Individuals with insider status have authorized access to systems and data—making it easier to misuse that privilege. They don’t need to “break in” in the traditional sense but rather utilize their credentials to exploit the system. 
2. Social engineering: Individuals within an organization may be influenced by colleagues or business partners to divulge confidential information or engage in activities that jeopardize security. This type of manipulation involves psychological tactics such as phishing, creating fabricated scenarios, or building trust to gain access. 
3. Data exfiltration: This occurs when individuals transfer data to removable storage devices such as USB drives or external hard drives. They then email the data to personal accounts, upload it to cloud storage platforms, or print it out.
4. System manipulation: Insiders with certain privileges can modify system settings, disable security controls, or even install malware. This can lead to vulnerabilities such as additional exploitation or data breaches. 
5. Physical access: Insiders with onsite access to facilities can steal equipment, tamper with hardware, or gain access to restricted areas.  
6. Account compromise: While their intentions may not be malicious, an insider’s account can be compromised by external attackers through phishing, malware, or password cracking. In this scenario, the attackers use the insider’s credentials to execute harmful actions.
7. Negligence and carelessness: Unintentional insider threats may arise from human mistakes, such as accidentally sending sensitive information to the wrong recipient, falling victim to a phishing scam, or failing to follow security protocols.
8. Gradual escalation of privileges: While an insider might start with limited access, they may gradually gain more privileges over time, eventually reaching an access level that enables them to cause significant damage.  
9. Departing employees: Employees who are on their way out the door, especially those who are disgruntled, may be more likely to steal data, sabotage systems, or maintain access to company resources after their employment ends.

Understanding Insider Threat Indicators and Patterns 

Detecting an insider threat requires recognizing early warning signs and identifying patterns associated with risky behavior before the onset of security incidents. Such threats frequently have behavioral, digital, and operational indicators that organizations can observe through user activity monitoring, behavioral analytics, and security tools.

Behavior Patterns

Patterns or changes in an insider’s behavior, such as working odd hours or accessing company systems remotely, may serve as red flags. While there may not be proof of malicious intent, these patterns should be identified and monitored. 

Insider threats frequently display specific behavioral patterns before any malicious or negligent acts are committed. Organizations can better mitigate data breaches, fraud, and system sabotage by recognizing these patterns early on. The following are key behavior categories and their associated risk indicators: 

• Extended working hours or atypical work schedules: Working late night shifts, weekends, or operating during odd hours, especially if it coincides with access to sensitive data or systems, may suggest efforts to obtain information beyond routine monitoring.
• Accessing information unrelated to job responsibilities: Viewing, downloading, or printing documents irrelevant to an individual’s role may suggest a potential intent to misuse data.
• Deviations from usual behavior: Sudden changes in personality, such as irritability, defensiveness, or social withdrawal, may be associated with stress stemming from participation in illicit activities.
• Disgruntled or negative attitude: Expressing dissatisfaction with the organization, leadership, or job duties may motivate revenge or sabotage.
• Ignoring security policies: Consistently disregarding security procedures or best practices could indicate a lack of respect for rules or an attempt to bypass security measures.
• Bringing personal devices to secure areas: Introducing unauthorized personal devices into restricted areas may lead to data theft or other harmful activities. 

Technical Indicators

Insider threats often leave digital footprints or a trail of online data (think breadcrumbs) that can be identified through technical monitoring, anomaly detection, and security analytics. These indicators typically encompass unauthorized access, data exfiltration, system manipulation, and security breaches. 

These patterns pertain to an insider’s digital behaviors and interactions with systems and data and provide more concrete evidence of potential insider threats. Examples include:

• Unusual data access patterns: Accessing sensitive information outside of standard working hours, from unusual locations, or in high quantities might suggest potential data theft or unauthorized access.
• Data exfiltration efforts: Transferring large files to portable storage devices, emailing sensitive information to personal accounts, or uploading data to cloud storage services.
• Use of unauthorized software or devices: Installing unapproved software or connecting personal devices to the company network could introduce malware or create security vulnerabilities.
• Attempts to disable security controls: Efforts to disable antivirus software, firewall settings, or other security measures.
• Keyword searches related to data theft or sabotage: Searching for information on subjects such as “how to delete data securely” or “how to sell stolen data.”
• Utilizing anonymizing tools: Employing VPNs, the Tor browser, or other tools to conceal online activity.
• Modifications to system configurations: Adjusting system settings or access controls to obtain additional privileges or hide activities.
• Increased network activity: Unexplained surges in network traffic could indicate data exfiltration or other malicious activity.
• Creation of backdoors: Creating hidden entry points into systems or data to be utilized for future exploitation.
• Deletion of logs or audit trails: Attempting to erase records of any activities to cover one’s tracks.

It’s essential to recognize that no single indicator can definitively confirm the presence of an insider threat. However, further investigation is warranted when multiple behavioral and technical indicators are observed together. A comprehensive insider threat program should prioritize detecting and responding to these patterns to reduce potential risks.

Who Is at Risk of Insider Threats?

Every organization, regardless of size or industry, is susceptible to insider threats. However, specific sectors that handle highly sensitive or classified data are at a significantly higher risk of experiencing devastating consequences, such as substantial financial penalties, brand damage, and operational disruption. 

The type of data at risk may include intellectual property, trade secrets, customer information, employee data, financial records, and more. The loss of such data can result in competitive disadvantages, financial losses, reputational harm, and potential legal consequences.

While no organization is immune to insider threats, specific industries are statistically more vulnerable due to the nature of the information they handle. These high-risk sectors often include:

• Financial Services & Banking: This sector holds vast amounts of financial data, including customer account details, transaction records, and investment strategies— making it a prime target for insiders motivated by financial gain.
• Healthcare & Pharmaceuticals: Healthcare institutions maintain confidential patient data, such as medical records, insurance information, and personal details—making them susceptible to data breaches and regulatory penalties.
• Government & Defense: Government agencies hold classified information, national security secrets, and sensitive personal data—making them high-value targets for espionage and sabotage.
• Technology & SaaS: Organizations in the tech sector often possess intellectual property, trade secrets, and other proprietary information, which can be quite appealing to competitors or foreign entities.
• Telecommunications: Telecom companies have access to large amounts of customer data, such as call records and browsing history, making them susceptible to privacy breaches.
• Manufacturing: This industry holds a vast amount of intellectual property related to product design and manufacturing, which can be highly attractive to competitors.
• Energy, Utilities & Critical Infrastructure: This sector possesses access to coveted industrial control systems and operational technology—making them vulnerable to ransomware attacks and other threats. 

It’s important to recognize that while specific industries face a greater risk, any organization can be susceptible to insider threats. Thus, having a comprehensive security framework in place is crucial. 

How to Protect Against Insider Attacks

Preventing insider threats requires a thorough and multifaceted approach to security, combining protective measures, strong policies, and a robust security culture. Here’s a breakdown of key strategies:

Access Control and Least Privilege

• Principle of least privilege: Provide users only the minimum permissions and access rights needed to perform their job duties. This approach minimizes potential insider harm, even if they have been compromised. 
• Role-based access control (RBAC): A best practice is to assign access solely based on job roles and responsibilities which streamlines access management and ensures consistency.
• Multi-factor authentication (MFA): Require multiple authentication methods (e.g. passwords, security tokens, and biometrics) to verify user identity—making it harder for unauthorized access.

Monitoring and Detection

• User and entity behavior analytics (UEBA): Identify baselines for normal user activity and use machine learning to detect any irregular behavior that could be malicious.
• Security information and event management (SIEM): Collect and analyze security logs from multiple sources to help identify any unusual patterns or potential threats.
• Data loss prevention (DLP): Implement tools to ensure sensitive data doesn’t leave the organization’s control, whether intentionally or unintentionally.
• Endpoint Detection and Response (EDR): Monitor all endpoint devices, including laptops, desktops, and mobile devices for signs of malicious activity—enabling you to address threats as they arise.

Policies and Procedures

• Data handling policies: Establish clear protocols for handling sensitive data, such as storage, access, and disposal.
• Acceptable use policies: Define guidelines for the appropriate use of company resources (e.g. computers, networks, and internet access). 
• Incident response plan: Develop a communication plan highlighting how to respond to and recover from an insider threat.
• Background checks: Conduct thorough background checks for all new hires, particularly those with access to sensitive information.
• Employee offboarding procedures: Develop a process for promptly terminating system access and monitoring the activities of users who are leaving the organization.

Security Awareness Training

• Regular training: Provide regular security awareness training to employees, stressing the importance of data security and how to identify and report any suspicious activity. 
• Phishing awareness: Educate employees on how to recognize and avoid phishing scams, a common way attackers gain access to accounts on the inside.
• Social engineering awareness: Train employees on social engineering tactics and instruct them on how to avoid being manipulated into sharing sensitive information.

Physical Security

• Access control: Restrict physical access to sensitive areas and data centers.
• Surveillance systems: Use surveillance cameras and other security measures to monitor physical access.
• Visitor management: Implement a system for tracking and managing visitors.

Insider Threat Program

• Dedicated team: Form a specialized team responsible for managing insider threats.
• Risk assessment: Conduct regular risk assessments to detect any weaknesses and prioritize mitigation efforts.
• Collaboration: Encourage collaboration between security, HR, legal, and other relevant departments to effectively address insider threats. 

Data Security

• Data encryption: Safeguard sensitive data both in transit and at rest.
• Data backup and recovery: Create backups of critical data and have a plan for restoration in the case of a data breach.
• Data governance: Establish data governance policies to ensure its quality, integrity, and availability. 

What Is Not Considered an Insider Threat?

An insider threat is not to be confused with an attack from an external or unknown source. It’s important to understand what doesn’t constitute an insider threat to avoid incorrect labeling and misguided security efforts. The following seven situations are generally not considered insider threats: 

1. External attacks: Cyberattacks that originate from outside the organization, such as hacking attempts, malware infections, or disruption attacks, are not insider threats, but rather traditional cybersecurity threats.
2. Customer actions: Actions taken by external customers, regardless of how they affect the organization (e.g. fraudulent transactions and account takeovers), are not considered insider threats.  
3. Publicly available information leaks: If information is leaked due to a breach of a publicly accessible database, this is not an insider threat. The leak’s origin must be traced back to an insider with authorized access.
4. Third-party breaches: If a third-party vendor experiences a data breach and the organization is compromised, this is not an insider threat.
5. Unintentional data loss without malice: Accidental data loss due to negligence is not considered a malicious insider threat if no intent exists to inflict harm.
6. Former employees with no remaining access: Once a former employee’s access has been revoked, any actions they take become an external threat, not an insider threat. 
7. Isolated policy violations: While simple breaches of policy such as inappropriate web browsing or using personal devices on company Wi-Fi are violations, they are not considered insider threats.

The primary distinction is that an insider threat applies to an individual with legitimate access and misuses it, whether deliberately or inadvertently. On the flip side, if individuals do not possess authorized access, their actions won’t qualify as insider threats.

Insider Threat Examples

Insider threats can, without a doubt, be catastrophic for organizations, leading to data breaches, financial losses, and reputational damage. Below are real-life examples from various industries that demonstrate the risks associated with insider threats:

Tesla

In 2023, two former Tesla employees illegally accessed and leaked confidential information to the media. The data breach exposed trade secrets and employee data, as reported by the German newspaper “Handelsblatt”. This incident demonstrates not only a loss of intellectual property but also the potential for reputational damage due to insiders motivated by personal gain. 

Pegasus Airlines

In 2022, Pegasus Airlines experienced a data breach after an airline employee misconfigured security settings for an Amazon Web Services (AWS) storage bucket—exposing millions of files containing sensitive operational and personal data. This incident was attributed to employee negligence and highlights the importance of having proper security practices in place for all systems. 

CashApp

In 2021, a former CashApp employee accessed and leaked customer data, including brokerage account numbers and stock trading activity. The individual who caused the data breach was motivated by revenge following the termination of their employment. This scenario highlights the importance of managing employee access and continuous monitoring. 

General Electric

In 2020, a GE engineer stole thousands of files related to gas turbine technology to launch a rival company. This incident showcases a clear-cut case of intellectual property threat that ultimately led to an FBI investigation and conviction of the insider. 

Desjardins

In 2019, Desjardins, a Canadian financial firm, disclosed a data breach that affected nearly 3 million customers’ personal information. This scenario involved a malicious employee who copied large amounts of customer data onto a shared company drive. As a result, Desjardins experienced significant financial losses, by way of fines and costs related to customer remediation.

How Teramind Can Help

Insider threats undoubtedly represent a growing cybersecurity concern that has significantly escalated in recent years. A proactive approach is paramount to identifying and managing insider risk. Taking preventative measures, such as actively monitoring employee behavior and implementing strong security controls, will help mitigate potential data breaches from within. 

Teramind provides a comprehensive suite of features aimed at assisting organizations in identifying, preventing, and responding to insider threats. Here’s how Teramind can help: 

• User Activity Monitoring: Teramind offers detailed insights into employee activities, including application usage, website searches, file access, and data transfers. This allows security teams to understand how employees engage with company resources and identify any unusual behavior.
• Behavioral Analytics: By establishing baselines for typical user behavior, Teramind can detect anomalies that may suggest malicious intent or compromised accounts. This encompasses any atypical access patterns, data exfiltration, and other suspicious activities. 
• Data Loss Prevention (DLP): Teramind employs multiple strategies to safeguard sensitive data from leaving the organization’s control. These include blocking file transfers to USB drives, limiting email attachments, and preventing uploads to unauthorized cloud storage platforms.
• Insider Threat Detection: Teramind utilizes a combination of user activity monitoring and behavioral analytics to identify and send alerts of potential insider threats, both malicious and negligent. 
• Remote Employee Monitoring: With the influx in remote work, Teramind offers visibility into remote employee activity—ensuring productivity and security while employees are working outside the traditional office.  
• Compliance Monitoring: Teramind assists organizations in complying with industry regulations and internal policies by tracking employee activities and ensuring adherence to guidelines. 
• Forensic Investigation: In the event of an incident, Teramind offers detailed audit trails and forensic evidence to assist security teams in investigating the breach, assessing the extent of the damage, and identifying the responsible parties.  
• Alerting and Reporting: Teramind provides real-time alerts on suspicious activities—enabling security teams to quickly address potential threats. It also features comprehensive reporting capabilities that assist organizations in understanding their security status and identifying areas for improvement.  
• Policy Enforcement: Teramind can enforce security policies and restrict access to sensitive data or systems based on user roles, departments, or other criteria.  
• User and Entity Behavior Analytics (UEBA): Teramind uses UEBA to define standard behavior baselines and detect any deviations that might indicate security threats or performance issues.

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