“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within.”
Marcus Tullius Cicero
Understanding IT Insider Risk and How to Mitigate It
IT insider risk refers to the threat posed by employees, contractors, or business partners who have access to an organization’s systems and data and either intentionally or unintentionally cause harm. These risks can lead to data breaches, financial loss, or operational disruptions.
Types of Insider Threats
Malicious Insiders – Employees or contractors who deliberately steal, leak, or sabotage company data for personal gain or revenge.
Negligent Insiders – Users who unintentionally compromise security by clicking on phishing emails, mishandling sensitive data, or using weak passwords.
Compromised Insiders – Employees whose credentials have been stolen through phishing, malware, or social engineering attacks, allowing hackers to infiltrate the system.
Real-World Examples of IT Insider Risk
Twitter (2020): Hackers used social engineering to manipulate insiders into providing access, leading to a massive Bitcoin scam involving high-profile accounts.
Tesla (2020): A disgruntled employee was caught attempting to exfiltrate trade secrets to outsiders.
U.S. Defense Contractors: Multiple cases have involved insiders leaking sensitive military and defense information to foreign adversaries.
Best Practices to Reduce IT Insider Risk
Limit Access to Sensitive Data – Follow the principle of least privilege (PoLP) so employees only access what they need.
Monitor User Activity – Use User and Entity Behavior Analytics (UEBA) to detect suspicious behavior.
Implement Strong Access Controls – Use Multi-Factor Authentication (MFA) and secure remote access.
Conduct Employee Security Training – Teach employees to recognize phishing, social engineering, and data handling best practices.
Use Data Loss Prevention (DLP) Tools – Prevent unauthorized file transfers and data exfiltration.
Have an Insider Threat Response Plan – Ensure IT and HR teams have protocols to investigate and mitigate insider risks quickly.
IT insider threats are a growing challenge, but with the right policies, monitoring, and security culture, organizations can significantly reduce risk and prevent costly breaches.
According to industry reports, insider threats cost organizations an average of $15.4 million per incident, with the financial, healthcare, and technology sectors being the most affected.
Insider risk is particularly difficult to detect in that trusted employees are often targeted by hackers and extorted to perform the risky work of stealing data or allowing access to sensitive systems.
Insider Risk costs
The Cost of Insider Risk in the U.S.: Real-World Examples
Insider threats pose a significant financial burden on U.S. organizations, costing millions in lost revenue, regulatory fines, and reputation damage. Here are three real-world cases highlighting the impact:
1. Tesla: Employee Sabotage & Data Theft
In 2018, a Tesla employee sabotaged the company’s manufacturing operations and stole confidential data. The insider allegedly made unauthorized software changes to Tesla’s production system and leaked sensitive trade secrets. This led to disruptions in manufacturing and potential competitive exposure. While the exact financial impact remains undisclosed, legal action and remediation efforts likely cost Tesla millions.
2. Facebook: Data Misuse by Employees
Facebook has faced multiple insider-related security incidents, including employees abusing access to user data. In some cases, workers were found spying on users or selling data to external parties. These breaches contributed to Facebook’s record-breaking $5 billion fine by the FTC in 2019 for privacy violations.
3. Anthem: Healthcare Insider Breach
In 2017, a former Anthem employee was caught stealing patient data and selling it on the dark web. Over 18,500 Medicare members’ information was compromised. The breach resulted in significant regulatory fines and class-action lawsuits, adding to Anthem’s already massive $115 million settlement for a separate data breach in 2015.