Beyond Hackers: Uncovering The Inside Cybersecurity Threat To Businesses
Maxwell Alles
When corporate leaders think about the biggest threat to the security of their financial data, many imagine a gang of cyber criminals conjuring up innovative ways to break through their defenses.
The reality is different. External hackers are not always the primary villains. The biggest threat often comes from within.
Insider threats—actions by people with approved access to an organization’s systems and data—can be the greatest menace. It could be your own trusted employees, reputable contractors or valued business partners, but intentionally—or unintentionally—they are the weak link.
A Look At The Research
Recent research reveals the staggering impact:
The average annual cost of an insider incident is $17.4 million per organization, up from $16.2 million in 2023, according to the Ponemon Institute’s 2025 Cost of Insider Risks Global Report. They also note that 55% of insider security incidents are due to employee negligence or mistakes, while 25% are caused by malicious insiders, and 20% by outsmarted insiders.
Cybersecurity Insiders reports that 74% of cybersecurity professionals are alarmed about malicious insiders—up from 60% in 2019. While 66% of organizations feel vulnerable to insider attacks, only 41% have gone so far as to partially implement insider threat programs.
But why are insiders responsible for a growing slice of security breaches? I've found there are several reasons. The Covid-19 pandemic, for instance, accelerated hybrid work, bringing with it the blurring of lines between personal and professional devices. Consider, on top of that, employee burnout and layoffs, and you have fertile ground for discontent.
As globally-acclaimed cybersecurity expert James Scott, senior fellow and cofounder of the Institute for Critical Infrastructure Technology, reportedly said, “Hackers find more success with organizations where employees are underappreciated, overworked and underpaid. Why would anyone in an organization like that care enough to think twice before clicking on a phishing email?”
Best Practices
The fix? Ditch the old-school walls-around-the-castle mindset and get proactive about insiders. Here are 10 straightforward tips to help you lock it down—best practices based on my experience in the industry.
- Implement the principle of least privilege. Only give employees access to the data and systems essential for their roles. Review permissions on a quarterly basis and revoke any unnecessary rights. This action alone is likely to slash the cost of breach damage.
- Use behavioral analytics tools. Set up AI-driven monitoring to flag anomalies like unusual data downloads or login patterns.
- Frequently run anonymous risk checks. Survey your team anonymously every six months on security perceptions and close calls. With no names attached to this reporting process, cultural blind spots are uncovered without fear of reprisal, thereby boosting reporting.
- Make multifactor authentication (MFA) a must everywhere. Require MFA for all logins, even internal apps. MFA can significantly help with blocking account takeover attempts.
- Keep training fresh and fun. Deliver cybersecurity training every quarter with role-specific simulations, focusing on phishing and data handling. Gamified training can help ensure employees not only complete their training but also retain and apply the knowledge effectively—helping organizations meet compliance requirements more efficiently.
- Set clear rules and easy reporting channels. Create a simple insider threat document outlining dos and don’ts with anonymous tip lines to report suspicious activity. Encourage a “See something, say something” approach to reduce incidents.
- Adopt data loss prevention tech. Consider installing DLP solutions to scan and block sensitive data exfiltration via email, cloud or USB.
- Vet people thoroughly—and keep checking. Conduct thorough background checks during the hiring process for financial red flags or criminal history. Monitor continuously for employee life changes.
- Build a more positive workplace culture. Invest in employee wellness, deliver fair pay and institute recognition programs to minimize disgruntlement. I've found that happy teams are usually less likely to engage in undesirable behavior.
- Create a response plan and practice it. Create a playbook for quick isolation and investigation of an insider breach. Test it with drills at least twice a year. You’ll find it reduces recovery time from a cybersecurity incident and saves dollars.
Cybersecurity Insiders reports that 74% of cybersecurity professionals are alarmed about malicious insiders—up from 60% in 2019. While 66% of organizations feel vulnerable to insider attacks, only 41% have gone so far as to partially implement insider threat programs.
Wrapping It Up
By prioritizing proactive measures like robust access controls, behavioral analytics and a positive workplace culture, companies can significantly reduce the risk of insider threats. Implementing these strategies not only mitigates the cost of incidents but also facilitates a security-conscious environment where employees are empowered to act as the first line of defense.
Shifting from reactive defenses to a proactive, insider-focused approach is an essential element in safeguarding sensitive data and ensuring long-term organizational resilience.
(Originally posted for Forbes Business Council)
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