Key Points

• Insider threat and insider risk are often used interchangeably but have distinct meanings.
• Understanding the differences between them is crucial for effective data security.
• Types of insider threats and risks include malicious, unintentional, and negligent actions.
• Metomic offers an insider threat detection solution to mitigate insider threats and risks, such as comprehensive monitoring and behaviour analytics.

When we talk about safeguarding our businesses from data breaches, two terms frequently come up: insider threat and insider risk.

Although they might seem interchangeable, understanding the distinction between ‘insider threat’ and ‘insider risk’ is crucial for building a robust security strategy.

Insider threat refers to malicious actions by individuals within an organisation who intentionally cause harm or steal data, whereas Insider risk covers the broader spectrum of potential vulnerabilities, including unintentional mistakes by well-meaning employees.

Why does this matter? Because addressing these concepts effectively can significantly enhance your data security measures.

What is meant by insider threat?

Insider threats refer to harmful actions carried out by individuals within your organisation—be it employees, contractors, or business partners—who exploit their access to data for malicious purposes.

These aren't just minor mishaps or accidental data leaks; insider threats are deliberate actions aimed at causing damage or stealing sensitive information.

Insider threats can lead to severe financial losses, damage to your reputation, and compromised customer trust.

And these threats aren't rare. In fact, ID Watchdog reports that a staggering 60% of data breaches are caused by insider threats.

Insider threats can manifest in various ways. It could be an employee stealing intellectual property, a contractor leaking confidential information, or even a disgruntled worker sabotaging your systems.

What is meant by insider risk?

Unlike insider threats, which are intentional and malicious, insider risks encompass a broader range of potential issues. These are vulnerabilities and opportunities for mistakes that can lead to security breaches.

Anyone with access to your company's data—employees, contractors, even partners—poses a certain level of risk simply by virtue of having access.

Think of insider risk as the potential for something to go wrong. This could be an employee accidentally sending sensitive information to the wrong person, or someone finding a workaround for a cumbersome security measure.

While these actions might not be malicious, they can still have serious consequences.

To put it into perspective, this "Cost of Insider Risks Report", by DTEX, states that 7,343 global insider risks were reported in 2023, which shows just how prevalent these risks are.

What are the types of insider threat and risks?

When it comes to insider threats and risks, it's crucial to understand the different types so you can effectively protect your organisation. Let's break it down:

• Malicious Insiders: These are individuals who intentionally cause harm by stealing sensitive data, sabotage systems, or leak confidential information. An example could be a disgruntled employee selling company secrets to a competitor.
• Unintentional Insiders: Sometimes, people make mistakes or get tricked. These unintentional insiders can accidentally send sensitive emails to the wrong person or click on a phishing link, exposing the company to risks. For instance, an employee might mistakenly share a confidential document with an external contact or be duped by a convincing email that prompts them to provide login details or download malicious software.
• Negligent Insiders: Negligent insiders are those who, through carelessness or lack of training, fail to follow security protocols. This could be an employee who doesn't bother to use secure passwords or someone who disables security features for convenience.

The "Cost of Insider Risks Report", by DTEX, also states that:

Who can be an insider threat or risk?

Insider threats and risks can emerge from various roles within an organisation, extending beyond just employees. Here's a closer look at who might pose insider threats or risks:

1. Employees: Naturally, employees are the most common source of insider threats and risks. Whether intentional or unintentional, their actions can significantly impact data security. This includes everyone from junior staff to executives who have access to sensitive information.
2. Contractors: External contractors or third-party vendors who have access to an organisation's systems or data can also pose insider risks. While they may not have the same level of loyalty or accountability as permanent employees, they still have the potential to cause harm through negligence or malicious intent.
3. Partners: Similarly, business partners or associates who collaborate closely with an organisation may pose insider risks. This could include suppliers, consultants, or even clients who have access to proprietary information or systems.

While employees may have a deeper understanding of the organisation's systems and processes, external parties with access to your organisation's internal systems and sensitive data can also pose significant threats.

What are the dangers?

When it comes to insider threats and risks, the stakes are high, and the consequences can be severe.

Let's take a closer look at the potential dangers:

• Financial loss: Insider threats and risks can result in significant financial repercussions for organisations. Whether it's through data breaches, intellectual property theft, or fraudulent activities, the financial impact can be substantial, with costs running into millions of dollars - And as of 2023, breaches caused by insiders cost businesses an average of $16.2 million.
• Reputational damage: Beyond monetary losses, insider incidents can tarnish a company's reputation and erode trust among customers, partners, and stakeholders. Recovering from a damaged reputation can be a long and arduous process, with lasting effects on brand perception and market credibility. In fact, 66% of consumers would not trust a company after a data breach.
• Regulatory penalties: Non-compliance with data protection regulations can lead to hefty fines and legal penalties. Organisations that fail to adequately safeguard sensitive data may find themselves facing regulatory scrutiny and enforcement actions, further compounding the financial and reputational fallout.

It takes approximately 86 days to identify and mitigate the effects of an insider-related security breach. Clearly, proactive detection and response mechanisms are crucial for minimising the impact of insider threats on organisational security

How do malicious and negligent insiders differ in their behaviours and impact? 

Insider threats aren’t all the same, though they generally fall into two categories: malicious and negligent. While their behaviours and motivations differ, both can have serious consequences for organisations.

Malicious insiders: Intentional threats with deliberate goals

Malicious insiders intentionally misuse their access to data or systems, often for financial gain or personal motives. These individuals might steal intellectual property, sell customer data, or sabotage systems out of resentment towards the company.

Though less common, accounting for 25% of insider threat cases, malicious incidents are by far the most expensive. On average, they cost organisations $701,500 per incident. 

This high cost is due to their deliberate and targeted nature, which often results in substantial financial and reputational damage.

Negligent insiders: Unintentional but harmful

Negligent insiders don’t act with malicious intent but can still cause significant harm. Common behaviours include:

• Falling victim to phishing scams.
• Using weak passwords or reusing them across systems.
• Mishandling sensitive information, such as sending it to the wrong recipient.

These mistakes typically arise from a lack of security awareness or proper training. While the direct costs might be lower than those caused by malicious insiders, the cumulative impact of repeated negligence can add up over time.

Comparing their impacts

The key difference lies in intent. Malicious insiders cause deliberate harm, leading to immediate and severe consequences, while negligent insiders unintentionally expose organisations to risk through carelessness. 

Both types, however, share one similarity: they exploit their legitimate access to sensitive data and systems, making them harder to detect than external threats.

What are the signs of an insider threat and risk?

Recognising insider threats before they escalate relies heavily on identifying unusual behavioural patterns. Everyone has a unique way of interacting with systems, data, and colleagues, so understanding what constitutes ‘normal’ behaviour is key. 

By establishing baselines for employee activity, organisations can spot deviations that may signal an insider threat early. Here’s 10 key behavioural indicators to watch for:

1. Unusual working hours

‍Employees accessing systems at odd hours unnecessarily—such as late at night or over weekends—can be a sign of suspicious activity. Monitoring for these deviations can help spot potential threats.

2. Accessing large volumes of data

‍A sudden surge in data access, particularly if an employee is pulling data they don’t typically use, could indicate potential data exfiltration. Look out for unusual data downloads or requests.

3. Unusual data transfers

‍Large or frequent data transfers outside of usual working patterns can be a strong indicator of a potential insider threat, especially if the data is transferred to external devices or locations.

4. Bypassing security protocols

‍Employees who deliberately bypass security protocols—such as ignoring file encryption or using unauthorised methods to share data—should be closely monitored. Such actions can signal malicious intent.

5. Accessing unrelated files or systems

‍Employees trying to access data or systems outside their job function could be a red flag. For instance, if an HR employee starts accessing finance records without a legitimate reason, this behaviour warrants investigation.

6. Changes in work habits or performance

‍A sudden shift in an employee's work habits, such as withdrawing from regular duties or showing signs of distress, can indicate that something is amiss. These behavioural shifts should be investigated, especially when combined with other suspicious activities.

7. Unusual login behaviour

‍Frequent failed login attempts, or logging in from multiple different locations or devices in a short period, could suggest a compromised account or an attempt to hide malicious activities.

8. Using unauthorised devices or software

‍If employees begin using devices or software that are not approved by the organisation’s security protocols, this could signal an effort to bypass security measures or exfiltrate data.

9. Attempts to conceal activities

‍Insider threats often attempt to cover their tracks. Monitor any signs of employees trying to delete or alter logs, or using methods to disguise what they’re doing on company systems.

10. Unexplained financial changes

‍If an employee experiences sudden financial changes—such as unexplained wealth or sudden spending habits—it could suggest the potential for financial fraud linked to insider threats.

The role of behavioural patterns in identifying potential threats

Recognising insider threats depends on understanding typical employee behaviour. Once a baseline of expected activity is established, deviations—like changes in access patterns or data usage—are easier to identify.

For example, if an employee who typically accesses customer data once a week begins pulling large amounts of data daily, it raises a red flag.

Focusing on overall behavioural patterns, rather than just individual actions can help organisations catch potential threats before they develop into larger security issues. 

Why are insider threats harder to detect compared to external attacks? 

Insider threats are uniquely challenging because they come from individuals who already have legitimate access to sensitive data and systems. Their actions often mimic regular behaviour, making them harder to identify.

Here’s why insider threats are more challenging to spot:

• Legitimate access: Insiders use authorised credentials, allowing their actions to appear routine, even when malicious.
• Familiarity with systems: Insiders know where valuable data is stored and how to avoid raising suspicion, unlike external attackers.
• Subtle behavioural shifts: Distinguishing normal activity from malicious intent is difficult. For example, extra working hours could signal dedication—or data theft.
• Disgruntled employees: Resentful or undervalued employees may act out, often without obvious warning signs.

Shockingly, some studies show that it takes an average of 85 days to contain an insider threat, giving attackers ample time to cause significant damage.

To improve detection, organisations must focus on monitoring behaviours, establishing baselines, and leveraging automated systems to flag unusual activity.

How can the risk of insider threats be mitigated?

Mitigating and managing insider threats and risks requires a comprehensive approach that combines technology, policies, and employee education.

Our recent article "​​A Comprehensive Guide to Understanding and Preventing Insider Threats" explains further.

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