Insider Threat Statistics You Should Know: Updated 2020

Can you give an overview of your career history prior to joining Abcam? I’ve had a fairly linear career journey in IT in general where security has always been a feature given that I’ve worked across the full systems lifecycle from project management to service delivery. A lot of my earlier career focus was on reactive remediation projects for organizations that had been compromised. More recently, I made a conscious decision to specialize and moved into a dedicated security role at Costa. It proved a successful decision and it’s led me onto CBRE and more recently Abcam where I am the Global Chief Security Officer (CSO). Can you give an outline of your responsibilities as Global Chief Security Officer of Abcam? It’s a wonderfully diverse role with many fascinating security considerations and unique challenges. Physical building management systems and specialized laboratory equipment are within my remit and they are an important part of our holistic security strategy. Abcam is a life-science company with a strong e-commerce element which facilitates external feedback on products using reviews and ratings submitted by customers. Abcam has a corporate culture driven by altruistic and humanitarian values which creates a unique security and risk profile that’s different from industries like banking and telecoms that I’ve been in previously. What are some of the challenges you’ve faced since being in the role? Abcam is undergoing a major digital transformation as part of its growth strategy. Trying to establish a security program in an organization already impacted by a large change initiative is not easy. I need to ensure the security program does not contribute to ‘change fatigue’ and lose its effectiveness. I’m attempting to deliver security across an organization in a way that emphasizes helping people to understand that security adds value rather than being a process blocker, it requires a major communication initiative. I’ve had success with this by positioning security more as a lifestyle choice, this involves helping employees understand how security behaviors can benefit their personal lives as much as it can in the business world. It’s about embedding a security message in a relatable context, that’s how I believe you create positive security behaviors. How important is the human factor when it comes to your security considerations? To me personally, it’s a key factor in the success of my strategy. The human element in cybersecurity is complicated and it shouldn’t be treated as mutually exclusive from the technology enabling solutions we implement. One of the things that technology cannot fix outright is the insider threat, whether malicious or unintentionally negligent. Training employees in order to mitigate the insider threat can’t be a one off and training only goes so far in mitigating this risk. There needs to be a balanced approach in providing human intervention through validation processes alongside automated technology solutions, one should not be relied on over the other. I also support the notion that any security initiative or new policy requires a proportional internal ‘PR’ campaign around it to be effective. For example, if we’re taking something away from users like USBs and pulling away norms you’re going to get the inevitable backlash so we have to communicate what value the users are getting out of the situation to sell it internally prior to it being implemented and impacting them. I don’t think we can easily solve the human problem, human behavior is too variable for us to nail down entirely, and we shouldn’t rely on AI technology as the panacea, but what we can do is prepare for the known threats coming at us. Security needs to be more front line and supporting users for things like phishing and whaling BEC that we know are growing more sophisticated and involve critical human decision making. When cybersecurity technology is at its best, what can it bring to an organization? Value creation…if the technology offers users an intuitive, seamless experience and ensures security, it adds immediate value. This doesn’t necessarily have to be a tangible thing, if your users embrace the solution, by extension security benefits from the success and longer-term support for its initiatives. End users ultimately want to have to have a symbiotic relationship with technology. The best solutions have to be a meshing of technology and the soft line of people, understanding how each of these couple into each other and add value is crucial. What are the common misconceptions about the role of cybersecurity? There is a belief that security owns everything, that it provides oversight for all risks but this is a huge misconception. Most of the time we’re responsible but not accountable, security awareness programs should also include a basic overview of who security is and what it is accountable for. An example would be an introduction to the classic 3 lines of defence model to help business users understand the engagement model between business risk and security. This is why it’s important to have an understanding of the softer elements of security in order to make sure it works for end users, that’s the sign of a successful security program. To achieve this, my advice is to step outside the line of what’s considered the CSO role and to be creative.  

While cybersecurity policies, procedures, and solutions are often focused on cybercriminals outside of the organization, more and more often, it’s people inside the organization who are responsible for data breaches. In fact, there’s been a 47% increase in incidents over the last two years; this includes accidental data loss and deliberate data exfiltration by negligent or disgruntled employees or contractors. This is a big problem, especially considering the global average cost of an insider threat is a whopping $11.45 million.  So, what is an insider threat and how can organizations protect themselves from their own people?

Importantly, there are two distinct types of insider threats, and understanding different motives and methods of exfiltration is key for detection and prevention. Types of Insider Threats The Malicious Insider

Malicious Insiders knowingly and intentionally steal data. For example, an employee or contractor using valuable information (like Intellectual Property, Personally Identifiable Information (PII), or financial information) for personal gain. What’s in it for the insider? It depends. Financial Incentives Data is valuable currency. Case in point: data brokering is a $200 billion industry…and this doesn’t even include the data that’s sold on the dark web. Whether it’s a list of customer email addresses or trade secrets, bad-intentioned employees with privileged access to systems and networks can cause serious damage to an organization’s bottom line and reputation. Competitive Edge It’s not uncommon for employees to download, save, send, or otherwise exfiltrate work-related documents before leaving a job or after being dismissed. While this isn’t always malicious (they could simply be adding a project to their portfolio), it certainly can be. For example, an exiting employee could take customer lists or trading algorithms to a new employer.  The prevalence of these incidents varies greatly by industry. Unsurprisingly, highly competitive industries like Finance Services, Government, and Entertainment have the highest percentage of occurrences.  The Negligent (or Unaware) Insider 

Negligent or unaware insiders are just your “average” employees doing their jobs. Unfortunately, to err is human, which means people can – and do – make mistakes. While there are a number of ways employees can mishandle data, the common thread here is that data leaks are unintentional.  Sending a misdirected email Data emailed to the incorrect recipient is the second most reported cause of data breaches. And, while it’s unintentional, the implications can be far-reaching, especially for those organizations that are bound to compliance standards or data privacy regulations. Think about it: emails contain structured and unstructured data in either the body copy, as attachments, or both. In certain industries – like healthcare and financial services – the likelihood of email communications containing sensitive information is even greater.  Falling victim to a phishing or spear phishing attack Phishing and other social engineering attacks are designed for one of three reasons: to extract sensitive information or credentials, to install malware onto a network, or to initiate a wire transfer. If the attack is successful – meaning the target (an employee) falls for the scam – there could be serious consequences.  If you want more information, read this article: Phishing vs. Spear Phishing: Differences and Defense Strategies. Losing your work device(s)   Whether it’s a mobile phone, laptop, or tablet, losing a work device could lead to a data breach, especially if the device is left unlocked.  How can I protect against Insider Threats? While organizations are certainly aware of the risks around insider threats, preventing breaches caused by malicious or careless employees is a challenge. Why? Because to detect and prevent threats, IT, security, and compliance teams have to maintain full visibility over data – both digital and physical – including who has access to it. This is no easy task. You must consider all the different perimeters (networks, endpoints, and email), take stock of the massive amount of data that your organization handles, and identify all of the employees, contractors, and other third-parties who have access to that data.  From there, it comes down to training, monitoring (both digital and physical), and the implementation of security policies, procedures, and tools.  Training Education is one of the first steps in prevention, which means malicious and accidental insider threat awareness should be incorporated into periodic security training for all employees. While training won’t prevent those with nefarious intent from exfiltrating data, it will help build a positive security culture in which employees outside of IT and security teams will know how to identify an insider threat.  Beyond that, making employees aware of the dire consequences of mistakes on email will help encourage safe and secure data handling. Monitoring Today, most sensitive data is stored on networks, devices, and the cloud, which means controlled access is absolutely essential. But, if an individual has legitimate access to a system or network, how can IT or security teams know if and when they’re exfiltrating data? Monitoring.  Telltale signs of an insider threat include: Large data or file transfers Multiple failed logins (or other unusual login activity) Incorrect software access requests Machine’s take over Abuse by Service Accounts   Of course, insider threats can still steal physical data like sensitive documents. This is one reason why controlled access to buildings and even certain offices is just as important as network security.  Security Policies, Procedures, and Tools Many organizations look to Data Loss Prevention (DLP) strategies to help mitigate risk around insider threats.  Solutions include: Firewalls Endpoint scanning Rule-based systems Anti-phishing software Machine learning technology  Unsure what exactly DLP is? Read this article: A Complete Overview of DLP. What is the best Insider Threat Solution? While there are a number of ways in which malicious or careless employees can exfiltrate (or otherwise lose) data, email is no doubt the number one threat vector.  Billions of email messages are sent every day to and from organizations and many of these emails contain highly sensitive information including personal details, medical records, intellectual property, and financial projections. That means that in order to have a chance at detecting and preventing insider threats, organizations must look at securing email communications. But, traditional DLP solutions for email fall short and today, machine learning technology is the only way to prevent data loss and data exfiltration.  In fact, Tessian was recently recognized as a Cool Vendor in Gartner’s Cool Vendors in Cloud Office Security report. Why? Because, through a combination of machine intelligence, deep content inspection of email, and stateful mapping of human relationships, Tessian’s Human Layer Security Platform prevents misdirected emails and intentional (and malicious) attempts at data exfiltration.  How does Tessian detect and prevent Insider Threats? Tessian turns an organization’s email data into its best defense against inbound and outbound email security threats. Powered by machine learning, our Human Layer Security technology understands human behavior and relationships, enabling it to automatically detect and prevent anomalous and dangerous activity like data exfiltration attempts and misdirected emails.  Importantly, Tessian’s technology automatically updates its understanding of human behavior and evolving relationships through continuous analysis and learning of the organization’s email network.  Tessian Enforcer detects and prevents data exfiltration attempts by: Analyzing historical email data to understand normal content, context, and communication patterns Establishing, mapping, and continuously updating every employee’s business and non-business email contacts into relationship graphs  Performing real-time analysis of outbound emails before they’re sent to automatically predict whether the email looks like data exfiltration. This is based on insights from relationship graphs, deep inspection of the email content, and previous user behavior Alerting users when data exfiltration attempts are detected with clear, concise, contextual warnings that reinforce security awareness training Tessian Guardian detects and prevents misdirected emails by: Analyzing historical email data to understand normal content, context, and communication patterns Establishing, mapping, and continuously updating every employee’s business and non-business email contacts into relationship graphs  Performing real-time analysis of outbound emails before they’re sent to automatically predict whether the email looks like it’s being sent to the wrong person. This is based on insights from relationship graphs, deep inspection of the email content, and previous user behavior Alerting users when a misdirected email is detected with clear, concise, contextual warnings that allow employees to correct the recipients before the email is sent

Insider threats are a big problem for organizations across industries, especially now with mass layoffs and new remote-working arrangements. Why? Because they’re so hard to detect. After all, insiders have legitimate access to systems and data, unlike the external bad actors many security policies and tools help defend against. It could be anyone, from a careless employee to a rogue business partner. That’s why we’ve put together this list of Insider Threat types and examples. By exploring different methods and motives, security, compliance, and IT leaders (and their employees) will be better equipped to spot Insider Threats before a data breach happens. Types of Insider Threats First things first, let’s define what exactly an Insider Threats is. Insider threats are people – whether employees, former employees, contractors, business partners, or vendors – with legitimate access to an organization’s networks and systems who deliberately exfiltrate data for personal gain or accidentally leak sensitive information. The key here is that there are two distinct types of Insider Threats:  The Malicious Insider  The Negligent Insider The Malicious Insider Malicious Insiders knowingly and intentionally steal data.  For example, an employee or contractor may exfiltrate valuable information (like Intellectual Property (IP), Personally Identifiable Information (PII), or financial information) for some kind of financial incentive, a competitive edge, or simply because they’re holding a grudge for being let go or furloughed.  Financial Incentives According to Verizon’s 2020 Data Breach Investigations Report, 86% of breaches are financially motivated. Whether it’s a list of customer email addresses or trade secrets, the Dark Web has helped monetize data and now, it’s easier than ever to sell information.  Click here to jump to the real-world example. Competitive Edge According to Tessian research, 45% of employees download, save, send, or otherwise exfiltrate work-related documents before leaving a job or after being dismissed. While they could simply be adding a project to their portfolio, they could also be hoping to impress or bribe a new or potential employer with trade secrets or customer information.  Click here to jump to the real-world example. A Grudge  Emotions can run high when it comes to someone’s livelihood. That’s one reason why some Insider Threats act out of revenge. In fact, according to one report, almost 10% of Insiders are motivated by a grudge. Click here to jump to the real-world example. The Negligent Insider  Negligent insiders are just your average employees who have made a mistake.  For example, an employee could send an email containing sensitive information to the wrong person, email company data to personal accounts to do some work over the weekend, fall victim to a phishing or spear phishing attack, or lose their work device.  Sending an email to the wrong person Data emailed to the incorrect recipient is the second most reported cause of data breaches. At Tessian, we call this is a misdirected email and it’s happening almost twice as much as IT leaders currently estimate.  While it’s unintentional, the consequences can be tremendous, especially for those organizations that are bound to compliance standards or data privacy regulations. Think about it: emails contain structured and unstructured data in either the body copy, as attachments, or both. In certain industries – like Healthcare and Financial Services – the likelihood of email communications containing sensitive information is even greater.  Click here to jump to the real-world example. Sending work emails “home” According to Tessian platform data, 27,500 emails are sent to personal accounts every year in organizations with 1,000 people. We call these unauthorized emails. While – yes – this could be done maliciously to exfiltrate data, the majority of employees are just trying to do their jobs. Nonetheless, sending company data to personal email accounts is often against security policies. You can read more about why that is on this blog: The Dark Side of Sending Work Emails “Home”. Click here to jump to the real-world example. Falling victim to a phishing or spear phishing attack Phishing and other social engineering attacks are designed for one of three reasons: to extract sensitive information or credentials, to install malware onto a network, or to initiate a wire transfer. If the attack is successful – meaning the target (an employee) falls for the scam – there could be serious consequences.  Click here to jump to the real-world example. Losing your work device(s)   Whether it’s a mobile phone, laptop, or tablet, losing a work device could lead to a data breach, especially if the device is left unlocked.  Misconfiguration It’s important to remember that employees aren’t just responsible for data, they’re also responsible for the architecture that supports that data. Whether it’s configuring a firewall or setting up access settings for Cloud Storage, one simple mistake could lead to a breach.  Worryingly, these incidents are on the rise. From 2018-2019, incidents involving misconfiguration have more than doubled. Click here to jump to the real-world example.

7 Examples of Insider Threats  Example #1: The employee who exfiltrated data after being fired or furloughed Since the outbreak of COVID-19, 81% of the global workforce have had their workplace fully or partially closed. And, with the economy grinding to a halt, employees across industries have been laid off or furloughed.  This has caused widespread distress. When you combine this distress with the reduced visibility of IT and security teams while their teams work from home, you’re bound to see more incidents of Malicious Insiders.  One such case involves a former employee of a medical device packaging company who was let go in early March 2020  By the end of March – and after he was given his final paycheck – Dobbins hacked into the company’s computer network, granted himself administrator access, and then edited and deleted nearly 120,000 records.  This caused significant delays in the delivery of medical equipment to healthcare providers.

Example #2: The employee who sold company data for financial gain In 2017, an employee at Bupa accessed customer information via an in-house customer relationship management system, copied the information, deleted it from the database, and then tried to sell it on the Dark Web.  The breach affected 547,000 customers and in 2018 after an investigation by the ICO, Bupa was fined £175,000.

Example #3: The employee who fell for a phishing attack While we’ve seen a spike in phishing and spear phishing attacks since the outbreak of COVID-19, these aren’t new threats. One example involves an email that was sent to a senior staff member at Australian National University. The result? 700 Megabytes of data were stolen. This data was related to both staff and students and included details like names, addresses, phone numbers, dates of birth, emergency contact numbers, tax file numbers, payroll information, bank account details, and student academic records.

Example #4: The employee who took company data to a new employer for a competitive edge This incident involves two of the biggest tech players: Google and Uber. In 2015, a lead engineer at Waymo, Google’s self-driving car project, left the company to start his own self-driving truck venture, Otto. But, before departing, he exfiltrated several trade secrets including diagrams and drawings related to simulations, radar technology, source code snippets, PDFs marked as confidential, and videos of test drives.  How? By downloading 14,000 files onto his laptop directly from Google servers. Otto was acquired by Uber after a few months, at which point Google executives discovered the breach. In the end, Waymo was awarded $245 million worth of Uber shares and, in March, the employee pleaded guilty.

Example #5: The employee who accidentally sent an email to the wrong person Misdirected emails happen more than most think. In fact, Tessian platform data shows that at least 800 misdirected emails are sent every year in organizations with 1,000 employees. But, what are the implications? It depends on what data has been exposed.  In one incident in mid-2019, the private details of 24 NHS employees were exposed after someone in the HR department accidentally sent an email to a team of senior executives. This included: Mental health information Surgery information While the employee apologized, the exposure of PII like this can lead to medical identity theft and even physical harm to the patients. 

Example #6: The employee who accidentally misconfigured access privileges Just last month, NHS coronavirus contact-tracing app details were leaked after documents hosted in Google Drive were left open for anyone with a link to view. Worse still, links to the documents were included in several others published by the NHS.  These documents – marked “SENSITIVE” and “OFFICIAL” contained information about the app’s future development roadmap and revealed that officials within the NHS and Department of Health and Social Care are worried about the app’s reliance and that it could be open to abuse that leads to public panic.

Example #7: The employee who sent company data to a personal email account We mentioned earlier that employees oftentimes email company data to themselves to work over the weekend.  But, in this incident, an employee at Boeing shared a spreadsheet with his wife in hopes that she could help solve formatting issues. While this sounds harmless, it wasn’t. The personal information of 36,000 employees were exposed, including employee ID data, places of birth, and accounting department codes.

How common are Insider Threats? Incidents involving Insider Threats are on the rise, with a marked 47% increase over the last two years. This isn’t trivial, especially considering the global average cost of an Insider Threat is $11.45 million. This is up from $8.76 in 2018. Who’s more culpable, Negligent Insiders or Malicious Insiders?  Negligent Insiders (like those who send emails to the wrong person) are responsible for 62% of all incidents Negligent Insiders who have their credentials stolen (via a phishing attack or physical theft) are responsible for 25% of all incidents Malicious Insiders are responsible for 14% of all incidents It’s worth noting, though, that credential theft is the most detrimental to an organization’s bottom line, costing an average of $2.79 million.  Which industries suffer the most? The “what, who, and why” behind incidents involving Insider Threats vary greatly by industry.  For example, customer data is most likely to be compromised by an Insider in the Healthcare industry, while money is the most common target in the Finance and Insurance sector. But, who exfiltrated the data is just as important as what data was exfiltrated. The sectors most likely to experience incidents perpetrated by trusted business partners are: Finance and Insurance Federal Government Entertainment Information Technology Healthcare State and Local Government Overall, though, when it comes to employees misusing their access privileges, the Healthcare and Manufacturing industries experience the most incidents. On the other hand, the Public Sector suffers the most from lost or stolen assets and also ranks in the top three for miscellaneous errors (for example misdirected emails) alongside Healthcare and Finance. The bottom line: Insider Threats are a growling problem. We have a solution.

How does Tessian prevent Insider Threats? Tessian turns an organization’s email data into its best defense against inbound and outbound email security threats. Powered by machine learning, our Human Layer Security technology understands human behavior and relationships, enabling it to automatically detect and prevent anomalous and dangerous activity. Tessian Enforcer detects and prevents data exfiltration attempts Tessian Guardian detects and prevents misdirected emails Tessian Defender detects and prevents spear phishing attacks Importantly, Tessian’s technology automatically updates its understanding of human behavior and evolving relationships through continuous analysis and learning of the organization’s email network.  Curious how frequently these incidents are happening in your organization? Click here for a free threat report.