I’ve witnessed or investigated five different insider threats where employees directly stole money or data from their employer. All but one of these incidents were companies well under 100 employees.
- Multiple employees reading the emails of company executives and other staff and blackmailing the CEO
- Employee stealing money from the cash drawer
- Employee being paid, lying about their activity while working for another company
- C Level leader inappropriately compensating certain staff, essentially stealing from the company
- Multiple employees in multiple countries committing wire fraud and embezzling from the company
Insider threats are one of the most elusive and potentially damaging risks that small businesses face today. While much attention goes toward guarding against external cyber threats, data shows that a significant proportion of cybersecurity incidents stem from within an organization. For small businesses, where teams are tight-knit, and resources may be limited, this reality can feel shocking. But with the right knowledge and strategies, it’s entirely possible to mitigate these threats and keep your business, your clients, and your reputation secure.
Understanding Insider Threats
An insider threat is any risk posed to an organization by individuals within it—employees, former employees, contractors, or any individual with access to the organization’s systems. These threats often manifest in two ways:
1. Malicious Intent: Some insiders intentionally misuse their access to systems and data for financial gain, revenge, or even espionage. These individuals may be disgruntled employees, former employees who still have access, or contractors with unauthorized intentions.
2. Negligence or Accidental Actions: In many cases, insider threats arise not from malice but from mistakes. For example, an employee might click a phishing link, use weak passwords, or mistakenly share sensitive information, leading to data exposure or breaches.
Small businesses, with fewer layers of security and often limited cybersecurity training, are especially vulnerable to these types of incidents. But don’t worry! With the following strategies, you can protect your business, reduce risks, and foster a secure, vigilant workplace.
Strategies to Identify and Mitigate Insider Threats
Here’s how small business owners can proactively counter insider threats:
1. Limit Access Based on Need-to-Know Basis
Not everyone in your organization needs access to every piece of data. By enforcing role-based access controls (RBAC), you can limit employees’ access to only the data they need to perform their jobs. For example:
- A finance employee may need access to accounting software but not to sensitive customer data.
- Customer service representatives may require access to order records but not to the business’s internal financial details.
Regularly review access permissions and revoke them for anyone who no longer requires specific access due to role changes or departures. Sacrificing security for perceived convenience only weakens your defenses.
2. Strengthen Password Policies and Access Controls
Weak passwords are a frequent gateway for data breaches. Encourage your team to use complex, unique passwords, with the assistance of a secured password manager, and implement multi-factor authentication (MFA) wherever possible. MFA ensures that even if passwords are compromised, an additional layer of security is needed to gain access. In addition to these practices, consider using a password management tool to keep passwords secure and track employee access. Use stronger MFA methods like mobile authenticator apps rather than less secure methods like email and SMS.
>> Pro Tip: Add risk-based authentication layers for stronger security.
3. Implement Continuous Monitoring
Small businesses should prioritize monitoring software that can detect unusual or unauthorized behavior. Continuous monitoring tools can:
- Track log-in activity, flagging any unusual or repeated login attempts.
- Abnormal or impossible logins like foreign countries or multiple attempts from geographically impossible areas (like a login from New Jersey with another login an hour later from California.
- Detect large data deletions, downloads or transfers, which may signal data exfiltration.
- Alert administrators to unauthorized access or activities, enabling swift action.
Using a managed security provider (MSP) can give you access to these services without the overhead of a full-time IT staff, making continuous monitoring accessible to small businesses.
4. Educate and Train Your Employees
Transform your greatest security risk into a Human Firewall. Employee vigilance for threats, both human and electronic, is a critical requirement for your defense system. People can be both the strongest defense and the weakest link in cybersecurity. Regular training sessions can keep your team informed and vigilant against risks. Some training essentials include:
– Phishing Awareness: Teach employees to recognize and report phishing emails or messages, a common tactic to infiltrate systems.
– Digital Threats: Teach employees to recognize other internet dangers like downloads, ads or links on websites or online chats. Be cautious of fake sites impersonating others, and suspicious sites or offers.
– Safe Data Handling: Educate them about handling sensitive data, how to securely share information, and avoiding storing it in unauthorized places.
– Incident Reporting: Ensure that employees know how and where to report security incidents quickly.
Reinforcing security training periodically can make employees more aware and proactive.
5. Enforce Clear Exit Protocols
A former employee retaining access is one of the easiest ways for insider threats to persist. Establish a thorough exit process to immediately revoke access to all company accounts, systems, and resources once an employee leaves. Ensure that:
– All passwords the departing employee used are reset, including MFA and recovery methods.
– Devices are collected or remotely wiped if applicable.
– Any access granted to external accounts or tools is removed promptly.
This might seem like a formality, but it’s crucial in preventing potential breaches from former insiders.
6. Conduct Regular Security Audits
Security audits help you spot vulnerabilities and prevent potential threats. Even as a small business, periodic reviews of your systems, policies, and processes can highlight areas that need improvement. Whether you perform these internally or work with an external cybersecurity firm, audits can provide peace of mind and a proactive approach to protecting your business.
7. Build a Culture of Cybersecurity Awareness
The ultimate line of defense against insider threats is a workplace culture that values cybersecurity and reporting suspicious activity without penalty for mistakes. When security is integrated into your company’s core, employees are more likely to follow best practices and recognize potential risks. Establish regular discussions, share updates on new threats, and encourage employees to be vigilant for any suspicious activity.
The Benefits of Proactive Insider Threat Management
By implementing these practices, you’re shielding your small business from potential internal threats and bolstering its reputation and trustworthiness. In today’s competitive marketplace, where customers are increasingly concerned about privacy and data security, trust can be a decisive factor.
Your business doesn’t need to be big to have robust security. With the right approach, small businesses can effectively mitigate insider threats, protect their data, and build a secure environment for both employees and customers. Investing in proactive, accessible cybersecurity solutions not only safeguards your assets but strengthens your business’s foundation for future success.
