What Is an Insider Threat? A Small Business Primer

Summary: What small and midsized businesses need to know about potential insider threat indicators, who the likely suspects might include and how to stop such attacks.

How Can Small Companies Discover if They Have an Insider Threat?

The rise of cybercrime has catapulted stories about major data breaches into the headlines. Reporting about cyberattacks, ransomware incidents and breaches affecting power grids and institutions have become more frequent. Government and businesses everywhere have had trouble keeping up with the new and ever-changing security protocols required for solid cybersecurity.

But what if you are unaware of nefarious cyber events emanating from within your organization? How can you know if one of your “trusted employees” is planning to steal your data or help a cybercriminal? How can small and midsized businesses (SMBs) with limited budgets and personnel be aware of such attacks and prepare to defend against them? At first, the task might seem daunting, but we are all creatures of habit, and computers routinely and efficiently capture those habits. Furthermore, the IT world has isolated several potential threat indicators.

What Is an Insider Threat and Why Are Small Business Vulnerable?

An insider threat occurs when someone within your organization, such as an employee, contractor or vendor, misuses access to harm the business. This can be intentional, like data theft, or accidental, such as clicking a malicious link that exposes sensitive systems or client information.

Small businesses are particularly vulnerable to such threats because they often operate with high levels of trust and limited oversight. Employees may have broad access to systems and data, and there may be fewer formal security controls in place. Without monitoring or clear policies, risky behavior can go unnoticed until damage is already done.

Q: What are common signs of a potential insider threat?

A: Warning signs include unusual login times, large data downloads, repeated access to files outside someone’s role or sudden attempts to bypass security controls. Behavioral changes, such as dissatisfaction or conflicts, may also be potential insider threat indicators, especially if combined with elevated system access.

What Are Potential Inside Threat Indicators?

There are several typical patterns of behavior of someone planning an insider attack:

• Research – Someone preparing for a data theft will start by figuring out what data he or she wants to steal and its location. The hacker will also try to determine the cybersecurity in place and how best to circumvent it. For example, if internal hackers have stolen credentials for access privileges, they might test those permission parameters. An insider attack will leave a pattern or “trail” of such actions in a system, but the attacks are still tough to predict in advance
• Attempts to Bypass Security Controls – Many businesses have taken steps to lock down their cybersecurity to thwart outside attempts at cyberattacks. But malicious insiders might have an insider’s knowledge of what has the best protections, what they are and how to find a back door to get around them. Again, however, every attempt leaves evidence behind
• Collection and Aggregation of Data – As the malicious insiders move forward with their research, they usually create files to collect and store the data in one place. Often a workstation or an external server will serve as an aggregation point
• Covering Tracks – Once insiders have collected the sensitive data, they usually take steps to mask or hide their work. Unfortunately, the “cover-up” is also a piece of evidence left behind that can lead to the discovery of a planned insider attack
• Exfiltration – The inside hackers must devise a plan to remove the unauthorized data they have collected. Successfully identifying the insiders will provide a starting point for tracking how the data was extracted and where it has been transferred

One problem is that the inside perpetrators might be in management. For example, an unscrupulous CEO who ordinarily could be a person in authority has no motivation to stop his or her own illegal acts. Therefore, someone within every organization needs to be the sole point person, whether or not he or she is the IT professional who will ultimately address these threats. By doing so, a company can reduce the universe of people who can potentially be the culprit in an insider breach.

Q: How can small businesses reduce insider threat risks?

A: You can reduce risk by limiting access based on job roles, using multifactor authentication and monitoring account activity for unusual behavior. Regular security awareness training helps employees understand policies and reporting procedures, while clear offboarding processes remove access immediately when someone leaves.

Insider Threat Case Study

A small multi-office accounting firm in Baltimore had substantial cybersecurity in place. The firm had worked with a local IT company that conscientiously locked down its many endpoints and felt it had sufficient network security. After all, the IT company installed a strong VPN, secure password managers and all the layers of protection a high-compliance accounting service requires. As a result, attempts at outsider attacks were routinely thwarted before severe data breaches could occur.

However, unbeknownst to the rest of management, the COO of the firm was in personal financial peril. He was living beyond his means and had acquired a lot of debt. In a desperate attempt to save his personal financial solvency, the executive began planning to sell sensitive client data to a professional cybercriminal in Prague.

Fortunately, the accounting firm had its IT expert come in for a quarterly evaluation. While analyzing system events, the firm noticed some suspicious activities that didn’t look like they came from outside attackers. Several unsuccessful attempts at logging into proprietary data were evident. However, the IT professional didn’t immediately examine C-suite personnel because it never occurred to her that an executive of the company would be the perpetrator. After arduous testing, a trail of nefarious activity was traced back to the COO, and he resigned in disgrace. Fortunately, the plan was uncovered before the illegal sale of data take place.

Q: What should you do if you suspect an insider threat?

A: If you suspect insider activity, document unusual behavior and preserve relevant system logs. Restrict access where necessary and involve your IT provider or a cybersecurity professional to investigate. Acting quickly helps prevent further data loss and supports proper response, including legal or regulatory steps if required.

How Should Companies Deal with Potential Insider Threat Indicators?

Small to midsized businesses can’t afford to ignore cybersecurity. Malicious insider threats can be addressed only by IT professionals, who are essential to safely doing business and protecting hard-earned business data. They know how to uncover insider attacks, and how to keep up with cybercriminals, who continue to search for new ways to attack companies.

Reach out if you’re looking for managed cybersecurity services in the greater New York City area or contact a small business IT security expert near you to understand what an insider threat is along with potential insider threat indicators and vulnerabilities.