Insider Threat Awareness: Protecting Organizations from Internal Risks

When discussing cybersecurity threats, most think of hackers, ransomware, or phishing. However, insider threats—caused by employees, contractors, or vendors—can be just as damaging so, protecting organizations from internal risks is significant in 2025.

According to the Ponemon Institute, insider threats cost organizations an average of $16.2 million per year. Research from Carnegie Mellon University shows that many employees who steal data do so within 30 days before leaving a company.

Real-world cases like the Tesla data leak (2023) and the Capital One breach (2019) highlight the severe damage insider threats can cause. In Tesla’s case, two former employees leaked 100GB of data, exposing 75,735 individuals' personal details. The Capital One breach compromised 100 million records, leading to a $190 million settlement.

In this blog, we’ll explore what insider threats are, the warning signs, and how AI-driven security solutions help detect and prevent them before they cause harm.

Learn more about recognizing and reporting insider threats in our detailed article: Secure Human Behavior - Recognizing and Reporting Insider Threats.

Understanding Insider Threats

Many organizations focus on external cyber threats, but insider threats can be just as damaging. These threats come from individuals within the organization who have authorized access to sensitive data and systems.

Who Is an Insider?

An insider is anyone with legitimate access to an organization's internal systems, including:

• Employees (current or former)
• Contractors and freelancers
• Vendors and third-party service providers
• Business partners with privileged access

While these individuals are essential to operations, misusing their access—whether intentionally or accidentally—can create serious cybersecurity risks.

What Is an Insider Threat?

An insider threat occurs when someone with legitimate access to an organization's systems or data compromises security, either intentionally or accidentally.

Types of Insider Threats:

• Data leaks – Sharing or exposing sensitive information, whether deliberate or accidental.
• Sabotage – Deleting files, altering code, or damaging systems to harm the organization.
• Intellectual property theft – Stealing trade secrets, proprietary data, or customer records.
• Fraud – Manipulating internal systems for personal gain.
• Negligence – Careless security practices that lead to breaches.

What Is NOT an Insider Threat?

Not every mistake is an insider threat. For example:

• Forgetting a password and getting locked out.
• An IT admin mistyping a command that briefly disrupts operations.
• Clicking on a phishing link due to lack of awareness.

The key difference is intent. Malicious actions or repeated negligence despite warnings can escalate into an insider threat.

To learn how to recognize and report insider threats, check out Secure Human Behavior – Recognizing and Reporting Insider Threats.

Motivations Behind Insider Threats

Understanding why insiders pose a threat helps organizations detect and prevent security risks before they cause damage.

Whistleblowing vs. Malicious Intent

Not all insider actions are driven by harmful intent—some aim to expose wrongdoing, while others seek personal gain or revenge.

• Whistleblowers expose unethical or illegal activities within an organization. While controversial, their goal is usually transparency, not harm.
• Malicious insiders act out of self-interest or revenge, often causing financial, operational, or reputational damage.

Common Insider Threat Motivations

Insiders may act for different reasons, ranging from financial incentives to personal conflicts or external pressure.

• Financial gain – Selling company secrets or engaging in insider trading.
• Revenge – Retaliating after termination or workplace conflicts.
• Ideological beliefs – Leaking data due to personal or political motives.
• Pressure from others – Being threatened or manipulated by external attackers.
• Negligence – Careless handling of sensitive information, leading to breaches.

By recognizing these motivations, organizations can monitor unusual behavior, enforce stricter access controls, and strengthen employee training to reduce insider threats.

Identifying Insider Threats

Detecting insider threats requires analyzing employee behavior and identifying high-risk individuals before they cause harm. Certain patterns and security gaps make these threats more likely.

Types of Insider Threats

Insider threats fall into three main categories, each posing unique risks:

• Negligent Insiders – Careless employees who expose data, such as clicking phishing links or misplacing devices.
• Malicious Insiders – Employees who intentionally steal, leak, or sabotage company assets.
• Compromised Insiders – Employees whose credentials have been hijacked by cybercriminals.

Who Is Most Likely to Become an Insider Threat?

Certain individuals are more likely to engage in insider threats due to personal or professional circumstances:

• Disgruntled employees seeking retaliation.
• Financially strained staff who may sell data for quick cash.
• Contractors or vendors with excessive access.
• Former employees who retain unauthorized system access.

Security Gaps That Enable Insider Threats

Weak security practices often create opportunities for insider threats to go undetected:

• Inadequate security training, leaving employees unaware of risks.
• Overly permissive access controls, allowing unauthorized data exposure.
• Lack of activity monitoring, missing sudden spikes in data access.

Closing these gaps with proactive monitoring and strict access policies is key to reducing insider threats.

Real-Life Insider Threat Examples

According to Cybersecurity Insiders’ 2024 Insider Threat Report, 83% of organizations experienced at least one insider attack in the past year. These incidents often lead to data breaches, intellectual property theft, or security lapses, exposing companies to financial and reputational damage.

Data Theft and Espionage: The Yahoo Case (2022)

In May 2022, Yahoo research scientist Qian Sang downloaded 570,000 pages of proprietary data from the company’s AdLearn advertising platform—just minutes after accepting a job offer from a competitor, The Trade Desk. The stolen files contained sensitive trade secrets and competitive analysis reports on The Trade Desk itself.

Yahoo detected the theft weeks later, issued a cease-and-desist letter, and filed three legal claims against Sang for intellectual property theft. The company argued that the stolen data could give rivals a significant advantage, highlighting the serious risks of insider data exfiltration.

Exposure of Critical Infrastructure: The Microsoft GitHub Leak (2022)

In August 2022, Microsoft employees accidentally leaked login credentials for the company’s GitHub infrastructure, potentially exposing Azure cloud servers and internal systems. If cybercriminals had exploited the leak, they could have accessed Microsoft’s source code and sensitive customer data.

Had European customer data been exposed, Microsoft could have faced a GDPR fine of up to €20 million. Fortunately, cybersecurity firm spiderSilk discovered the breach and alerted Microsoft before any damage occurred. This incident underscores how even unintentional mistakes can create significant security risks.

These cases highlight how insider threats—whether intentional theft or accidental leaks—can cause severe damage. Strong access controls, monitoring, and rapid response are essential to mitigating these risks.

What Are Behavioral & Technical Indicators for Insiders?

Insider threats often show warning signs before causing damage. Monitoring behavioral and technical red flags can help organizations detect risks early. Employees planning to misuse their access may display noticeable changes in behavior or leave digital traces that indicate suspicious activity.

Behavioral Warning Signs:

Certain actions or attitude shifts may suggest an emerging insider threat:

• Unusual work hours or unauthorized remote access to company systems.
• Disengaged or hostile behavior, especially after workplace conflicts.
• Repeated attempts to access restricted data without a valid reason.
• Sudden resignation followed by large data transfers or unusual activity.

Technical Warning Signs:

Unusual system activity may indicate an insider attempting to bypass security controls:

• Unauthorized login attempts, especially outside normal work hours.
• Unusually large file transfers to external drives or cloud storage.
• Disabling security tools or modifying logs to hide activity.

By tracking these indicators, businesses can detect insider threats before they escalate into serious security breaches.

Top Strategies for Mitigating Insider Threats

Organizations can minimize insider threats by combining technology, policies, and employee training. A proactive approach ensures risks are detected early and addressed before they escalate.

Data-Driven Threat Detection

Advanced security tools help identify unusual activity and prevent data breaches:

• User and Entity Behavior Analytics (UEBA) – Uses AI to detect suspicious behavior patterns.
• Security Information and Event Management (SIEM) – Centralizes security logs for real-time threat monitoring.
• Data Loss Prevention (DLP) tools – Prevent unauthorized file transfers and protect sensitive data.

Read more on DLP solutions in the Keepnet guide.

Employee Assistance Programs (EAPs)

Workplace stress and financial struggles can push employees toward risky behavior. EAPs help by:

• Identifying and supporting employees at risk before they become threats.
• Providing mental health resources to reduce stress-related incidents.

Security Awareness Training

Educating employees is crucial in preventing insider threats. Training programs should cover:

• How to recognize and report suspicious activities confidentially.
• Understanding company policies on data security and insider threats.

For more details, explore the Keepnet blog on Security Awareness Training.

By combining behavior monitoring, security tools, and employee education, organizations can proactively prevent insider threats before they cause serious damage.

Reporting and Incident Response

A clear and structured reporting process is essential for identifying and responding to insider threats before they escalate. Organizations must ensure employees feel safe reporting suspicious activity without fear of retaliation. A well-defined approach helps detect threats early and enables a swift response to minimize damage.

Key Roles in Insider Threat Management

Handling insider threats requires coordination across different teams:

• CISOs & IT Teams – Monitor systems for unusual activity and insider threat indicators.
• HR Teams – Address workplace conflicts early to prevent potential retaliation-driven threats.
• Employees – Should be encouraged to report suspicious behavior without hesitation.

Establishing a Secure Reporting Process

To encourage reporting and protect whistleblowers, organizations should:

• Implement anonymous whistleblowing systems to protect those who report threats.
• Enforce zero-retaliation policies to encourage reporting without fear of consequences.

What to Report & How to Respond

Recognizing and reporting early warning signs can prevent insider threats from escalating. Employees should report any unusual activity, including:

• Unauthorized file access or large, unexplained data transfers.
• Attempts to disable security controls or bypass system restrictions.
• Colleagues displaying suspicious behavior, such as discussing selling company data.

By building a culture of accountability and equipping teams with a clear reporting structure, organizations can detect and neutralize insider threats before they cause serious harm.

By building a culture of accountability and equipping teams with a clear reporting structure, organizations can detect and neutralize insider threats before they cause serious harm.

To understand why employees hesitate to report insider threats, read the Keepnet blog on Why Do Employees Fail to Report Insider Threats? Understanding the Psychology Behind Inaction.

Also, read this blog for further insights on “Secure Human Behavior – Recognizing and Reporting Insider Threats”

How Keepnet’s Extended Human Risk Management (xHRM) Platform Protects Against Insider Threats

Insider threats require proactive detection and employee training. Keepnet’s Extended Human Risk Management (xHRM) platform addresses these risks with two key solutions:

Keepnet Incident Responder: AI-Powered Threat Detection

Keepnet Incident Responder automates email threat detection, investigation, and response, eliminating risks 48.6 times faster with AI-driven analytics.

• Scan and remove threats from 7,500 inboxes in under 5 minutes.
• AI-powered detection prevents zero-day attacks.
• Seamless integration with Office 365, Google Workspace, and Exchange.

Check out Keepnet Incident Responder to automate and accelerate insider threat response.

Keepnet Security Awareness Training: Reducing Human Risk

Keepnet’s Security Awareness Training helps organizations reduce insider risk by up to 90% with adaptive learning.

• 2,100+ courses in 36+ languages for global teams.
• Gamified, personalized training improves engagement and retention.
• Real-world scenarios reinforce key security concepts.

Explore Keepnet Adaptive Security Awareness Training to educate employees and prevent insider threats.