The Hidden Risk Within - Why Insider Threats Demand Greater Attention

When organisations think about security, the focus often turns outward to hackers, ransomware, and cyberattacks. Yet, some of the most damaging incidents originate much closer to home. According to the Ponemon Institute’s 2023 Cost of Insider Threats Global Report, insider related incidents now cost organisations an average of £11.45 million, with malicious cases exceeding £756,000 per event.

These figures highlight an uncomfortable truth: even well secured organisations can be undermined from within. Despite significant investments in cybersecurity and physical protection, many still struggle to detect and manage risks that stem from trusted individuals.

Understanding Insider Threats

Insider threats arise when people within an organisation, whether through intent, negligence, or manipulation, compromise security, data, or reputation. Typical examples include:

• Malicious acts: Theft, sabotage, or deliberate data exfiltration.

• Negligence: Accidental data leaks, careless handling of sensitive information, or social engineering errors.

• Operational disruption: Mistakes or process failures that unintentionally expose vulnerabilities.

As hybrid working, cloud collaboration, and global supply chains expand, the risk landscape becomes even more complex. External actors increasingly exploit insiders through coercion, deception, or financial incentives, turning legitimate access into a gateway for exploitation.

Why Traditional Security Measures Fall Short

Firewalls, monitoring tools, and access controls are essential, but they are not enough. Most systems are built to defend against external threats, not to interpret human behaviour or intent. As a result:

• Suspicious activities often blend in with normal user behaviour.

• Alerts focus on technical anomalies rather than human context.

• Subtle warning signs, such as dissatisfaction or unusual access patterns, go unnoticed.

The outcome is predictable: delayed detection, limited situational awareness, and costly reactive responses.

Building a Culture of Early Intervention

The most effective defence against insider threats does not start with technology, it starts with people. Employees are often the first to notice when something feels wrong. But without the right culture, many stay silent. Fear of retaliation, uncertainty about reporting channels, or lack of trust in management can all prevent concerns from being raised.

Providing safe, independent ways to share information empowers staff to act responsibly without risk. Equally important is ensuring that reports are handled impartially and transformed into actionable intelligence, not buried under bureaucracy.

From Reporting to Response

When handled correctly, information from employees can become an early warning system. Independent management of reports ensures fairness, transparency, and credibility, removing perceived bias and protecting confidentiality. It also relieves internal teams of administrative burdens, allowing them to focus on analysis, response, and improvement.

This process not only captures potential misconduct or risk indicators but also helps identify weaknesses in policies, access controls, and organisational culture before they escalate.

Training as a Force Multiplier

Technology and process can only go so far. True resilience depends on awareness, education, and preparedness across every level of the organisation. Effective training programmes help employees:

• Recognise early signs of insider activity.

• Understand how to report safely and appropriately.

• Practise realistic scenarios to build confidence in responding to security concerns.

Continuous education strengthens collective vigilance and embeds responsibility into everyday behaviour, transforming employees from potential vulnerabilities into active defenders.

A Real World Lesson

A global technology company experienced a significant insider incident when a senior research scientist downloaded around 570,000 pages of proprietary data, including source code, algorithms, and system architecture, shortly before joining a competitor. Despite advanced digital defences, early warning signs such as unusual data access went unnoticed and unreported.

The event highlighted critical gaps in employee awareness, behavioural monitoring, and internal reporting processes. The resulting loss of intellectual property caused reputational harm and raised questions about how trusted insiders are monitored during employment transitions.

When the organisation later introduced trusted reporting channels, formalised incident capture, and focused awareness training, it rebuilt employee confidence and strengthened early detection across its teams.

This real case demonstrates that even the most advanced organisations are vulnerable if cultural and procedural safeguards are missing.

(Source: Mimecast, “Examples of Insider Threats,” 2022)

Turning Awareness into Action

To stay ahead of insider risks, organisations should focus on four key principles:

1. Empower reporting: Provide safe, independent, and trusted mechanisms for staff to share concerns.

   
   

2. Capture incidents systematically: Establish clear, structured processes for documenting and assessing security events.

   
   

3. Educate continuously: Deliver relevant, scenario-based training that reinforces awareness and responsibility.

   
   

4. Integrate intelligence: Use insights from human reporting and incident data to refine policies and strengthen controls.

   
   

Final Thoughts

Insider threats are not just a security issue, they are a people issue. The organisations that succeed in managing them are those that recognise the human element at every stage of defence: awareness, communication, and accountability.

By building trust, encouraging open communication, and providing the right tools and education, any organisation can shift from a reactive stance to a proactive culture of resilience.