Insider Threats: 5 Warning Signs That an Employee May Be Stealing Your Company Data

One of the most significant threats to your small or medium-sized business isn’t from external hackers but could be sitting right across from you. Insider threats—specifically employees who misappropriate company data—represent a growing concern for businesses of all sizes.

According to the 2024 Cost of Insider Threats Global Report by Ponemon Institute, the total average annual cost of insider threats has risen to $17.4 million up from $16.2 million in 2023.

Here are five red flags that might indicate an employee is stealing or planning to steal your company’s valuable data:

1. Unusual Access Patterns

When employees suddenly begin accessing files, databases, or systems they don’t typically use for their normal job duties, it’s time to pay attention. Some examples of suspicious activities include asking for access to confidential data, intentionally making security errors or ignoring security protocols, performing tasks usually done by other departments, and transferring or copying files to an external USB.

Look for login attempts outside normal business hours or from unusual locations, especially if the employee has no clear reason to be working at those times. According to insider threat experts, sudden changes in the frequency of access to certain information—such as accessing a secure file server system ten times more often than the average employee in the same role—can be a significant indicator of potential data theft.

2. Noticeable Changes in Behavior

Pay attention to shifts in an employee’s attitude or work habits. Disgruntled employees looking to hurt an organization or employees bribed to sell credentials to outside parties for profit are common profiles in data theft cases. An employee who suddenly becomes secretive, defensive, or displays resentment toward colleagues or management might be planning to take company data.

Malicious insiders are usually disgruntled current employees, or disgruntled former employees whose access credentials have not been retired, who intentionally misuse their access for revenge, financial gain or both. Watch for employees who express strong disagreement with company policies, appear frustrated about missed promotions, or openly talk about finding new employment.

3. Unusual Data Movement or Storage Activities

Be alert to employees who suddenly start downloading, copying, or transferring large amounts of data, especially if this is outside their normal workflow. Modern insider threats take advantage of cloud services, personal devices, and remote work environments to move data outside the organization’s control.

Common warning signs include endpoints where employees are copying files onto local USB keys, contractors accessing confidential files and copying them locally, or employees sending unnamed files to printers (a common data theft trick involving copying sensitive data, pasting it into a new, empty Word doc, and printing it).

4. Bypassing Security Protocols

Employees who consistently circumvent security measures may be attempting to hide their activities. The Insider Threat Report by Cybersecurity Insiders found that 58% of organizations identified negligent insiders who ignore policies as a major insider threat concern. These insiders may attempt to bypass security controls to simplify their tasks.

Watch for employees who:

• Disable security software
• Use unauthorized communication channels
• Share credentials
• Consistently work around established security protocols
• Refuse to adopt new security measures

5. Digital Breadcrumbs

Today’s data thieves often leave electronic traces of their activities. The 2024 Insider Threat Report notes that 64% of malicious IP theft investigations included some form of data preparation, aggregation, and/or conversion. Additionally, 37% of all unusual aggregation steps included converting data to some form of image or PDF (e.g., screenshots).

Pay attention to employees who are:

• Converting documents to formats that are easier to exfiltrate
• Creating unusual archives or compressed files
• Using personal email or cloud storage services for work files
• Conducting excessive searches across company databases
• Using dedicated cleaning software to remove traces of their activities

 Protecting Your Business From Insider Threats

Prevention is always better than remediation when it comes to data theft. Here are some protective measures SMBs can implement:

1. Establish Clear Policies: Create and communicate explicit data handling policies, including consequences for violations.
2. Implement the Principle of Least Privilege: Enforce the principle of least privilege to ensure employees only access data essential to their roles and conduct regular access reviews to minimize exposure.
3. Monitor User Activity: Use real-time monitoring tools to detect anomalous activities such as unusual login times, excessive data downloads, or access from unexpected locations.
4. Conduct Regular Security Training: Educate employees on recognizing phishing attempts, securing credentials, and reporting suspicious behavior promptly.
5. Create Secure Offboarding Procedures: Employees may have a proprietary attitude towards data they worked on during their employment even if they leave the company on good terms. HR plays a key role in reminding departing employees of the company’s data security policies as well as notifying IT and security teams when an employee is scheduled to depart.

For SMBs without dedicated security teams, managed IT security services can provide the monitoring and expertise needed to detect and respond to insider threats before significant damage occurs.

 The Bottom Line

While most employees are trustworthy, data theft remains a significant risk that can threaten the survival of your business. By staying alert to these warning signs and implementing appropriate preventive measures, you can significantly reduce the likelihood of becoming a victim of insider data theft.

Remember, a balanced approach that combines vigilance with trust is key—creating a security-conscious culture while avoiding a workplace atmosphere of constant suspicion will help protect both your data and your company culture.

How CinchOps Can Help Secure Your Business from Insider Threats

At CinchOps, we understand that most small and medium-sized businesses don’t have the resources to implement comprehensive insider threat protection on their own. Our team brings decades of experience in implementing practical, cost-effective security solutions tailored specifically for SMBs.

We can help you build a multi-layered defense that combines technology, policy, and people:

1. Comprehensive Monitoring Solutions: We implement user behavior analytics and activity monitoring that detect suspicious patterns while respecting employee privacy. Our systems can alert you to potential data theft attempts before critical information leaves your organization.
2. Custom Security Policies: We’ll help you develop and implement clear, enforceable data handling policies that protect your business while maintaining productivity.
3. Automated Threat Detection: Our advanced detection systems can identify unusual file access, suspicious downloads, and other warning signs of potential insider threats in real-time.
4. Secure User Management: We’ll implement robust permission controls and ensure that access rights are properly managed throughout the employee lifecycle—from onboarding to offboarding.
5. Security Awareness Training: We provide targeted training programs that help your team understand the importance of data security and recognize potential threats.

The cost of an insider breach can be devastating for an SMB, but with the right partner, you can significantly reduce your risk. CinchOps provides the expertise, tools, and ongoing support you need to protect your valuable data from both malicious and inadvertent insider threats.

Don’t wait until after a breach to take action. Contact CinchOps today for a comprehensive security assessment and discover how our tailored insider threat protection can safeguard your business’s future.

Want to learn more about protecting your business from insider threats? Join our upcoming webinar on May 21st at 1:00 PM CT, where we’ll provide practical strategies for detecting and preventing data theft from within your organization. Click below to register…