The majority of businesses rely heavily on networks, emails, software and computers to operate smoothly. However, as many organisations are safeguarding themselves from cyberattacks and hackers from the outside, they usually forget that the danger can also come from the inside. Threats can also come from staff members, business partners or former employees or anyone who has access to your system. These threats are called insider threats and they have become a concern. Let’s discuss it in detail.
What are insider threats?
Insider threats are security dangers that come from those who have access to an organisation’s network, systems or data. These threats are caused by insiders, individuals who are trusted by the company and already have access to crucial information. An insider threat can take place for various reasons, such as:
- Third-party insiders: At times, business partners, vendors or contractors also gain access to your systems. It can lead to risks.
- Malicious insiders (intentional): These are individuals who harm a business purposely. For instance, a fired staff member steals data to take revenge or sell it to a competitor.
- Careless insider (unintentional): These individuals don’t mean to cause any harm, but do it by mistake. For instance, a worker who clicks on a phishing link or shares a password.
Other examples of insider threats include:
- Using weak passwords or sharing passwords
- Data leaks or theft
- Downloading harmful software
- Sending out business secrets to competitors
- Accessing data without permission
Insider threats - a growing concern in India
As many organisations are opting for remote working, cloud solutions and digitalization, the dangers of insider threats are also increasing.
Here are some reasons why such threats are rising in India:
- Weak security systems: Small and mid-sized enterprises often lack robust IT systems and cyber awareness.
- High employee turnover: When the staff keeps on changing, data can get copied or misused.
- Lack of good training: Many employees don’t know what actions are dangerous or harmful in cyberspace.
- Third-party vendors or outsourcing: Giving access to outside parties without strict controls can lead to data misuse.
Many sectors, such as e-commerce, education, banking, healthcare and IT, are vulnerable because of the massive amount of sensitive data they handle.
Impact of insider threats on Indian businesses
The damage caused by the insider threats is more severe than that caused by the external attacks. It's primarily because the insiders already have access to all the systems and are well-aware of how things function.
Here are ways these risks can affect Indian businesses:
- Monetary loss: Breaches can lead to huge costs on loss of consumers, legal problems and data recovery.
- Reputation damage: Clients or consumers will lose their trust in an organisation when their data gets misused or leaked.
- Loss of intellectual property: Client data, strategies and designs can be sold to rival companies.
- Legal issues: Indian laws, such as the data protection policies and the Information Technology Act, might hold organisations accountable for failing to safeguard data.
- Operational disruptions: Crucial systems can get shut down or the data can be deleted, impacting all day-to-day functions.
How can cyber insurance help with insider threats?
Although excellent security technology, training and practices are crucial, insider threats can still take place. That’s where you need a cyber insurance policy. It provides businesses with legal and monetary support after a cyber-related incident, including those conducted by insiders.
Here is how cyber insurance helps:
Covers monetary losses
When an insider can cause system failure or a data breach, the cyber policy can help cover the costs related to the following:
- Regulatory penalties and fines
- Legal fees
- Business interruption
- Data recovery
Helps with response and investigation
Most cyber polices provide support from cybersecurity specialists who help in investigating the attack, locating the cause and fixing the damage.
Consumer support and notification
When the customer data gets affected, this particular insurance helps in informing all the affected individuals and might even provide them with identity protection.
Covers legal expenses
Cyber policies also help in covering the cost of settlements, court cases and attorneys when a business gets sued for data breaches.
Crisis management support
Some insurance policies also offer PR (public relations) support to manage the reputation damage after a breach takes place.
Conclusion
Insider threats are real and may have serious repercussions on an organisation. They don’t come from outside hackers but from individuals within. For businesses, particularly the medium-sized and small ones, the risk is much higher because of limited cybersecurity resources and awareness. Although companies can't prevent every insider threat, IT monitoring, access control, periodic staff training and good cyber policies can make a huge difference.
Besides having liability insurance can offer coverage when inside threats lead to third-party lawsuits or losses. Together with a cyber insurance plan, it creates a complete risk management plan for today’s businesses.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.