Is Your Company Protected from Inside Threats?

March 15, 2023

Pathfynder, trusted and known Cyber Security Operator for Opex clients, wrote a powerful blog around a hot topic these days – insider threats. Learn in this blog how to protect your company from insider threats which have been growing by 47% since 2018. Read a real-world example from Tesla, the power of a playbook, and the positive results the Pathfynder team can produce. In one recent engagement, they increased the insider threat investigation cycle output by 400%—reducing to minutes what used to take analysts hours or days to complete. 

Let your Opex Managing Partner know if this is a hot topic in your organization, and let’s discuss how you can better protect your company against these and all cyber threats.

Insider threats are as old as history.

Take the Battle of Thermopylae, for example. This famous stalemate raged for two days despite the Persian’s 50 to 1 advantage against the Spartan defenders. Between the narrow, rugged terrain and Spartan ferocity, the Persians couldn’t break through, and the Greeks prevailed.

That was until a local Greek named Ephialtes provided the Persians intelligence of a pass they could use to outflank and defeat the Spartans. This critical information only an insider could know tipped the scales in the Persian’s favor and hastened the Spartan’s defeat.

Might the Spartans have held the pass for a few more days? Who knows. But the fact remains: the Spartans handily dispatched the Persian onslaught for two days despite being vastly outnumbered and under-resourced. Only when a Greek insider betrayed his countrymen did the Persians find a quick path to victory on the third and final day of battle.

The Company Insider Threat

The insider threat is often the least considered—but arguably the most dangerous—type of cyber threat. The reason is obvious: insider threats have already largely evaded the exterior defense companies invest so much in. This fast-growing threat—increasing 47% since 2018—must be a key consideration when a company designs its network security strategy.

Cybersecurity researchers often group insider threats into categories:

  • Unintentionally negligent employees or contractors
  • Credential thefts leading to unauthorized access to applications and systems
  • Malicious insiders who intentionally damage the organization from within

Interestingly, malicious insiders only make up 14% of all insider threat incidents. The remaining 86% result largely from careless behavior–a fact that should worry any executive that manages a large workforce with access to sensitive information.

Impactful Reminders

Buried in the news are impactful reminders that the insider threat is as serious as ever.

In 2020, news broke that the FBI arrested a Russian citizen who offered a Tesla employee $1.5 million to install ransomware on Tesla’s servers. Luckily for Elon, this employee had the integrity to pass up the bribe and instead notify the company and FBI. This very easily could have turned out very differently.

We also that same year learned through a recent plea deal that a former Cisco engineer deleted 16,000 WebEx Team accounts along with 456 virtual machines five months AFTER he left the company. This disgruntled former employee cost Cisco in excess of $2.4M to repair the damage, not to mention the resulting poor publicity and impact to operations.

High-profile incidents didn’t slow down in 2022 either. Whether it was the incident involving a research scientist at Yahoo that stole over 500,000 documents minutes after receiving a job offer from a competitor or the inadvertent disclosure of internal Microsoft credentials in August 2022, the prevalence of insider threats continues to rise.

The fact remains that insider threats (be they malicious or of the accidental variety) have been a key driver of some of the most significant compromises in recent years. In fact, the Ponemon Institute estimates that over one-third of US companies will face some type of insider threat incident within the next year. And with the costs to combat insider threats continuing to rise—up 31% since 2018 to an average of $11.5M annually—companies need to elevate the priority of defending against this threat.

A Quick Glance: Tesla & the Disgruntled Employee

Although Tesla dodged a bullet with the 2020 insider attempt, they were not quite as lucky in 2018. In the summer of that year, Elon Musk notified his staff that a “Tesla employee had conducted quite extensive and damaging sabotage to our operations​.”

In fact, that employee managed to create false usernames in order to make direct code changes to the Tesla Manufacturing Operating System. Additionally, the malicious insider managed to export large amounts of highly sensitive data to unknown third parties, which included financials and the process for manufacturing batteries for Tesla’s Model 3 vehicle.

Even more concerning, the former employee installed software on coworkers’ computers so that the data would be exported even after he left the company. According to a lawsuit filed earlier this year, the former employee was with Tesla for eight months before being assigned to a new role. Tesla believes the theft of the data came as retaliation because the former employee was upset with this reassignment.

Given how tightly Tesla guards its trade secrets, we might never know the extent of the damage this insider attack caused. But we do know that the threat from insiders can affect even the most well-funded and recognizable companies in the world—a fact that companies should consider when architecting their cyber defense strategy.

What to do?

If you feel a little unsure about your company’s insider threat program, you are not alone. Unfortunately, this is one area of cyber defense strategy that many companies are under-resourced or neglect entirely.

The good news is building a scalable insider threat program is not out of reach. For our part, Pathfynder experts have successfully architected insider threat programs for companies of all sizes, including a Fortune 50. We have a proven solution to grow insider threat programs based on different company needs and situations.

Our approach is tech-driven, replacing highly manual processes with proprietary machine-learning algorithms and automated playbooks. Over time, this approach dramatically reduces labor hours and increases the program’s effectiveness.

As an example, at the recent engagement with a Fortune 50 company, we increased insider threat investigation cycle output by 400%—reducing to minutes what used to take analysts hours or days to complete. That type of scalability is crucial in creating an insider threat program that is effective and cost-efficient.

The threat from insiders isn’t going away anytime soon. Like the Greek traitor Ephialtes, someone inside your company—by negligence or malice—will expose critical assets one day. And when that happens, what will you do about it?

If you have any questions about Pathfynder’s insider threat solution, please let us know.

About Opex Technologies

Opex Technologies is a leading Technology Transformation Advisory firm for the as a Service marketplace to Investors, Business, and IT Leaders since 2004. The Opex team helps you identify, execute, implement, and manage as a Service projects faster and with better outcomes through data-driven processes and our unmatched market expertise, institutional knowledge, combined team experience, and in-house Opex IP. For more information, contact us or connect with us on LinkedIn


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