Facing the reality of internal risk: Thwarting insider threats

In response to this perception, companies have implemented layers of physical and IT security around the perimeter of their organisations—and yet we are still vulnerable as evidenced by the number of IT incursions we see every day.

Truth is, the reality of IT sabotage is more complex. Forrester Research highlighted in a 2007 report that approximately 70 percent of all data theft is from internal sources – a staggering figure. The trading scandal at Societe Generale in France in early 2008 cost the company an estimated US$7.5 billion, and is the latest headline-grabbing example of how lax security and poor password management can be exploited from within.

In recent years, advances in perimeter security technology—such as packet filters and intrusion prevention and detection tools—have enabled organisations to reduce the risk of external network attacks. However, most companies have done little to counter internal threats—threats that can be even more damaging to a company’s business and reputation, exposing lax policies and inadequate management. To add insult to injury, insider threats are perpetrated by people who at some point were either employed and/or considered trusted by the organisation.