Insider threats are a massive problem due in no small part to the prevalence of apps, accounts, and systems that employees have to plug into daily. Once you’ve let an employee go, there’s no accounting for how they can steal data using their old credentials… unless you have a proper offboarding plan.
Here, we discuss why offboarding processes are crucial for preventing insider threats.
What Are Insider Threats?
Insider threats refer to risks posed by individuals within an organization, such as current or former employees, contractors, or business partners, who have access to sensitive information or systems. These threats can be malicious, such as theft, sabotage, or unintentional, like accidental data leaks.
The rise of remote work, increased employee mobility, and greater reliance on digital tools have amplified the potential for insider threats. According to a 2023 study by the Ponemon Institute, unaddressed insider threats can cost an organization an average of over $18M.
Also, a recent report by IBM on the costs of insider threats noted that the top cause of these threats is, overwhelmingly, negligence (63%). Case studies abound where organizations suffered substantial financial and reputational harm from insider threats. For instance, the infamous case of a software engineer at a tech company who stole proprietary code after being terminated highlights the devastating impact of inadequate offboarding.
What Is Offboarding?
As the opposite of “onboarding” (or bringing an employee into an organization), offboarding formally separates an employee from an organization… a complex and challenging task in a world of always-on, data-driven infrastructure.
A secure offboarding process ensures former employees cannot exploit their previous access to company systems and data. Organizations can significantly reduce the risk of insider threats by promptly revoking access and retrieving assets.
Inadequate offboarding can lead to severe security breaches. For example, a healthcare provider faced a data breach when a former employee used still-active credentials to access patient records, highlighting the need for stringent offboarding protocols.
Some basic components of offboarding include:
- Pre-offboarding: Conduct exit interviews to identify potential risks. Prepare a checklist of all assets and access points related to the employee.
- Revoke Access: Immediately disable access to all systems, including email, VPN, and internal databases. Change passwords and remove the employee from distribution lists.
- Retrieve Assets: Collect all company-owned devices and materials. Ensure that all data on these devices is securely erased or transferred.
- Compliance Check: Ensure all actions are documented for compliance purposes. Review and update the employee’s records to reflect the separation.
- Post-Offboarding Monitoring: Monitor for any unusual activity from the former employee’s accounts. Conduct audits to ensure no access points were missed.
Why Is Offboarding Important to Protect Against Insider Threats?
Offboarding is crucial in preventing insider threats because it ensures the immediate termination of access to company systems and data when an employee leaves, thereby preventing unauthorized access. This swift revocation of access minimizes the risk window for any potential exploitation by disgruntled or opportunistic ex-employees.
Additionally, secure offboarding protects sensitive information such as intellectual property, customer data, and confidential business strategies, safeguarding against data leaks that could harm the organization’s competitive position or lead to regulatory penalties.
Offboarding helps maintain data security and integrity by ensuring departing employees can no longer access sensitive data and systems, significantly mitigating insider threats.
What Is the Offboarding Process?
Manually pursuing onboarding is a recipe for security breaches and insider threats. Automating the offboarding process reduces human error and ensures consistency. Standardized workflows ensure that every step is followed diligently, minimizing the risk of oversight.
The general processes for offboarding employees securely include:
- Developing a Comprehensive Offboarding Policy: Standardize Procedures: Create a detailed offboarding policy outlining the steps for every departing employee.
- Revoking Access: Automate identity and access management (IAM) tools to revoke all system access immediately upon termination. Also, using Multi-Factor Authentication (MFA) ensures that employees can’t get into accounts once these credentials are revoked.
- Retrieving Company Assets: Collect all company-issued devices such as laptops, mobile phones, access cards, and other hardware. Ensure all company data stored on personal devices is retrieved and securely deleted.
- Conducting Exit Interviews: Use the interview to gather feedback and understand potential grievances that could translate into a security threat. Reinforce the importance of data security and confidentiality even after employment ends.
- Notifying Relevant Departments: Ensure HR, IT, security, and relevant department heads are informed about the employee’s departure to initiate the offboarding process. Have the IT department review and disable access to all systems, including third-party services.
- Updating and Monitoring Access Logs: Keep a record of all access logs and review them to ensure no unauthorized access occurs after the employee’s departure. Implement continuous monitoring to detect suspicious activity linked to the former employee’s accounts.
- Securing Communication Channels: Redirect or deactivate the employee’s email and communication accounts. Notify clients and partners about the employee’s departure and provide new contact points.
- Reviewing and Securing Intellectual Property: Secure all intellectual property, sensitive data, and trade secrets. Remove the employee’s access to ongoing projects and sensitive documents immediately.
- Monitoring Post-Departure Activity: Conduct follow-up checks to ensure the employee is not attempting to access company systems or data. Use threat intelligence to scan for any potential threats arising from the departure.
Track Your Offboarding Policies and Protect Critical Systems with Lazarus Alliance
Secure offboarding is critical to an organization’s security strategy. It directly correlates with reducing insider threats and protecting sensitive data. Organizations must review and enhance their offboarding processes, leveraging technology and best practices to mitigate these risks effectively.
To learn more, contact us.
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