Study: Insider-Driven Data Loss Events Cost an Average of $15 Million Per Incident

Code42 Software recently released its annual Data Exposure Report (DER) for 2024, examining the intricacies of insider threats facing organizations today. The study found that data loss from insiders poses increased threats to security, further exacerbated by the introduction of AI and generative AI (GenAI) technology.

Since 2021, there has been a 28% average increase in monthly insider-driven data exposure, loss, leak, and theft events. The majority of respondents (85%) expect this trend to continue over the next 12 months. While most companies (99%) have data protection solutions in place, 78% of cybersecurity leaders admit they’ve still had sensitive data breached, leaked, or exposed. As today’s risks are increasingly driven by AI and GenAI, the way employees work, and the proliferation of cloud applications, respondents state they need more visibility into source code sent to repositories (88%), files sent to personal cloud accounts (87%), and customer relationship management (CRM) system data downloads (90%).

“Today, data is highly portable. While AI and cloud technologies are igniting new business ventures that allow employees to connect, create, and collaborate, they also make it easier to leak critical corporate data like source code and IP,” said Joe Payne, President and CEO of Code42. “This year, the research highlights the new challenges posed by AI as data sets are being pushed outside of organizations to train LLMs. We also see that source code is now considered the most important data to protect, other than financial information and research data. This is a critical finding, as most data protection tools are incapable of spotting the most common source code exfiltration techniques."

The cybersecurity skills gap creates a black hole for IP loss and compliance

Over three-fourths surveyed (79%) believe their cybersecurity team has a shortage of skilled workers, leading cybersecurity leaders to turn to AI (83%) and GenAI (92%) technology to fill the talent gap; but these aren’t a 1:1 replacement, and the report also cautions against the possible data loss risks of these tools.

The study also found:

  • Two-thirds of cybersecurity leaders (68%) state that data regulations are unclear, while even more (73%) are not fully confident their company is complying with new data protection laws
  • The vast majority (98%) believe their data security training requires improvement, with almost half of respondents (44%) believing it requires a complete overhaul
AI and GenAI are creating unique risks to data security The vast majority (85%) of cybersecurity leaders agree that their company’s sensitive data is increasingly vulnerable to new AI technologies.

The study also found:

  • 87% are concerned their employees may inadvertently expose sensitive data to competitors by inputting it into GenAI
  • 87% are concerned their employees are not following their GenAI policy

Employee age and role are creating unique risks to data security

Risks can vary by employee age and role, with companies more concerned about data security breaches from Generation Z and Millennials falling victim to phishing attacks (61%), oversharing company information online (60%), sending company files/data to personal accounts/devices (62%), and putting sensitive data into GenAI tools (58%).

Respondents also believe senior management (81%) and board members (71%) pose the greatest risk to their company’s data security, likely due to having wide-reaching access to the most sensitive data.

Insider data loss drains time, money, and security teams

Insider-driven data exposure, loss, leak, and theft events can have vast financial repercussions, with cybersecurity leaders estimating that a single event would cost their company $15 million, on average.

The study also found:

  • Respondents spend an average of 3 hours per day investigating insider-driven data events
  • 72% of cybersecurity leaders are worried they could lose their job from an unaddressed insider breach
  • To be effective, companies believe that data protection solutions should offer speed and ease of investigation (42%), visibility into file contents and metadata (39%), and should be able to integrate with other tech solutions (38%)

Featured

  • Allegion, Comfort Technologies Implement Mobile Credentials at the Artisan Apartment Homes in Florida

    Artisan Apartment Homes, a luxury apartment complex in Dunedin, Florida, recently transitioned from mechanical keys to electronic locks and centralized system software with support from Allegion US, a leading provider of security solutions, technology and services, and Florida-based Comfort Technologies, which specializes in deploying multifamily access control, IoT devices and software management solutions. Read Now

  • Mall of America Deploys AI-Powered Analytics to Enhance Parking Intelligence

    Mall of America®, the largest shopping and entertainment complex in North America, announced an expansion of its ongoing partnership with Axis Communications to deploy cutting-edge car-counting video analytics across more than a dozen locations. With this expansion, Mall of America (MOA) has boosted operational efficiency, improved safety and security, and enabled more informed decision-making around employee scheduling and streamlining transportation for large events. Read Now

  • Security Industry Association Launches New “askSIA” AI Tool

    The Security Industry Association (SIA) has unveiled a brand-new SIA member benefit – askSIA, a conversational AI agent designed to help users get the most out of their SIA membership, easily access SIA resources and find the latest information on SIA’s training and courses, reports and publications, events, certification offerings and more. SIA members can easily find askSIA by visiting the SIA homepage or looking for the askSIA icon in the top left of webpages. Read Now

    • Industry Events
  • Industry Embraces Mobile Access, Biometrics and AI

    A combination of evolving workplace dynamics, technology innovation and new user expectations is changing how people enter and interact with physical spaces. Access control is at the heart of these changes. Combined with biometrics and AI, mobile access control has become increasingly crucial for deploying entry solutions that are seamless, secure and adaptive to user needs. Read Now

  • Sustainable Video Solution Delivered for Landmark City of London Office Development

    An advanced, end-to-end video solution from IDIS, with a focus on reducing waste and costs, has helped a major office development in the City of London align its security with sustainability objectives. Read Now

New Products

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.