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

  • Survey: 60 Percent of Organizations Using AI in IT Infrastructure

    Netwrix, a cybersecurity provider focused on data and identity threats, today announced the release of its annual global 2025 Cybersecurity Trends Report based on a global survey of 2,150 IT and security professionals from 121 countries. It reveals that 60% of organizations are already using artificial intelligence (AI) in their IT infrastructure and 30% are considering implementing AI. Read Now

  • New Research Reveals Global Video Surveillance Industry Perspectives on AI

    Axis Communications, the global industry leader in video surveillance, has released its latest research report, ‘The State of AI in Video Surveillance,’ which explores global industry perspectives on the use of AI in the security industry and beyond. The report reveals current attitudes on AI technologies thanks to in-depth interviews with AI experts from Axis’ global network and a comprehensive survey of more than 5,800 respondents, including distributors, channel partners, and end customers across 68 countries. The resulting insights cover AI integration and the opportunities and challenges that exist with regard to security, safety, business intelligence, and operational efficiency. Read Now

  • SIA Urges Tariff Relief for Security Industry Products

    Today, the Security Industry Association has sent a letter to U.S. Trade Representative Jamieson Greer and U.S. Secretary of Commerce Howard Lutnick requesting relief from tariffs for security industry products and asking that the Trump administration formulate a process that allows companies to apply for product-specific exemptions. The security industry is an important segment of the U.S. economy, contributing over $430 billion in total economic impact and supporting over 2.1 million jobs. Read Now

  • Report Shows Cybercriminals Continue Pivot to Stealthier Tactics

    IBM recently released the 2025 X-Force Threat Intelligence Index highlighting that cybercriminals continued to pivot to stealthier tactics, with lower-profile credential theft spiking, while ransomware attacks on enterprises declined. IBM X-Force observed an 84% increase in emails delivering infostealers in 2024 compared to the prior year, a method threat actors relied heavily on to scale identity attacks. Read Now

  • 2025 Security LeadHER Conference Program Announced

    ASIS International and the Security Industry Association (SIA) – the leading membership associations for the security industry – have announced details for the 2025 Security LeadHER conference, a special event dedicated to advancing, connecting and empowering women in the security profession. The third annual Security LeadHER conference will be held Monday, June 9 – Tuesday, June 10, 2025, at the Detroit Marriott Renaissance Center in Detroit, Michigan. This carefully crafted program represents a comprehensive professional development opportunity for women in security this year. To view the full lineup at this year’s event, please visit securityleadher.org. Read Now

    • Industry Events

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.

  • ComNet CNGE6FX2TX4PoE

    The ComNet cost-efficient CNGE6FX2TX4PoE is a six-port switch that offers four Gbps TX ports that support the IEEE802.3at standard and provide up to 30 watts of PoE to PDs. It also has a dedicated FX/TX combination port as well as a single FX SFP to act as an additional port or an uplink port, giving the user additional options in managing network traffic. The CNGE6FX2TX4PoE is designed for use in unconditioned environments and typically used in perimeter surveillance.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.