When you read headlines about cyberattacks, the spotlight usually shines on shadowy hackers from outside the organization. What you rarely see are the stories of insiders who misuse their access or make costly mistakes. Yet research shows that insider incidents are among the most damaging risks companies face today. According to the Ponemon Institute, the majority of organizations experience insider related incidents, whether caused by negligence or malicious intent, and the average cost of handling them runs into millions of dollars each year (CNWR, 2025). So why do we hear so little about them? And what actually happens inside a company when one of these cases is discovered?
Why Insider Threats Stay Hidden
Unlike external breaches, insider incidents often do not trigger mandatory disclosure laws. If no regulated data such as personal health information or financial records is exposed, companies may not be legally required to report the event. Many organizations also fear reputational damage if they admit that trusted employees or contractors abused their access. In sensitive industries like defense or energy, insider cases may even be classified and handled under national security protocols. This means that while surveys show over 80 percent of organizations face insider incidents, only a fraction ever reach the public eye (Virtual Armour, 2025).
How Companies Handle Insider Threats Internally
Detection and Investigation
Modern detection relies on advanced analytics. User and Entity Behavior Analytics tools establish baselines of normal activity and flag deviations. Security teams use SIEM platforms and machine learning to identify anomalies and assign risk scores. These systems help spot suspicious downloads, unusual logins, or privilege misuse before damage escalates (Cybersecurity News, 2025).
Containment
Once suspicious activity is confirmed, companies act quickly. Accounts are disabled, credentials revoked, and devices quarantined. Incident response playbooks guide containment actions, often automated through orchestration platforms. The goal is to stop the insider from causing further harm.
Disciplinary and Legal Action
HR steps in to manage employee relations, disciplinary hearings, or termination. Legal and compliance teams assess whether disclosure laws apply. In cases of fraud, intellectual property theft, or espionage, organizations escalate to law enforcement. Malicious insiders may face criminal charges, while negligent insiders may face corrective training or dismissal.
Remediation
After containment, companies focus on recovery. This includes restoring compromised systems, rotating credentials, and updating policies. Security awareness training is reinforced to reduce negligent incidents. Many organizations also review access controls and tighten monitoring thresholds.
Governance and Oversight
Insider incidents are reported to executive risk committees alongside external cyber threats. Some Fortune 500 companies have dedicated insider threat governance boards that review cases regularly. Cyber insurance carriers may require detailed incident reports before covering losses, adding another layer of accountability.
HR Versus Security
It is tempting to think insider threats are just HR problems. In reality, HR handles the human side of discipline and termination, but the core response is a coordinated effort across security, legal, and governance. Treating insider threats as only HR matters would miss the operational, financial, and national security stakes involved.
The Takeaway
Insider threats are security incidents first and HR matters second. They are handled through a structured process that blends detection, containment, legal review, and executive oversight. The reason you rarely hear about them is not because they are rare, but because most are managed internally and never disclosed. The iceberg effect applies here: surveys show widespread insider risk, but the public only sees the tip.
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