Insider Threats: The Financial Fallout

Insider threats: whether malicious, negligent, or accidental are among the most costly cybersecurity risks. Their financial impact continues to climb, with recent data showing staggering losses across sectors.

Industry-Wide Costs

• Global annual cost: Estimated at $16.2 billion in 2024, up from $15.4B in 2022
• Average cost per incident: $648,062
• Median cost per incident: $250,000–$300,000, depending on sector and scope

Cost Breakdown by Insider Type

Insider Type	Avg. Cost per Incident	Notes
Malicious Insider	$871,686	Includes data theft, sabotage, espionage
Negligent Insider	$307,111	Most common type; includes accidental leaks, misconfigurations
Credential Theft	$804,997	Often leads to prolonged undetected access

Sector Comparison

Industry	Avg. Cost per Incident	Median Cost	Notes
Financial Services	$870,000+	$600,000	Highest frequency of insider-related breaches
Healthcare	$740,000	$500,000	High regulatory penalties and data sensitivity
Manufacturing	$600,000	$400,000	IP theft and sabotage risks
Government	$580,000	$350,000	Often targeted for espionage
Tech & SaaS	$520,000	$300,000	Credential misuse and data exfiltration
Retail & eCommerce	$480,000	$250,000	Payment fraud and customer data leaks

Sources: Ponemon Institute, Verizon DBIR, Proofpoint, IBM Security

Most Expensive Cases

• A financial firm suffered a $5.2M loss from a malicious insider who exfiltrated client data over 18 months
• A healthcare provider paid $3.8M in fines and remediation after an employee accidentally exposed patient records
• A tech company lost $4.1M due to stolen credentials used for IP theft and cloud resource abuse

Trends to Watch

• Detection delays: Insider threats take an average of 85 days to detect, increasing remediation costs
• Cloud environments: Credential misuse in cloud platforms is driving up costs
• Regulatory fines: Especially in healthcare and finance, penalties are compounding breach expenses