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The Rising Threat from Insiders – Get Your House in Order

Client Alert

What is Insider Threat?

As its name implies, an ‘Insider Threat’ originates inside an organization. An ‘insider’ is any person who has or had authorized access to or knowledge of an organization’s resources, including personnel, facilities, information, equipment, networks, and systems. ‘Insider threat’ can manifest from malicious, complacent, negligent or unintentional acts that negatively affect the integrity, confidentiality, and availability of the organization, its data, personnel, or facilities. Certainly, ‘Insider Threat’ can be an activity by a bad actor employee, but can also arise from an inadvertent or unknowing action inside an organization (such as an employee who unintentionally opens a phishing email or clicks on a malicious link).

Rising Frequency; Rising Costs.

Protecting against ‘Insider Threat’ is a data security concern for all organizations. The realities facing organizations today include:

  • The frequency and cost of preventing insider attacks is rising;
  • User negligence is the most common cause of a data breach; and
  • Insider threat deterrence must become a key element in a cybersecurity posture.

According to a 2020 study[1], the average global cost of ​insider threats​ rose by ​31% in two years and the frequency of these incidents spiked by ​47%​ in the same time period. The risk is also present for small and medium sized businesses (SMBs). While 72% of organizations reported an increase in insider attacks in 2020, 66% of key decision makers in SMBs do not think breaches are likely to occur. Only 14% of SMBs have any kind of breach defenses in place; the rest are vulnerable to potentially devastating cyberattacks[2]. While daunting, the reality of modern business dictates that companies of all sizes, in all industries, must be cognizant of cybersecurity issues and prepare accordingly.

How can your company guard against Insider Threat?

The following is a brief list of action items your company should implement to address ‘Insider Threat’:

  • Put it in writing – An organization’s security policy should include procedures to prevent and detect misuse of company resources, guidelines for conducting insider investigations, and the potential consequences to the individual. Written policies not only preserve continuity, but also clearly outline rules and expectations in the organization.
  • Train and educate – The Identity Management Institute states that employee education remains key to breach prevention, including cybersecurity awareness during onboarding and routine drills to practice attack and breach responses.
  • Dictate Acceptable Use – An organization should detail an organization’s rules and expectations regarding technology use. This includes considering acceptable behavior on networks and devices.
  • Be transparent about employee privacy expectations - Organizations need to balance reducing insider threats and protecting employee privacy. Communicate and educate employees regarding the security policy and IT rules. Explain the program's objectives, while training employees about their role in security.
  • Get Technical – Invest in IT and consult with legal and technical cybersecurity professionals to find a solution that works for your organization.

Prudent businesses will create and maintain written policies as it relates to cybersecurity and data protection. BMD can assist in crafting the policies and identifying proper security frameworks and connecting you with technical experts to implement. 

If you have any questions about whether your cybersecurity risks, and whether your business is protected, please contact BMD’s Cybersecurity Practice Leaders, Brandon Pauley at btpauley@bmdllc.com or Kyle Johnson at kajohnson@bmdllc.com.

[1] https://www.proofpoint.com/uk/resources/threat-reports/2020-cost-of-insider-threats and Cybersecurity Insiders’ 2020 Insider Threat Report.

[2] https://identitymanagementinstitute.org/government-cybersecurity-and-insider-threats/


Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.

Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.

Will Student-Athlete Collectives Survive NIL Changes?

By July 2025 the landscape of student-athlete funding will look nothing like the current landscape, so preparing now is a must. If you are a student-athlete, the parent of a student-athlete, a university/college, or “booster”, it behooves you to understand these evolving issues.