Why Internal Data Security Should Be a Top Priority for Your Business

Enterprises worldwide spend millions to protect their data from external threats but overlook one crucial aspect: the vulnerabilities that come from within. Whether it's accidental data exposure, misuse of privileges, or deliberate insider sabotage, these threats can be just as damaging as external cyberattacks.

The risks are even higher for small and medium-sized businesses (SMBs), which often lack the know-how to safeguard their operations. For example, many companies turn to a website builder as a first step to establishing their online presence. These tools often come with built-in SSL encryption, two-factor authentication (2FA), automatic updates, and other features meant to increase data security.

To reduce exposure, SMBs must implement additional layers of internal security: managing access controls, reviewing permissions, enabling remote wipe, and, most critically, educating staff. In 2024, 68% of breaches involved a human element.

So, what are the most common internal data security threats? Most importantly, what can you do to protect your business and customers? Let’s find out.

What Is Internal Data Security?

Internal data security refers to the systems and strategies that protect sensitive information from risks inside your organization. These risks can include:

• Unauthorized access
• Employee error
• Inappropriate data usage
• Data loss or disruption
• Internal theft

Example: A team member accidentally shares customer data via an unsecured cloud folder. The result? A potential breach with serious legal, financial, and reputational consequences.

Or imagine a former contractor still having backend access after their engagement ends. These overlooked details can create real-world risk.

A strong internal internal security framework mitigates these threats and strengthens compliance, integrity, and operational resilience

Why Internal Threats Demand More Attention Than Ever

Protecting your data is more important than ever before, given the surge in remote work and other factors, such as the increasingly complex compliance landscape.

For example, remote employees can share sensitive information over public WiFi or use personal devices for work projects. They could also unknowingly click on malicious links or fall for scams, leaving data exposed to breaches.

According to Proxyrack research, companies where 81%-100% of employees work remotely see average breach costs of $5.5 million. Even firms with 61%-80% remote workforces face losses over $4.3 million per incident.

Managing modern tech stacks also presents challenges. With teams spread across apps and platforms, it becomes harder to monitor permissions, control data flows, and enforce consistent policies.

Wire addresses this challenge directly, offering a secure platform where internal access and communication are protected by default. All messages, calls, and files are fully encrypted, keeping sensitive data safe.

Understanding Internal Threats

Insider threats to corporate data range from human error and negligence to malicious insiders and third-party cybersecurity risks. They can also include non-human factors like power failures, system crashes, and hardware issues, just to name a few.

Such things can happen to any organization, no matter its size or industry. A good example is the Australian Red Cross Blood Service. In 2016, its staff accidentally shared a data file containing the personal information of over 550,000 blood donors on a public-facing web server.

Another example comes from Uber, which fell victim to a social engineering attack in 2022.

One of its employees unknowingly shared a password with a hacker posing as an IT staff member, giving them access to Uber's internal systems. This breach allowed the hacker to infiltrate critical infrastructure networks and expose sensitive company data. 

The first step to mitigating these risks is to acknowledge them. With that in mind, let's go over the most common threats to data security. 

1. Human Error & Negligence

Even the most well-meaning employees can make costly mistakes under stress, fatigue, or distraction.
Example: You’re working late. An email arrives from what looks like a trusted supplier. You open the invoice without double-checking. Minutes later, your files are encrypted, and a ransom note appears.

2. Malicious Insiders

There are cases where a former or current employee, vendor, or other internal users intentionally compromise an organization's data. Some do it for financial gain, while others want to cause disruption, expose perceived wrongdoings, or get revenge.

For example, in 2022, a former Amazon Web Services employee hacked the company's servers and downloaded sensitive information, including the data of more than 30 entities, to mine cryptocurrency. 

Her actions caused significant financial damage to Capital One and other affected parties. The companies in question have been left to deal with the costs of data recovery, customer notifications, regulatory fines, and reputational harm. 

3. Privilege Misuse

This refers to using legitimate access in inappropriate ways, such as copying proprietary data, or deleting sensitive records.

In some cases, insiders elevate their own access to perform unauthorized actions, as happened during a breach at Yahoo in 2022.

4. Insider Collusion & Espionage

These are typically employees or contractors who use what they know about a company for revenge, financial gain, or both. Think of second streamers, or current employees who misuse confidential data to generate revenue through fraud or other illicit means. 

For instance, in 2022, a former X (Twitter) employee was found guilty of acting as an agent for Saudi Arabia. Investigators found that he accessed and shared private user data, such as emails and phone numbers, with the Saudi government in exchange for money and gifts.

This category also includes so-called "moles," or outsiders with insider access to a company's data or systems. A "mole" may pretend to be an employee, contractor, supplier, or partner to gain access to sensitive information.

5. Third-Party Risks

Vendors and subcontractors with access to your systems can introduce vulnerabilities. Weak passwords, outdated software, or excessive permissions on their end can become your problem.

Wire’s federated deployment and strict access controls help limit third-party exposure, giving organizations more control over who gets access and how.

6. Non-Human Threats

Some internal threats stem from technical or environmental factors that you may not have control over. Let's see a few examples:

• System crashes: No technology is perfect, and your company's system could crash when you least expect it. Such incidents can result in data corruption, operational downtime, and diminished productivity
• Hardware failures: Your servers, hard drives, or network equipment can fail without warning, leading to data loss
• Power outages: Sudden power failures can disrupt access to critical data and delay the detection of cyber attacks

The solution? Prevention through backups, hardware maintenance, and clear recovery processes.

Best Practices for Internal Data Security

In 2024, the average cost of a breach reached $4.88 million. No matter your business size, you simply can't afford to have your data lost or compromised.

Here’s how to strengthen your internal security posture:

1. Build a Data Protection Strategy

Start with a plan focused on three pillars: security, access, and availability.
For example, think about how you'll prevent customer information from ending up in the wrong hands. A good strategy is to encrypt this data both at rest and in transit so it remains unreadable to unauthorized parties. 

Start by identifying the security risks you're facing right now. Take the steps to reduce these risks (e.g., set up firewalls and limit access where necessary), then implement further measures that require more time and resources.

2. Remove Data You Don’t Need

Excess data = unnecessary risk. Delete old records, redundant backups, and outdated credentials.
For instance, old customer records can provide marketing insights, but that's not a reason to store them for years. Instead, extract key trends, anonymize the data, and delete the original records. Not only does this practice reduce your liability, but it also makes it easier to meet regulatory compliance. 

On a similar note, it's a good idea to remove former employee data (e.g., login credentials), temporary files that are no longer needed, redundant backups, and inactive contacts. If you stop using certain apps or software, delete your data from their systems.

3. Protect Remote Workers

Enhance your remote security posture by:

• Providing secure, company-approved devices
• Installing firewalls and remote wipe tools
• Enforcing strong passwords and 2FA
• Training staff to recognize phishing attempts
• Using a secure platform for all internal communications

Wire makes security seamless, whether your teams are on-site or remote.

4. Monitor Internal Activity

User Activity Monitoring (UAM) tools help detect suspicious behavior, flag unauthorized access, and track changes to files or systems.

Communicate transparently about monitoring practices, ensuring compliance and building trust with your workforce.

5. Back Up Data Regularly

Use the 3-2-1 rule: keep three copies of your data, stored on two different media, with one off-site. Automate backups where possible, and test them regularly.

Secure Internal Collaboration with Wire

Data security management requires an incremental approach and ongoing adjustments. You can't just push a button or install an app to safeguard your data from insider threats.

Wire provides a secure, compliant platform for collaboration, trusted by governments, defense agencies, and enterprises across Europe.

• End-to-end encrypted messages, calls, and file sharing
• On-premise deployment and zero-trust architecture
• Messaging Layer Security (MLS) for advanced protection
• Seamless UX across mobile and desktop devices