In the financial sector, where trust and confidentiality are of the highest concern, insider threats represent one of the most significant security risks. Unlike external cyberattacks, insider threats originate within the organization, often involving employees, contractors, board members, or business partners with authorized access to sensitive information.

The consequences? Data breaches, damage to a company’s brand and reputation, fines, blackmail, ransom, insider trading, and financial losses that can cripple even the most robust organizations.

As insider threats grow in complexity, financial institutions require proactive strategies to protect their sensitive information. Preparing for a proactive defense includes knowing the risks, the warning signs, and what solutions can help organizations address these threats effectively.

What Are Insider Security Threats?

Insider threats occur when someone with legitimate access to an organization’s systems, data, or facilities misuses their privilege or access, either intentionally or accidentally. In the financial industry, this could involve:

• Data theft: Exfiltration of sensitive client data, proprietary investment algorithms, or transaction records.
• Fraudulent activities: Misusing privileged information for financial gain.
• Accidental leaks: Mishandling or misdelivering private sensitive information, such as emails or shared files.

These threats are particularly concerning in finance because of the actual or potential high value of the data at stake—credit card or banking information, account details, and trade secrets, to name a few.

Related Read – Data Security: Data Theft vs Data Leaks

Why Are Insider Threats on the Rise?

1. Remote Work and Increased Digital Collaboration

The rapid explosive shift to remote work that the pandemic initiated and the growth of dispersed teams, combined with widespread adoption of collaboration tools have expanded the attack surface. With most office work completed and shared from anywhere in the world, the idea of “leaving work at the office” is a distant memory, leaving the privacy and authenticity of information a top concern. As sensitive files are frequently shared across cloud platforms, there are increased opportunities for unauthorized access or accidental leaks.

2. Proliferation of Sophisticated Threats

Disgruntled employees or financially motivated insiders may collude with external actors, or use advanced tools and techniques, to leverage their access and bypass traditional security measures – e.g., account credentials and MFA.

3. Regulatory Pressure

Stringent compliance requirements such as GDPR, CCPA, and SOX make data breaches particularly costly for finance corporations. Insiders represent a unique challenge in meeting these regulatory demands. For example, with the surge of “return to work” initiatives encouraging more staff to travel back to the office, previously enforced physical security measures, e.g. locking one’s computer or other devices before walking away, became lax because of secluded working environments.  

Did You Know?

Warning Signs of Insider Threats

To mitigate insider risks, there are warning signs to monitor, including:

• Unusual file access or download activity.
• Attempts to bypass security protocols.
• Increased use of file transfer tools for personal reasons.
• Employee dissatisfaction or sudden behavioral changes.

Addressing Insider Threats: Best Practices

1. Implement Role-Based Access Controls (RBAC)

Restrict data access based on employee roles and responsibilities. This minimizes the exposure of sensitive information to only those who need it.

2. Leverage Forensic Watermarking

By embedding unique, invisible watermarks in sensitive documents, you can trace the source of leaks back to specific individuals—even if files are modified or screenshotted. EchoMark specializes in such solutions, providing unmatched accountability for all shared information  – emails, documents, images, and more.

3. Adopt File Encryption for Sensitive Data

Encrypt all sensitive files, both in transit and at rest. Combined with forensic watermarking, encryption ensures that even if data is stolen, it remains unusable to unauthorized users.

4. Monitor User Activity in Real Time

Proactive monitoring helps detect unusual behavior, such as excessive data downloads or access attempts outside regular work hours.

5. Educate Employees About Insider Risks

Regular training programs can help employees understand the importance of data security, their role in safeguarding sensitive information, and the consequences of mishandling it.

How EchoMark Protects the Finance Industry

EchoMark offers finance corporations a cutting-edge solution to mitigate insider threats:

• Forensic Watermarking: Embed invisible, personalized markers into documents, emails, and images. These watermarks are resilient against tampering and provide traceability, ensuring accountability for every file shared.
• AI-Powered Tools: Automatically generate unique document versions for each recipient to track and identify leaks with precision.
• Seamless Integration: EchoMark integrates easily with existing collaboration tools and platforms like Google Workspace and Microsoft Exchange, enhancing security without disrupting workflows.
• Cloud Security Enhancements: Ensure that sensitive files shared via email or network sharing remain secure and traceable.

By combining forensic watermarking with real-time monitoring and proactive security practices, EchoMark empowers organizations to detect, deter, and address insider threats before they escalate.

Ready to Secure Your Financial Data?

Insider threats that lead to data loss or information theft, don’t have to be inevitable. With the right tools and strategies, you can protect your organization’s most sensitive information while fostering a culture of trust and accountability.

Discover how EchoMark can help. Book a demo today to see how our solutions can fortify your defenses against insider risks. Equip your organization with the tools it needs to stay secure and safeguard what matters most.

Resources: 

Insider threats pose a significant and costly risk to financial institutions. Consider the following data points:

• Rising Incidents and Costs: Insider threat incidents have surged by 44% over the past two years, with the average cost per incident exceeding $15 million. Proofpoint
  
  
• Financial Sector Impact: Financial services firms face the highest costs from insider threats, averaging $21.25 million per incident—a 47% increase in recent years. VPN Alert
  
  
• Detection Delays: Incidents that take over 90 days to contain cost organizations an average of $18.33 million, underscoring the importance of swift detection and response. Syteca