Written by Tim Sadler, Co-Founder and CEO of Tessian
The massive labor upheaval that made headlines in 2021 shows no signs of abating. According to a recent U.S. employment report, 4.5 million He voluntarily resigned in November 2021, hitting an all-time high. Whether you call it a major resignation, a major reassessment, or a massive reorganization, it’s not going to go away anytime soon and can become a major data security risk for your business.
Many companies are hiring remote workers to fill the gaps created by record turnover, giving them more surface area to gain. On the other hand, the influx of employees entering or leaving the organization opens up more opportunities for data breaches. This can have serious consequences, ranging from potential violations and regulatory fines to loss of customer trust. As we continue to witness the impact of an uncertain labor market, data security must become a central focus for IT and security teams.
Mid-career employee resigns and takes data.
Turnover trends have changed since the onset of the pandemic. Turnover rates are now higher than those of early career employees who left their jobs early to switch careers or pursue passionate projects. highest among mid-level employees. These employees will be very knowledgeable and experienced in their roles. They are looking for more flexibility, better benefits and salaries, or a company mission that aligns with their values.
What does this mean for security? Mid-career employees are more likely to have detailed knowledge of the organization’s products, processes, and customers. It also gives you more access to sensitive (and potentially profitable) data.
Data breaches are a pervasive problem when employees leave a company. According to the Tessian report 45% of employees said they “stolen” their data before leaving the company or after being fired. Verizon Data Breach Investigation Report Although not always intentional, we’ve found that 72% of employees take some company data with them when they leave. We also found that 70% of intellectual property theft occurs within 90 days of an employee’s resignation announcement.
Fortunately, there are signs that security teams can help detect and prevent data breaches. The key is finding anomalous behavior. For example, major changes in email activity, employee access to documents or files at odd times, or increased data transfer. Email is a popular method for these breach attempts. Employees often email files or documents to their personal addresses, so it’s important to secure this channel before turnover spikes. It is also important for security and IT teams to participate in the offboarding process to coordinate data access when someone resigns or changes roles.
New employees are vulnerable to external security threats
New employees hired to replace manpower shortages are often vulnerable to external threats such as phishing and social engineering attacks. This is because they may not have met all of their co-workers in person, and remote employees are less familiar with co-workers and may not be able to verify legitimate requests. Malicious attackers know this and will specifically target new employees through spear phishing and social engineering attacks.
How does a malicious actor know who has recently started something new? Just a quick search on social media. According to a report by Tessian, 93% of a US employee posts about their new job on social media sites like Facebook or LinkedIn. Cybercriminals use this information to develop targeted scams designed to trick new employees into sharing valuable data or login credentials and transferring money.
According to FBISince 2016, $26 billion has been lost to these kinds of business email compromise attacks. In one costly example, a scammer pretended to be the CEO and tricked an employee into sending them. $17.2 million It was transferred to a Shanghai bank account as part of a fake deal to acquire another company. It is especially important to train new hires quickly and effectively, as they may not be familiar with the new CEO and what types of requests are unusual or questionable.
Comprehensive cybersecurity training should be part of the initial onboarding process for any new employee to help avoid these data security risks. Training should be tailored specifically to the unique needs and risks of new and remote employees and delivered in real time rather than mandatory quarterly training. Even basic security hygiene can be effective in preventing data loss. New and existing employees must be constantly reminded of best practices and what to look for in suspicious emails.
Data security and employment issues are intertwined.
Whether it’s hiring new employees, handling turnover, or preventing employee fatigue while continuing to do their jobs, you need to engage your IT and security teams to anticipate and address data security impacts. In these cases, the security of the “human layer” or the employees who handle the company’s most sensitive data should be a priority.
Securing critical communication channels like email and establishing real-time automated cybersecurity training for your employees are critical parts of the solution. By making your employees part of the solution, you can work productively and safely. Encourage them to report mistakes or suspicious activity to their IT and security teams without fear of repercussions. When employees retire, they should review their data security policies and set clear expectations to prevent unintentional disclosure. By building these processes into the entire lifecycle of the employee experience, organizations can avoid turning a significant resignation into a data security nightmare.
About the author
Tim is the CEO and co-founder of Tessian. He holds three master’s degrees in Design, Engineering and Innovation from Imperial College and previously worked in HSBC’s Global Banking division. Learn more about the team Twitter and on Tessian.com.
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