How to Build an Effective Insider Threat Program in 8 Steps

Insider risks are a growing concern for organizations globally. These threats, originating from within, can be just as harmful — if not more so — than external attacks.

Why are insider threats so damaging? Here are some stats:

• In 2025, 77% of organizations experienced insider-driven data loss.
• These threats cost businesses an average of $17.4 million in 2025, up from $16.2 million in 2023.

And while detection is getting easier thanks to AI, with more companies shifting to hybrid and remote work models, the risk of insider threats will only continue to grow.

Unmonitored access, accidental data leaks, and malicious actions from employees, contractors, or business partners can expose sensitive information and damage a company’s reputation.

To combat these rising risks, building a comprehensive insider threat program is no longer optional — it’s a necessity. Cybersecurity measures are essential to protect against insider threats, including those involving corporate espionage.

By developing a structured approach to identifying, mitigating, and managing these threats, you can safeguard your organization from within.

In this guide, we’ll walk through the 8 critical steps to establish an effective insider threat program, starting with Step 1: Performing a Threat Risk Assessment.

Arrivia stopped insider data theft using Teramind – watch the video to find out more 👇

View a Live Teramind Demo →

1. Perform a Threat Risk Assessment

Performing a Threat Risk Assessment (TRA) is crucial for identifying, evaluating, and prioritizing potential insider attacks.

This process helps organizations mitigate the risk of insider threats before they become real incidents, ensuring a robust insider threat management program.

Here’s how to do this:

Evaluate Current Internal Security Measures

• Assess your existing information security protocols, such as access controls and network monitoring.
• Your goal is to identify weaknesses in your insider threat detection capabilities.

Identify Key Assets

• Pinpoint critical assets such as intellectual property, customer databases, financial information, and proprietary software that need protection.
• Examine key stakeholders in strategic positions to determine whether their access is necessary for their role.
  • For example, “Does the head of marketing have access to engineering blueprints they don’t need?”

Assess Types of Insider Threats

• Malicious threats (e.g., sabotage, counterintelligence, fraud, data theft) may arise from disgruntled employees or those with malicious intent.
• Unintentional threats (e.g., negligence, human error) can occur when employees accidentally compromise security.

Risk Quantification

Quantify the likelihood and impact of different insider threats:

• Likelihood: How often might unauthorized access attempts occur?
• Impact: What would be the consequence if a breach were to happen?

Prioritize risks based on these factors to create a focus for mitigation.

💡 Teramind Tip

Collaborate with multiple departments — IT, HR, and Legal — during the risk assessment, as they can provide critical insights into methodologies for mitigating insider threats.

• IT can provide insights into technical vulnerabilities (e.g., access violations).
• HR can flag behavioral indicators, like changes in employee morale or unusual patterns.
• Legal can ensure the process complies with data privacy regulations.

2. Get Leadership Buy-In

Securing leadership buy-in ensures that resources, budget, and organizational focus are aligned to tackle insider attacks. Without this, any efforts may lack the backing needed to implement effective policies and tools. 

Here’s how to do this:

Present the Business Impact

• Highlight how insider threats can lead to data breaches, financial losses, and damage to the company’s reputation.
• Use industry statistics and real-world case studies to illustrate the potential consequences of neglecting insider threats. 

Align With Business Objectives

• Tie the insider risk management strategy to the company’s growth goals.
  • For example, if the company’s goal is to expand into new markets in the next quarter, explain how insider threat protection is vital for securing intellectual property and ensuring a smooth transition without facing restrictions. 

Secure Commitment for Resources

• Explain how insider threats could lead to IP loss, data theft, or customer trust issues, driving home the need for investments in an insider threat prevention program.
  • When leaders understand the direct impact on profitability, they’re more likely to commit the required resources.

Tailor Your Message to Each Executive

For example, CFOs will be more concerned with financial impact, while the CISO will focus on security metrics.

💡 Teramind Tip

Visual aids such as risk heat maps can help leadership understand the potential impacts of security incidents, improving buy-in for implementing an effective insider threat management program.

3. Create an Insider Threat Response Team

An Insider Threat Response Team (ITRT) is your organization’s first line of defense against insider threats.

This team is responsible for managing, detecting, and mitigating insider threats. It must be agile, cross-functional, and well-versed in addressing both external threats and internal security issues.

Here’s how to build your ITRT:

Assemble a Cross-Functional Team

Your insider threat team should include:

• IT Security Experts. These professionals handle the technical aspects of identifying and mitigating insider threats, such as network monitoring, endpoint security, and data loss prevention (DLP) tools.
• Human Resources (HR). HR plays a vital role in addressing behavioral issues, facilitating employee interviews, and identifying potential risks tied to employee dissatisfaction, personal conflicts, or stress.
• Legal and Compliance. Legal experts ensure that investigations comply with privacy laws, regulatory requirements, and internal policies. They’re also responsible for advising on legal risks and taking action if violations are discovered.
• Risk Management. Risk professionals assess the broader impact of insider threats on business operations. They ensure that risk mitigation strategies are implemented effectively.
• Forensics Team. Forensic investigators are needed to gather and analyze digital evidence, such as email records, system logs, and file access history. This is critical for building cases against malicious insiders.

Each team member should have clearly defined responsibilities to prevent confusion and overlap, ensuring that when an incident occurs, the response is swift and coordinated.

Establish Communication Protocols

Develop a well-documented communication protocol that outlines how information will be shared across departments and within the ITRT.

These protocols should include:

• Escalation Procedures. When a threat is detected, there should be clear guidelines for escalating the issue from the technical detection team to senior management or legal teams.
• Internal Reporting Mechanisms. Create a secure and confidential internal reporting system where employees can report suspicious activities or behaviors. This reporting mechanism should feed directly into the ITRT for immediate review and action.
  • Also, specify when and how each party will be informed about an insider threat incident, ensuring that the right individuals are notified within a defined time frame to minimize damage.

In some cases, insider threats may involve external partners, contractors, or law enforcement. The ITRT should have a workflow on how to communicate with outside parties in a secure and compliant manner when necessary.

💡 Teramind Tip

To streamline communication and ensure timely remediation, appoint a Single Point of Contact (SPOC) within the team.

This individual will act as the main coordinator during an incident, ensuring that information flows smoothly between team members and that actions are prioritized correctly.

The SPOC will also be responsible for reporting to senior management, keeping them informed of developments without overwhelming them with unnecessary details.

4. Create a Detailed Insider Threat Incident Response Plan

A well-structured insider threat incident response plan outlines the precise steps your organization should take when an insider threat is detected.

This detailed plan serves as the roadmap that guides your organization through the phases of detection, investigation, containment, and recovery.

Here’s how to create a robust insider risk plan:

Define Incident Response Phases

• Detection and Identification. This phase involves monitoring systems and analyzing employee behavior to detect unusual activity.
  • For example, an employee accessing large amounts of data after hours will trigger alerts for further investigation.
• Investigation and Assessment. Once a potential insider threat is identified, the next step is launching a thorough investigation to determine the scope and depth of the incident.
  • This includes reviewing access logs, communication records, and file histories while conducting interviews with relevant personnel to understand the motivation behind the behavior.
• Containment. After identifying the scope of the threat, it’s essential to contain the incident immediately to prevent further damage.
  • This may involve limiting the insider’s access to systems or data, isolating compromised systems, or revoking credentials. The faster you contain the threat, the less impact it will have on your business.
• Mitigation and Eradication. Once the threat is contained, mitigation involves addressing the vulnerabilities that led to the incident.
  • This could include patching software, updating security policies, or reinforcing access controls. The aim here is to eliminate the insider’s ability to inflict further harm.
• Recovery. This phase focuses on restoring systems to normal operations, repairing damage, and validating the integrity of the organization’s security posture.
• Post-Incident Review. Finally, a thorough review of the incident should be conducted to identify weaknesses in your response plan. This phase is critical for improving future threat responses and closing any gaps in your security architecture.

Develop Comprehensive Playbooks for Specific Insider Threat Scenarios

Here’s what this looks like in practice:

• Data Theft or Exfiltration. This playbook would focus on containing and mitigating the loss of sensitive data, including halting data exfiltration, monitoring data transfers, and recovering stolen data if possible.
• Unauthorized Access. If an insider gains unauthorized access to restricted systems or files, this playbook would outline how to block access, review logs for unusual activity, and reset credentials.
• Unauthorized Searches. For example, if an employee conducts unauthorized searches or unpermitted investigations into internal company data, the playbook should address how to detect, investigate, and respond to this type of internal security risk.
• Sabotage or System Manipulation. In cases where insiders deliberately sabotage systems or data, the playbook would focus on isolating affected systems, reversing any malicious changes, and ensuring that operations can continue without further disruption.

Minor incidents (e.g., an accidental breach) could be handled by the IT security team, while severe cases (e.g., malicious insider activity) may require immediate escalation to senior leadership or even legal authorities.

💡 Teramind Tip

Use KPIs like detection and containment time to evaluate your security program’s performance. For example, you could track:

• How quickly your team detects insider threats.
• How long it takes to contain the issue.
• The recovery time to full operations.

Analyzing these metrics over time will help you refine your response plan and ensure your team is always ready to act quickly and effectively.

5. Implement Insider Threat Awareness Training

The next step is to train your staff. A well-rounded training program equips employees with the tools to recognize, report, and respond to suspicious activities.

Ideally, any training you implement should fit into the requirements of The National Industrial Security Program Operating Manual (NISPOM).

Here’s how to do it:

Develop Role-Specific Training Modules

• Tailor the training to different departments (e.g., IT, HR, finance), focusing on insider threat indicators relevant to their roles.
  • For example: your IT staff learn how to spot unusual login patterns, while HR focuses on behavioral red flags like sudden employee disengagement.

Educate on Common Indicators

Here are the most common examples:

• Unusual or Unauthorized Data Access. Employees accessing systems or data outside their job scope, especially late at night or during off-hours.
• Data Exfiltration Attempts. Copying large amounts of data to external drives or cloud storage.
• Behavioral Changes. Noticeable changes in employee behavior, such as disengagement, hostility, or frequent violations of company policies.
• Unexplained Financial Gain. Employees suddenly acquiring large sums of money, indicating possible involvement in selling confidential data.

Teach your staff to distinguish between unintentional insider threats, such as accidental data leaks, and intentional threats, which involve deliberate, harmful activities like sabotage, fraud, or espionage by individuals with authorized access.

Provide Hands-On Training and Simulations

• Regular phishing exercises can help employees learn to identify and avoid suspicious emails, which are often used to compromise accounts and initiate insider threats.
• Provide role-playing scenarios where employees practice how to react if they witness suspicious behavior.
• Conduct team-based simulations where employees act as part of the response team in insider threat scenarios.

💡 Teramind Tip

Use gamification techniques to make the training more engaging. Offer practical scenarios for employees to test their knowledge of insider threats.

6. Set Up Confidential Reporting

This allows employees to safely and anonymously report suspicious activities or behaviors without fear of retaliation or exposure.

Insider threats are often subtle, and without a proper reporting system, critical warning signs may go unnoticed.

Here’s how to set up confidential reporting:

Establish Clear Reporting Channels

• Anonymous Hotlines. Have a dedicated phone line that employees can call to report incidents without disclosing their identity. These hotlines should be operated by a neutral party to ensure anonymity.
• Online Reporting Platforms. Set up secure, web-based forms or platforms that allow employees to submit detailed reports of suspicious activities. These platforms can be integrated into the company’s intranet, with built-in encryption to protect confidentiality.
• Dedicated Email Accounts. Create an internal email account specifically for insider threat reporting. This email should be monitored only by the Insider Threat Response Team (ITRT) to ensure sensitive information is handled discreetly.
• Physical Suggestion Boxes. In industries or locations where digital systems may not be easily accessible, secure suggestion boxes can be placed in common areas. Employees can submit written reports while remaining anonymous.

Guarantee Confidentiality and Protection

• Anonymous Submissions. Implement systems that don’t require employees to provide any identifying information.
  • Web-based platforms should remove IP addresses, and phone systems should avoid recording numbers or locations.
• Third-Party Vendors. Some companies opt to work with third-party vendors who specialize in confidential reporting solutions. These vendors can offer secure, anonymous tools for gathering employee reports without risking exposure within the organization.
• Strict Information Access Controls. Limit access to confidential reports to a small group of trusted individuals, such as the ITRT or a designated security officer. Ensure that no one outside this group can view or access these reports.
• Data Encryption. All reports, whether online or through email, should be encrypted and stored securely to prevent unauthorized access.

💡 Teramind Tip

Share anonymized success stories of how the reporting system helped prevent security incidents. This will foster trust in the process.

7. Implement the Correct Insider Threat Tools

A dedicated suite of tools tailored to address insider risks can enhance your organization’s ability to track user behavior, identify anomalies, and act quickly when a threat is detected.

Here are some essential insider threat tools:

User and Entity Behavior Analytics (UEBA)

UEBA leverages machine learning and data analytics to monitor and analyze the behavior of users (employees, contractors) and entities (devices, systems). 

By comparing current behavior against established baselines, UEBA can detect anomalies that may indicate insider threats. 

Here’s why UEBA is essential: 

• Behavioral Anomaly Detection. UEBA detects deviations from normal user behavior, such as unusual login times, accessing data outside regular business hours, or excessive downloading of files. 
• Contextual Understanding. It analyzes context, such as which data or systems are being accessed, by whom, and under what conditions. This allows for more accurate identification of potential threats, reducing false positives. 

Data Loss Prevention (DLP)

DLP tools monitor data usage, control access, and prevent unauthorized disclosure or sharing of sensitive information. 

Key capabilities of DLP tools include:

• Content Inspection. DLP tools inspect data in motion, at rest, and in use. They ensure that sensitive information, such as intellectual property or customer data, is not shared or transferred without authorization.
• Policy Enforcement. Organizations can define security policies that control what data users can access or transfer. DLP tools enforce these policies by blocking or flagging unauthorized actions. 
• Alerting and Reporting. If an employee attempts to send restricted data to an external email address or download a large number of sensitive files, DLP tools can immediately alert security teams.

Privileged Access Management (PAM)

PAM solutions are vital for controlling and monitoring access to critical systems and data by users with elevated permissions.

Key PAM features include:

• Just-in-Time Access. PAM solutions can enforce temporary, just-in-time access to critical systems. This ensures that users only have the access they need for a specific period. 
• Session Monitoring and Recording. PAM tools can monitor and record privileged user sessions, providing a detailed audit trail of actions taken during those sessions. 
• Credential Vaulting. PAM systems store privileged credentials securely and control their use, ensuring that access is tightly managed and cannot be misused. 

Security Information and Event Management (SIEM)

SIEM tools aggregate security logs and events from across the organization, providing a centralized view of security activities.

Benefits of SIEM include:

• Log Aggregation. SIEM tools collect logs from firewalls, endpoint security systems, applications, and more, creating a comprehensive record of user activity. 
• Correlated Alerts. SIEM systems use correlation rules to detect patterns of activity that may indicate an insider threat.
  • For example, repeated login attempts followed by access to sensitive files could trigger an alert.
• Incident Response Integration. When integrated with UEBA or DLP systems, SIEM tools can provide the context needed to respond to incidents swiftly and accurately.

Endpoint Detection and Response (EDR)

EDR tools monitor activity on endpoints (such as laptops, desktops, and mobile devices) to detect suspicious behavior that could indicate insider threats. 

They are designed to detect malicious activity and facilitate a swift response to incidents at the device level. 

Key benefits include:

• Real-Time Monitoring. EDR provides continuous monitoring of endpoints, identifying suspicious activities like abnormal file access or privilege escalation attempts. 
• Threat Containment. When a threat is detected, EDR tools can isolate affected devices to prevent the spread of malicious activities. 
• Incident Investigation. EDR tools store detailed logs and data on endpoint activities, making it easier to investigate insider incidents and determine the root cause. 

User Activity Monitoring (UAM)

UAM tools provide deep insights into user behavior, helping to detect both malicious and unintentional insider threats. 

These tools monitor a wide range of user activities, including;

• When files are accessed, modified, or transferred, giving detailed records of user interactions with sensitive data, 
• Which applications users are accessing and whether they’re using them in compliance with company policies.
• Capturing keystrokes or taking periodic screenshots to provide granular insights into user behavior.

They can also be configured to trigger alerts based on predefined rules or thresholds. 

Insider Threat Management (ITM) Platforms

A comprehensive ITM platform is a powerful tool that integrates many of the capabilities mentioned above — UEBA, DLP, SIEM, and more — into a single solution. 

ITM platforms are specifically designed to identify, mitigate, and respond to insider threats by providing an all-in-one solution. 

The core features of ITM platforms include:

• Behavioral Analytics. ITM platforms continuously monitor user behavior and automatically flag unusual patterns that deviate from established norms. 
• Comprehensive Reporting. ITM platforms offer detailed reports and dashboards, giving your team insights into insider threat trends and risks across the organization.
• Real-Time Alerts and Incident Response. With automated alerts and built-in response mechanisms, ITM platforms enable organizations to respond to threats before they cause significant damage. 

An ITM platform is ideal for organizations looking for a centralized tool to manage and respond to insider threats across multiple departments and systems.

Identity and Access Management (IAM)

IAM solutions control and manage user identities and their access to systems, applications, and data. They help to prevent insider threats by ensuring that users only have access to the information they need to perform their jobs.

Key features include:

• Role-Based Access Control (RBAC). IAM systems assign permissions based on roles within the organization, ensuring that users only have access to the systems and data required for their job functions. 
• Access Auditing. IAM solutions track user access and provide audit logs, allowing security teams to identify unauthorized access attempts or privilege escalations. 
• Multi-Factor Authentication (MFA). Adding an extra layer of security, MFA ensures that even if an insider’s credentials are compromised, additional verification is required to access sensitive systems. 

💡 Teramind Tip

Conduct a thorough integration review to assess how your UEBA, DLP, SIEM, PAM, and IAM systems interact.

Ensure that data flows seamlessly between tools and that alerts from one system can trigger responses in another.

This integrated approach provides a more comprehensive security posture and ensures that no insider threat goes undetected due to gaps in coverage.

8. Conduct Regular Program Reviews

As your organization evolves, so do the threats it faces. Regular reviews ensure that your insider threat program stays relevant, effective, and responsive to new challenges. 

These reviews are essential for identifying gaps, refining processes, and adapting to emerging risks. 

Assess the Effectiveness of Detection Tools

• Are the tools detecting threats effectively?
  • Review the number of insider threat incidents that were detected versus those that were missed. 
  • Evaluate the accuracy of alerts and reduce false positives by adjusting detection parameters if needed.
• Are there any gaps in coverage?
  • Identify areas where your tools may not be performing adequately, such as monitoring remote workers, third-party vendors, or mobile devices. 

Conduct quarterly or bi-annual reviews of your insider threat program to assess its effectiveness and make necessary adjustments.

Review Incident Response Performance

• Measure how quickly the team identifies, investigates, and responds to insider threats. If response times are too slow, investigate the bottlenecks and make adjustments.
• Evaluate how effectively the team is containing and mitigating insider threats, preventing further damage or data loss.
• Conduct thorough post-incident reviews after each threat. Identify the lessons learned and apply them to future incidents. 

Update the Insider Threat Risk Assessment

When updating the risk assessment: 

• Ensure that any new assets introduced since the last review, such as intellectual property, systems, or sensitive data, are added to the assessment.
• Review changes in personnel, access levels, and roles. Employees who have changed departments or taken on new responsibilities may now have access to classified information that wasn’t previously a concern.
• Revisit your legal and compliance procedures for handling insider threat incidents. 
• Stay updated on any changes to laws or industry standards, such as HIPAA, GDPR, CCPA, or industry-specific regulations. 

Test and Update Incident Response Playbooks

• Run table-top exercises or real-time drills that simulate insider threat incidents. These scenarios help the response team practice their roles and identify any gaps in the playbook.
• Evaluate whether the steps outlined in your playbooks are still relevant and effective.
  • For example, if your organization has adopted new technologies like cloud storage or collaboration tools, update the playbooks to reflect the specific procedures required for these systems. 

💡 Teramind Tip

Regular reviews of your insider threat program are most effective when leadership is actively involved.

Schedule periodic briefings with senior executives to review the program’s performance, highlight any significant findings, and secure support for any required changes.

Involving leadership ensures that your program remains a top priority and receives the necessary resources and attention to evolve with the organization’s needs. 

Teramind: The Smart Way to Secure Your Organization from Within

When it comes to insider risks, traditional security measures often fall short.

Most conventional systems are designed to protect against external attacks, such as malware, phishing, or hacking attempts. While these are important, they neglect a critical vulnerability — insider threats. Employees, contractors, or anyone with internal access can unintentionally or maliciously cause harm. 

Additionally, many security systems fail to track privileged user activity or provide granular control over sensitive data access, making it difficult to prevent internal breaches.

But that’s not the case with Teramind. 

Unlike basic monitoring systems, Teramind offers intelligent insights into user behavior that help you spot unusual activity, identify risks, and secure sensitive information from unauthorized access. 

From customizable policies to granular data tracking, Teramind makes it easy to implement a full-scale insider threat mitigation program that fits seamlessly into your existing security framework.

Why Do Organizations Choose Teramind?

• User Activity Monitoring. Teramind provides detailed tracking of user behavior across all devices and applications. This includes keystrokes, file movements, email activity, website visits, and app usage, offering a 360-degree view of what’s happening on your network.
  • With this level of visibility, you can detect unusual patterns that signal potential insider threats.
• Real-Time Alerts and Automated Responses. Teramind’s real-time monitoring triggers immediate alerts for suspicious activity, such as unauthorized access to sensitive data, abnormal login times, or attempts to bypass security protocols.
  • You can also configure automated responses, such as locking out users or revoking access, to prevent breaches before they escalate. 
• Behavioral Analytics and Anomaly Detection. Teramind uses advanced behavioral analytics to understand normal user behavior and detect deviations.
  • For example, if an employee begins accessing sensitive files outside of their usual patterns or attempts to transfer data to external devices, Teramind’s anomaly detection system will alert you to these potential threats. 
• Insider Threat Detection and Prevention. Whether it’s data exfiltration, intellectual property theft, or unauthorized data access, Teramind identifies these risks in real-time, allowing you to act immediately and mitigate the potential damage.
• Detailed Audit Logs and Reporting. Every user action is logged, providing comprehensive audit trails for compliance and investigations. These detailed logs help organizations understand the full scope of any potential breach, making it easier to respond and remediate incidents quickly.

Discover how Teramind can help you secure your organization — View a live demo now!

FAQs

How do I run an insider threat program?

To run an insider threat program, follow these steps:

• Assess Risks. Identify potential threats and sensitive areas that need protection.
• Create Policies. Develop clear security rules for handling data and monitoring employee activity. 
• Use Tools. Implement software (e.g., UEBA, DLP, SIEM, etc.) to monitor user behavior and detect suspicious actions. 
• Train Employees. Educate staff on security best practices and the importance of insider threat prevention.
• Monitor Continuously. Keep an eye on network activity to catch any unusual behavior early. 
• Respond Quickly. Set up an incident response plan to deal with threats if they occur.

What is an insider threat program?

An insider threat program is a set of policies, tools, and practices designed to identify, prevent, and respond to security risks caused by people within an organization, such as employees, contractors, or partners.

It helps detect unusual behavior, protect confidential information, and reduce the chances of data breaches or other harmful actions.

What are the benefits of an insider threat program for your organization?

An insider threat program benefits your organization by:

• Preventing Data Breaches. It helps detect and stop threats from within before they cause damage. 
• Protecting Sensitive Data. It safeguards valuable information from misuse or leaks. 
• Ensuring Compliance. It helps meet legal and industry regulations for data security. 
• Reducing Financial Loss. It minimizes the risk of costly incidents like fraud or theft. 
• Building Trust. It creates a safer workplace environment, boosting confidence among employees, clients, and partners. 

What makes a successful insider threat program?

A successful insider threat program combines strong security policies, continuous monitoring, and employee awareness. It focuses on identifying unusual behavior, securing sensitive data, and responding quickly to potential risks.

Key elements include clear rules, regular training, and using the right tools to track activity without invading privacy.

What functions do insider threat programs fulfill?

Insider threat programs fulfill several key functions:

• Monitoring. Tracking user activity to detect suspicious behavior. 
• Risk Identification. Identifying potential threats from within the organization. 
• Prevention. Implementing security measures to stop insider threats before they cause harm. 
• Response. Providing steps to quickly respond to insider incidents. 
• Training. Educating employees on security best practices to reduce risks.

What are the most common types of insider threat?

The most common types of insider threats are:

• Malicious insiders. Employees who intentionally steal or damage data for personal gain or revenge. 
• Negligent insiders. Employees who accidentally expose sensitive information due to careless actions. 
• Compromised insiders. Employees whose accounts are hacked or manipulated by external attackers to access company data.