When Trust Turns Toxic: Insider Threats Are Crippling Small Businesses

Today, we’ll examine the growing consequences of failing to proactively address insider threats, how they emerge, why they’re so damaging, and the practical steps you can take to prevent them.

I am dropping a link to this Defense Against Insider Threats technical case study from CrowdStrike right here in the beginning because it is a must read for just about anyone and everyone, regardless of your knowledge and experience.  Whether you continue to read on any further or not really doesn't matter to me as long as you've at least spent 5 minutes reviewing this study. Consider it the TLDR for what's to come.

Insider threats are cybersecurity risks that arise from individuals within an organization who have legitimate access to its systems, networks, or data. These individuals, such as employees, contractors, vendors or trusted partners, may intentionally or inadvertently misuse their access, potentially compromising security, privacy, or operational integrity. In 2025, small businesses are facing the same level of cyber risk as global enterprises, but with fewer bigD Defenses due to limited knowledge and budget for technical staff that are prepared to address these threats.

 

In 2024, a staggering 94% of small and midsize businesses (SMBs) experienced a cyberattack, according to NinjaOne. Even more alarming, 78% of business owners fear that a single data breach could permanently shut down their operations. I cannot personally fathom how that number isn't above 90%, but I digress..

The leading causes of these attacks? Business Email Compromise (BEC) and phishing scams, responsible for roughly 73% of incidents. This highlights the point that human error remains the weakest link in cybersecurity defenses.

 

Detection Is Failing And It’s Costing Us Millions

According to the latest out of the Ponemon Institute, an independent research firm that conducts studies on data protection, privacy, and information security policies, insider threats on average take 81 days to resolve and cost organizations $17.4M annually through Quarter Three Q3 of 2025. While this number represents an all-time high, for the first time in recorded history the average time to resolution is down from 86 days to just.. 81 days. Let's just call this what it is, a monumental failure to detect these threats in an appropriate time-frame.  

 

Equally alarming, the 2025 Insider Risk Report from Cybersecurity Insiders reveals that 93% of security leaders view insider threats as just as difficult, or even more difficult, to detect than external attacks. The reason? Most organizations lack a strategic framework for monitoring behavioral signals that could flag risky users before damage is done. Add to that limited monitoring tools and constrained budgets, and you’ve got a recipe for serious exposure.

 

Ready for the Pineapple topping on this parfait? CrowdStrike, pioneers in the concept of adversary-focused cybersecurity, recently released their 2025 Global Threat Report that shows 40% of FAMOUS CHOLLIMA incidents detected involved insider tactics. You might be asking yourself "Who the heck is that?". They're the bad guys.

FAMOUS CHOLLIMA—one of the most relentless adversaries—has mastered the art of cross-domain attacks, moving seamlessly across endpoints, identity, and cloud to evade detection. Their tactics have been used to infiltrate financial services and beyond, exploiting remote access and blending into normal operations. -- CrowdStrike

 

Why Insider Threats Hit Small Businesses Hard

The graphic above highlights the most common categories of cybersecurity vulnerabilities. Now, let’s dive into six key reasons why insider threats tend to hit small businesses especially hard.

1. Limited Security Resources

• Teams may not have dedicated tools like SIEM (Security Information and Event Management) or ITDR (Identity Threat Detection and Response) to flag suspicious behavior early.
  
  
• Small businesses typically operate with lean IT teams or outsource cybersecurity, which can lead to gaps in monitoring and threat detection

2. Lower Awareness and Training

• Employees at small businesses often receive less frequent or less comprehensive cybersecurity training, increasing the risk of accidental data leaks or poor password hygiene.
  
  
• Without a strong security culture, negligent behavior, like clicking phishing links or mishandling sensitive data can go unnoticed until damage is done.

3. Broad Access with Few Controls

• Lack of granular access controls makes it easier for insiders—malicious or careless—to misuse their privileges.
  
  
• Staff in small businesses often wear multiple hats, leading to broader access to systems and data than their roles might require.

4. High Impact, Low Resilience

• Unlike large enterprises, small businesses may struggle to recover from breaches due to limited insurance coverage, legal support, or crisis management resources.
  
  
• A single insider incident can cause outsized damage to a small business, from financial loss to reputational harm.

5. Trust-Based Culture

• This culture can also make it harder to suspect or investigate internal threats, especially when the insider is a long-time employee or partner.
  
  
• Many small businesses operate on tight-knit teams and informal trust, which can delay the implementation of stricter security protocols.

6. Reactive vs. Proactive 

• Reactive strategies focus on damage control, responding only after a breach or incident has occurred.
  
  
• Proactive SMBs are more likely to spot suspicious behavior early, isolate threats, and avoid costly downtime.

Bottom line: For SMBs, a reactive approach is a gamble.

 

What You Can Do Without Breaking the Bank

• Role-Based Access Control - Limit employee access to only the tools and data they need by assigning roles like “Sales” or “Finance” within platforms such as Microsoft 365 or Google Workspace.

Example: In Microsoft 365, assign SharePoint permissions based on department so marketing can’t access HR files.

• Audit trails with Huntress EDR - Use endpoint detection tools like Huntress to automatically log and review user activity, helping you spot suspicious behavior or unauthorized changes. 

Example: Huntress can alert you if someone installs software outside of company policy or accesses sensitive files after hours.

• Offboarding protocols - Create a checklist to remove access when employees leave, including disabling accounts in Microsoft or Google and reclaiming company devices.

Example: Use Google Admin Console to suspend a departing employee’s Gmail and revoke access to shared drives.

• Security awareness training - Regularly educate your team on cybersecurity basics, like spotting phishing emails and using built-in training tools or third-party platforms.

Example: Microsoft Defender for Office 365 includes simulated phishing tests and training modules for staff.

• Behavioral analytics from Microsoft & Google - Enable built-in analytics to monitor unusual user behavior, such as accessing files they don’t normally use or logging in from unfamiliar locations.

Example: Microsoft Entra ID and Google Workspace Alert Center can flag risky sign-ins or data downloads for review.

 

Conclusion

Insider threats are personal, costly, and preventable. With the right tools and mindset, small businesses can turn trust into their strongest defense.

Need help assessing your insider risk posture? Let’s talk. I offer tailored cybersecurity consulting for small businesses, because protecting your data starts with protecting your people.

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