The massive wave of layoffs in 2024 have introduced a cybersecurity threat that many business owners are overlooking: the offboarding of employees. Even prominent companies, which you would expect to have robust cybersecurity measures, often fall short in safeguarding against insider threats. A stark example is from last year when two disgruntled ex-Tesla employees exposed the personal information of over 75,000 individuals, including names, addresses, phone numbers, and Social Security numbers.
This issue is only expected to worsen. According to NerdWallet, as of May 24, 2024, 298 US-based tech companies had laid off 84,600 workers. Major companies like Amazon, Google, and Microsoft, along with numerous startups, are contributing to this trend, resulting in 257,254 jobs cut in the first quarter of 2024 alone.
Regardless of whether your business will need to downsize this year, having an effective offboarding process is crucial. It’s not just an administrative task but a vital security measure. Failing to revoke access for former employees can lead to severe business and legal consequences.
Key Risks of Poor Offboarding
Theft of Intellectual Property
Employees leaving your company can take sensitive data with them, including files, client data, and confidential information stored on personal devices. They might also retain access to cloud-based applications if their permissions were not properly removed.
According to a study by Osterman Research, 69% of businesses experience data loss due to employee turnover, and 87% of departing employees take data with them. This data is often sold to competitors or used by former employees to start competing businesses.
Compliance Violations
Not removing ex-employees from authorized user lists can lead to noncompliance in regulated industries, resulting in hefty fines, penalties, and potential legal consequences.
Data Deletion
Disgruntled employees with retained access might delete crucial emails and files if they feel unfairly treated. Without proper backups, this data could be permanently lost.
Data Breach
This is perhaps the most alarming risk. Upset former employees could cause significant data breaches, leading to costly lawsuits and severe damage to your company’s reputation.
Steps to Properly Offboard Employees
Principle of Least Privilege
Start by granting new employees access only to the necessary files and programs for their roles. Document these permissions meticulously to simplify the offboarding process. One method to consider is creating “privilege groups” based on employee roles or duties. This eliminates employee-specific permission setup and revocation; simply add or remove them from the group.
Leverage Automation
Utilize automation to streamline the revocation of access to multiple software applications simultaneously, minimizing manual errors and saving time.
Continuous Monitoring
Implement software that tracks user activity on your company network. This helps identify suspicious behavior and ensures that former employees do not retain unauthorized access.
These strategies can significantly enhance your offboarding process, making it more secure and efficient. Insider threats are real and potentially devastating. It is essential to be proactive in protecting your organization.
To discover if there are gaps in your offboarding process that could expose you to data theft or breaches, our team offers a free, in-depth risk assessment. Call us at 281-646-1200 or click here to book now.
