Chief Information Security Officers (CISOs) and leaders in security are stepping up their budgets to tackle the growing threat of insider risks. A recent study, the 2025 Cost of Insider Risks Global Report, by DTEX Systems and the Ponemon Institute, sheds light on this trend.
The survey, involving nearly 350 organizations globally, reveals that the average annual cost of insider threats soared to $17.4 million last year. In response, the spending on managing these risks jumped from 8.2% of total cyber budgets in 2023 to 16.5% in 2024. Notably, organizations are seeing results: for the first time in six years, the average time to contain an incident decreased from 86 days to 81 days.
Awareness is clearly rising; 81% of respondents either have or plan to implement an insider risk management program. Of those already on board, 65% credit their program as the only strategy that preempted a data breach by offering early warning signs. Furthermore, 61% noted that these strategies helped protect their reputation during breaches, and 59% reported experiencing lower financial losses.
DTEX CEO Marshall Heilman remarked on the pressing need for insider risk management, particularly with rising foreign interference and a shifting political landscape. He emphasizes that incidents driven by insider actions can lead to significant financial and reputational damage. Organizations investing in these programs are managing to contain incidents quickly or even prevent them altogether.
The study also highlights the technologies being employed to combat insider threats. Data Loss Prevention (DLP) tools, User and Entity Behavior Analytics (UEBA), and User Activity Monitoring are the most common solutions, used by 56%, 51%, and 49% of organizations respectively. In addition, many are investing in Endpoint Detection and Response (EDR), Privileged Access Management (PAM), and Security Information and Event Management (SIEM) systems. Buyers often choose these technologies for their cost savings, simplicity, and quicker detection times.
Interestingly, 54% of organizations are using some form of artificial intelligence (AI) to combat insider risks. Among this group, 51% believe that AI and machine learning are crucial in this battle, particularly for reducing investigation times and improving behavioral insights.
In the United States, there’s growing concern about an uptick in insider threats, especially with recent mass layoffs impacting federal agencies, attributed to Elon Musk’s management decisions. According to a Mimecast report cited by CSO Magazine, typically, around 80% of departing employees take sensitive data with them. Given the turmoil surrounding these layoffs, that number could climb even higher.