Every business today has to think about cyberattacks. Companies of all sizes may find themselves a target, and data breaches can come from anywhere, even from employees. Reliable cybersecurity strategies should account for both insider and outsider threats.

When most people think of cybercrime, they probably think of outsider threats, also called external threats. However, insider threats are just as, if not more, concerning. What’s the difference between the two, and which is worse?

What Are Insider Threats?

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Insider threats are exactly what they sound like: threats that come from inside an organization.

In most cases, insider threats are accidental, like an employee using a weak password, allowing a hacker to compromise their account and access sensitive company data. However, they can also be intentional, like a disgruntled worker exposing company secrets for revenge. These attacks cost $11.45 million on average and have tripled since 2016.

What Are Outsider Threats?

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By contrast, outsider (or external) threats come from outside players. They likely don’t have a personal connection to their targets but rather go after what could get them the most money. These are the most familiar examples of cybercrime.

Outsider threats are rarely random. Most cybercriminals are sophisticated, carefully selecting a target that offers a high chance of success or a big payday.

Financial motivation can be the main factor behind outsider threats, but they can happen for other reasons, too. “Hacktivists” may attack a company to prove a point, and state-sponsored, politically driven cybercrime is becoming a reality as well.

Insider and outsider threats can overlap. External actors often take advantage of insiders’ mistakes, so an insider threat is frequently the first part of an outside attack. Phishing, where cybercriminals trick people into giving away information or installing malicious software, is an example of this.

This overlap between outsider and internal threats is extremely common. Phishing usually makes up a large proportion of data breaches each year, more so than any other attack type.

Which Type of Threat Is Worse and Why?

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Both insider and outsider threats are common and can cause a lot of damage, but which is worse?

In a presentation about human IT threats, Jenny Radcliffe, an experienced social engineer, emphasizes that there’s no point in any digital defenses if insider vulnerabilities go overlooked.

Similarly, 63 percent of organizations say insider threats pose the biggest risk. That’s because insiders already have access to sensitive data, and one slip-up could expose it, regardless of what other protections a business has.

Most data breaches result from employee error, and while external threats are still common, many cybercriminals rely on insiders’ mistakes, like using weak passwords or falling for phishing attempts.

Of course, insider threats may be less concerning for businesses with thorough security training programs or limited employee access. Sophisticated outsider threats pose a bigger risk for those companies. However, in most cases, insider threats are worse.

Businesses Must Stay Safe From All Threats

Organizations today face threats from multiple sources, both inside and outside the company. As a result, staying safe means accounting for internal and external cyber-risks.

While both are cause for concern, insider threats frequently pose the most danger. Knowing this, businesses can take steps to minimize damage and stay safe.