Insider Threats & Honeypots
A high-profile lawsuit filed in March 2025 between two major HR technology companies highlights a stark reality: even trusted employees can pose serious security risks. One company accuses a payroll compliance manager of acting as a spy for the rival company, allegedly stealing sensitive data like customer lists and sales strategies over the course of several months. The breached company claims this attack was not random, in fact they assert that the insider threat was planted by the competitor’s leadership team, displaying how disgruntled or compromised insiders can exploit their access. This is a critical reminder that your biggest threats may already be on the inside, driven by resentment, financial gain, or malicious intent.
What sets this case apart is the clever use of a “honeypot,” a strategic trap to catch the insider threat in the act. The breached company created a fake Slack channel name and included it in a legal letter sent to the rival company’s executives. Within hours, the insider threat searched for it, giving grounds to establish a connection between the threat and the rival company. Honeypots are decoys designed to lure bad actors into the open without disrupting normal work, acting as a silent alarm for malicious activity. For your organization, this could mean creating dummy files, shares, or accounts that flag unauthorized access. The benefit is clear, spotting malicious activity early can prevent a breach from escalating into a costly fiasco or reputational disaster.
To safeguard your business, we recommend tightening internal controls and regularly reviewing who has access to sensitive data, restricting it to essential personnel. Train your teams to recognize warning signs, like excessive searches or irregular downloads. Combine this with proactive steps like data lost prevention software and honeypots, and you’ve made your infrastructure that much more robust against malicious insiders. This ongoing saga proves that, in today’s competitive landscape, staying vigilant and utilizing smart controls can be the key to protecting your company from threats both without and within.
Neovera SV (formerly 10-D Security) is an independent firm specializing in IT security and compliance for financial institutions. We help clients mitigate risk and comply with GLBA requirements, offering tailored services and expertise to strengthen cybersecurity programs.