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Insider Threats: The Overlooked Risks of Departing Employees and Sensitive Data Theft

Posted on January 22, 2025 by Dissent

Joe Lazzarotti of JacksonLewis has a post on one of my favorite topics:  insider threats.

Insider threats continue to present a significant challenge for organizations of all sizes. One particularly concerning scenario involves employees who leave an organization and impermissibly take or download sensitive company data. These situations can severely impact a business, especially when departing employees abscond with confidential business information or trade secrets. Focusing on how the theft of such information could cripple a business’s operations, competitive advantage, etc. is warranted. It is critical not to overlook, however, other legal and regulatory implications stemming from the theft of certain data, including potential data breach notification obligations.

The Importance of Safeguarding Trade Secrets

Trade secrets generally refer to information that has commercial value because it’s kept secret. Examples include formulas, patterns, programs, devices, methods, and other valuable business data. Such data are often the lifeblood of a company’s competitive edge. These secrets must be safeguarded to retain their value and legal protections under the Uniform Trade Secrets Act (UTSA) which has been adopted by most states. Businesses will need to demonstrate that they took reasonable measures to protect their trade secrets.

Read more at Workplace Privacy, Data Management & Security Report.

 

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  • Justice Department Announces Five Cases as Part of Recently Launched Disruptive Technology Strike Force
Category: Commentaries and AnalysesInsider

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1 thought on “Insider Threats: The Overlooked Risks of Departing Employees and Sensitive Data Theft”

  1. Laura G says:
    January 22, 2025 at 3:06 pm

    Our departing band director took all the children’s medical record forms. The district didn’t care.

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