The Risks of Inadequate Offboarding
When an employee leaves a company, whether voluntarily or involuntarily, it is crucial to revoke their access to company applications, data, and systems. Failure to do so can lead to serious security breaches, as highlighted by the case of an ex-employee of Microsoft’s Nuance Communications. This former worker retained access to sensitive Geisinger healthcare patient data, leading to a breach affecting over 1 million individuals. This incident underscores the risks businesses face when they do not have a robust offboarding strategy.
In today’s digital workplace, employees have access to a variety of systems, including cloud-based applications, internal databases, customer relationship management (CRM) software, and proprietary platforms. If even one of these access points is overlooked during offboarding, a company can be exposed to data theft, reputational damage, and regulatory penalties. Many organizations underestimate the complexity of de-provisioning access across multiple systems, leaving gaps that former employees can exploit, either maliciously or unintentionally.
Common Challenges in Employee Offboarding
- Delayed or Incomplete Access Revocation
In many cases, companies fail to immediately revoke all access privileges when an employee departs. Employees may have multiple accounts across SaaS applications, internal databases, and third-party client systems. If a single access point is overlooked, it can become an entryway for unauthorized access.
According to the 2023 Cost of Insider Risks Global Report by the Ponemon Institute, the total average cost of insider threat incidents increased by nearly 95% between 2018 and 2023. The report also indicates that it takes an average of 86 days to detect and contain an insider threat incident. Such delays expose businesses to risks, including intellectual property theft, compliance violations, and even sabotage.
- Shadow IT and Untracked Applications
Employees often use applications and services not officially sanctioned by IT departments, making it difficult to track and revoke access comprehensively. Shadow IT refers to software and hardware used within an organization without explicit IT approval, such as personal email accounts for work correspondence or unauthorized file-sharing platforms. If employees leave without disclosing these tools, IT departments may have no way to secure or disable access, increasing the likelihood of data breaches.
- Lack of Centralized Access Control
Without a single sign-on (SSO) or centralized access management system, manually revoking access across multiple platforms becomes cumbersome and prone to human error. Many organizations still rely on fragmented systems for identity and access management, requiring IT teams to disable accounts individually. This process is not only time-consuming but also susceptible to oversight.
- Insider Threats
A disgruntled former employee with knowledge of company systems can pose a significant risk, particularly if they retain login credentials or access to sensitive documents. The 2024 Verizon Data Breach Investigation Report (DBIR) revealed that almost half of the breaches (49%) in EMEA are initiated internally, suggesting high incidences of privilege misuse and other human errors. Globally, employee betrayal poses a significant threat because employees steal data for personal benefit, sometimes colluding with external actors. Insider threats can manifest in various ways, from intellectual property theft to sabotage, making it essential to revoke all privileges swiftly.
- Third-Party Vendor Risks
Former employees of vendors with access to client systems can also pose a security risk if their access is not promptly revoked. Many businesses outsource critical functions to third-party providers, such as cloud storage, customer support, and IT services. If these vendors do not have stringent offboarding protocols, ex-employees could still access company data long after their departure, putting sensitive information at risk.
How an Enterprise DRM Solution Can Secure Company Data Post-Termination
Organizations need a proactive approach that ensures persistent protection of sensitive data, regardless of where it resides, to prevent security incidents related to former employees. An Enterprise DRM (EDRM) solution provides robust protection by implementing zero-trust document security, persistent file protection, and centralized access control.
- Persistent File Protection with Encryption
EDRM ensures that sensitive files remain encrypted and accessible only to authorized users, even after an employee has left. Unlike traditional security models that rely on perimeter defenses, EDRM protects the data itself, ensuring continuous security. Even if a former employee retains a copy of a file, they will be unable to access its contents without proper authorization.
- Automated Access Revocation
Administrators can revoke access to sensitive documents in real-time. If a former employee attempts to open a file, they will be denied access immediately, eliminating the risk of unauthorized use. Automated revocation prevents oversight-related security gaps, ensuring that access is disabled the moment an employee’s status changes in the system.
- Granular Access Controls
EDRM enables companies to set dynamic access controls, ensuring that users can only perform specific actions (e.g., view, edit, or print). This minimizes the risk of data exfiltration, even if an employee retains access for a brief period post-termination. For instance, an employee may be allowed to view a document but not print it, ensuring sensitive information stays within the organization’s control.
- Visibility and Tracking
With an embedded file ID, organizations can track document activity, knowing who accessed, modified, or attempted to share sensitive files with external users. This ensures accountability and helps in forensic investigations if a breach occurs. By implementing robust auditing and reporting features, EDRM provides real-time insights into document interactions, enabling organizations to respond swiftly to suspicious activity.
- Secure Collaboration and Vendor Management
For businesses working with third-party vendors, EDRM ensures that access to sensitive data is continuously monitored. Vendor contracts can include requirements for using encryption and access control, preventing unauthorized access by former vendor employees. This level of control enhances security in supply chain relationships, reducing the risk of vendor-related data breaches.
Best Practices for Effective Employee Offboarding
Beyond leveraging an Enterprise DRM solution, organizations should adopt a comprehensive offboarding strategy to mitigate risks. Here are some best practices:
- Implement a Centralized Identity and Access Management (IAM) System: Use an IAM solution to streamline access control across all company systems.
- Enforce Role-Based Access Controls (RBAC): Assign permissions based on job roles to ensure employees only have access to necessary resources.
- Conduct Regular Access Audits: Periodically review user accounts and permissions to identify and remove outdated or unnecessary access.
- Use Multi-Factor Authentication (MFA): Require multiple forms of verification to enhance security and prevent unauthorized logins.
- Educate Employees on Offboarding Policies: Ensure employees understand the importance of data security during transitions, including returning company-issued devices and accounts.
Fasoo Enterprise DRM
Fasoo Enterprise DRM (FED) is a zero-trust-based document security solution that provides persistent security for sensitive documents – at rest, in transit, and in use – on any device at any time. By encrypting files and applying granular access controls, it prevents unauthorized editing, printing, and sharing, ensuring only authorized users have access to sensitive content both inside and outside the organizations.
FED extends protection beyond encryption with screen security (FSS), print security (FSP), and mobile security (FED-M), safeguarding sensitive data on screens, printouts, and mobile devices.
FED also provides full audit trails to help organizations adhere to global data protection regulations such as GDPR, HIPAA, CCPA, and PCI DSS. The solution also offers real time monitoring to mitigate insider threats and prevent data breaches.
Conclusion
As the Nuance ex-employee case illustrates, failing to properly revoke access after termination can lead to serious security breaches. Companies must adopt a zero-trust approach to data security, ensuring that access is controlled, monitored, and revoked instantly when needed. Fasoo Enterprise DRM provides the necessary tools to prevent unauthorized access and insider threats, making it an essential part of any company’s security strategy.
By implementing persistent encryption, automated access controls, and comprehensive tracking, businesses can protect sensitive data and mitigate the risks associated with employee offboarding. When combined with best practices such as IAM, RBAC, and regular audits, organizations can establish a resilient security posture that safeguards critical business information from unauthorized access and breaches.
