Detecting Insider Threats Using Audit Trails

Seemingly, every day there is another news story about a company being hacked and money or sensitive data being stolen. Companies have now greatly increased their network security budgets, implemented multi-layered intrusion detection systems and are now focused on keeping hackers out. Although the focus is often on external threats, in many cases one of the greatest risks is being ignored: insider threats. Insider threats have not gone away simply because there is so much attention being paid to external ones. Small and medium-sized businesses are particularly susceptible to insider threats because their smaller size can preclude proper separation of duties, effective internal controls, and other security features that larger organizations routinely implement.

One efficient way to detect insider threats involving embezzlement schemes is to review accounting system audit trails. These often-overlooked sources of information are built into most accounting systems and can be invaluable in identifying fraud.