Cybersecurity breaches are often associated with faceless hackers in hoodies, launching attacks from distant countries. But what if the real danger is sitting in the next cubicle, attending the same company meetings, or even holding the keys to the IT kingdom?
Insider threats are among the most damaging security incidents because they come from within—people with legitimate access to sensitive systems and data. Whether driven by greed, revenge, carelessness, or coercion, these individuals can cause catastrophic damage, often before anyone realizes what’s happening.
Let’s take a deep dive into some real-world insider threat cases that prove just how devastating an employee can be when they turn against their own organization.
The Edward Snowden Leaks: A Government’s Worst Nightmare
Perhaps the most infamous insider threat case in history, Edward Snowden was a contractor for the National Security Agency (NSA) who leaked classified documents exposing global surveillance programs run by the U.S. government.
What happened?
- Snowden had legitimate access to highly sensitive data and secretly copied thousands of classified documents.
- He used his system administrator privileges to bypass security controls and access information beyond his clearance level.
- After collecting the data, he fled to Hong Kong and leaked the files to journalists, igniting an international controversy.
The damage:
- The leaks exposed intelligence operations worldwide, causing diplomatic fallout and weakening national security efforts.
- It demonstrated how even a single individual with the right access could shake the foundation of a government’s most sensitive operations.
Lesson learned:
- Excessive access privileges should be tightly controlled.
- Monitoring employee activities—especially those with high-level access—is critical.
The Tesla Sabotage: An Employee’s Revenge
Elon Musk’s Tesla faced a shocking internal attack in 2018 when a disgruntled employee deliberately sabotaged the company’s operations.
What happened?
- A Tesla engineer, upset over being passed up for a promotion, decided to get revenge.
- He altered source code in Tesla’s manufacturing operating system and leaked confidential data to outsiders.
- His actions were discovered after unusual activity in Tesla’s systems triggered an internal investigation.
The damage:
- The sabotage caused disruptions in Tesla’s production process.
- The stolen data could have been used by competitors or malicious actors to undermine Tesla’s technology.
Lesson learned:
- Insider threats can come from anyone—technical employees with access to source code pose a unique risk.
- Implementing strict access controls and continuous monitoring of system changes is essential.
The Coca-Cola Trade Secret Heist
In 2006, three Coca-Cola employees attempted to sell the company’s highly confidential product information—including a sample of a new beverage—to rival Pepsi.
What happened?
- A Coca-Cola secretary stole trade secrets and tried to sell them to Pepsi for $1.5 million.
- Instead of taking the bait, Pepsi reported the scheme to Coca-Cola and the FBI.
- The employees were caught in an FBI sting operation and sentenced to prison.
The damage:
- Had Pepsi been unethical, Coca-Cola’s proprietary product development could have been compromised.
- The incident exposed major gaps in Coca-Cola’s internal security and employee vetting processes.
Lesson learned:
- Even non-technical employees can pose serious risks—insider threats aren’t just about IT access.
- Companies must foster a culture of ethics and ensure employees are aware of the legal consequences of data theft.
The Waymo vs. Uber Trade Secret Battle
What happens when an employee jumps ship, but takes a little too much with them? In 2017, Google’s self-driving car division, Waymo, accused Uber of stealing its trade secrets, leading to one of the biggest corporate espionage cases in Silicon Valley.
What happened?
- A former Google engineer, Anthony Levandowski, downloaded 14,000 confidential files related to self-driving car technology before resigning.
- He then started his own self-driving truck company, which was later acquired by Uber.
- Waymo sued Uber, alleging that the stolen files gave Uber an unfair advantage in autonomous vehicle development.
The damage:
- Uber settled the lawsuit for $245 million in equity.
- Levandowski was sentenced to 18 months in prison for trade secret theft.
Lesson learned:
- Employees taking proprietary data with them when leaving a company is a massive risk.
- Organizations need robust exit procedures, including monitoring downloads and restricting access well before an employee leaves.


The Morgan Stanley Data Leak: When Security Fails
Morgan Stanley, a financial giant, suffered a major insider threat incident in 2015 when an employee stole and leaked sensitive customer data.
What happened?
- A financial advisor at Morgan Stanley copied information on 350,000 client accounts and uploaded it to a personal server.
- Some of this data was later posted on the internet.
- The employee was eventually caught, but not before the breach damaged the company’s reputation.
The damage:
- Customers’ personal and financial information was exposed, increasing the risk of fraud.
- Morgan Stanley faced regulatory scrutiny and reputational harm.
Lesson learned:
- Financial institutions must have strict data access policies and continuous monitoring to detect unusual activity.
- Sensitive client information should never be accessible in a way that allows easy exfiltration.
Final Thoughts: The Biggest Risk Is Already Inside
These real-world cases prove that insider threats are not just hypothetical scenarios—they happen every day, across industries, and with devastating consequences.
The biggest takeaway? Trust is not a security strategy. Organizations must:
- Limit access: No one should have more access than they absolutely need.
- Monitor aggressively: Watch for unusual behavior, such as large file transfers, unauthorized access attempts, or disgruntled employees behaving differently.
- Secure the exit process: When an employee resigns or is terminated, revoke access immediately and audit recent activity.
- Educate employees: Many insider threats come from negligence rather than malice—ongoing security training can reduce accidental breaches.
At the end of the day, the most dangerous threat to your company might not be a hacker on the other side of the world. It might be the person who just walked into the office.