An Insider is a person who is recognized or accepted as a member of a group or organization who is in a position of power or has access to confidential information. For example, “Insider trading” happens when an individual has confidential information about a company and uses that information for financial gain, giving them an unfair advantage in the market.
Insiders can cause harm to a company in two ways:
- through accidental exposure of confidential information (mistakes) such as when a database is not properly secured but accessible from the Internet.
- through malicious intent either by stealing intellectual property and selling it, by purposefully exposing the company’s sensitive information, by setting logic bombs which can cause harm should the employee ever be fired, or by installing secret backdoors into the company for unauthorized access at a future date.
Source: Merriam-Webster Dictionary