Many prominent tech companies have recently conducted mass layoffs—some as a response to the slowing economy, and others to correct for pandemic hiring sprees.
Whatever the reason, one of the risks that arise when laying off employees is data theft, also known as data leakage and exfiltration. This can cause a company to lose out on business, lose its intellectual property, and suffer reputational damage.
Unfortunately, it’s not uncommon, especially around the time of their departure, whether that departure is voluntarily or via a layoff or firing. A report from Cyberhaven, a software company focusing on securing data, shows a 23.1% increase in data exfiltration from employees the day before they were fired and a 109.3% increase the day they were fired.
There are various steps to take to prevent or reduce data theft when you’re preparing for layoffs. We’ll discuss steps you can take to control your risk and the instances when a cyber insurance policy will (and won’t) respond.
Risk and How It Arises
The knowledge of an impending layoff increases a company’s risk of data theft. There are various ways it can happen. Human Resources may allow an employee to…
