Insider Threat Attacks in 2026: Why Former IT Employees Are One of the Biggest Cybersecurity Risks

Keywords: insider threat, former employee cyber attack, IT admin security risk, offboarding security checklist, zero trust security, Microsoft 365 security, cloud admin risk, business cybersecurity 2026, Hawki IT

What Is an Insider Threat in Cybersecurity?

An insider threat is a cybersecurity risk that comes from someone who already has or previously had authorized access to a company’s systems, network, or data. This includes:

• Current employees

• Former employees

• Contractors

• IT service providers

• Vendors and consultants

In 2026, insider threats are one of the fastest-growing causes of major business-disrupting cyber incidents, especially in cloud environments like Microsoft 365 and Azure.

Real Case: Fired IT Contractor Causes $862,000 in Damages

In late 2025, a fired IT contractor in the United States pleaded guilty after illegally re-entering his former employer’s systems and resetting approximately 2,500 employee passwords, effectively shutting down the business.

The attack caused more than $862,000 in direct financial damage, not including reputational harm, lost productivity, and operational disruption.

This attack did not use advanced malware. It used:

• Legitimate admin tools (PowerShell)

• Knowledge of the internal environment

• Gaps in offboarding and access control

This is a textbook insider threat attack.

Why Insider Threat Attacks Are Increasing in 2026

1. Layoffs, Turnover, and Contractor Churn

With ongoing layoffs across technology and professional services, more organizations are experiencing frequent changes in IT staff and vendors. Every departure creates a potential security gap if access is not removed perfectly and immediately.

2. Over-Permissioned IT Environments

Many businesses still operate with:

• Too many global administrators

• Shared admin accounts

• Permanent privileged access

• Poor documentation of who has access to what

• 
  

This dramatically increases insider risk.

3. Cloud Platforms Increase the Blast Radius

In Microsoft 365, Azure, Google Workspace, or AWS, one compromised admin account can:

• Lock out all users

• Delete email and files

• Remove backups

• Disable security controls

• Destroy the entire tenant

• 
  

This can happen in minutes.

Common Insider Threat Security Failures We See in Businesses

Based on real-world assessments, the most common issues include:

• Former employees still have VPN, email, or cloud access

• Old IT vendors still have admin permissions

• No central access inventory

• No formal offboarding security checklist

• No alerting on privilege abuse

• No logging or monitoring of admin actions

These are among the most common cybersecurity audit failures in North America.

These are not rare. They are normal.

Real World Examples

Real Case #1 — The $862,000 Revenge Attack (2025, USA)

Fired IT contractor resets 2,500 passwords using PowerShell, locks out entire company, causes $862,000+ in damages. Gained access because offboarding was incomplete.

Real Case #2 — MGM Resorts (Social Engineering + Identity)

Attackers didn’t hack servers. They called the helpdesk, got access reset, and shut down hotels and casinos. Cost: tens of millions.

Real Case #3 — What We See in MSP Audits (Very Common)

In real environments we routinely find:

• Former IT providers still have Global Admin

• Ex-employees still have VPN or M365 access

• Shared admin accounts no one can trace

• No logs on who touched identity or backups

Can a Former IT Admin Still Access Company Systems?

Yes — in many organizations, former IT staff and vendors still retain some level of access due to:

• Forgotten admin accounts

• Shared credentials

• Old MFA tokens

• Service accounts

• Poor documentation

This is one of the most common causes of serious security incidents in small and mid-sized businesses.

How to Prevent Insider Threat Attacks: Best Practices for 2026

1. Implement Zero Trust Security

Zero Trust means:

• No one is automatically trusted

• Access is granted only when needed

• Privileged access is time-limited

• All sensitive actions are logged and monitored

• 
  

Zero Trust is now a baseline requirement, not an enterprise luxury.

2. Make IT Offboarding a Security Incident Process

When an IT employee, contractor, or vendor leaves:

• Disable accounts immediately

• Revoke sessions and tokens

• Rotate passwords and keys

• Review all admin roles

• Remove third-party access

This should happen the same day — ideally the same hour.

3. Monitor Privileged Access Continuously

You should receive alerts when:

• Admin privileges are changed

• Identity systems are modified

• Backups are accessed or deleted

• Security controls are disabled

Executive Question: Are You Protected From a Former IT Admin?

A simple test:

If your senior IT administrator left today, are you 100% certain they could not access anything?

If the answer is anything less than absolutely yes, you have a material business risk.

How Hawki IT Helps Reduce Insider Threat Risk

Hawki IT is a North American IT security and managed services firm helping businesses in Canada and the United States reduce insider threat risk by:

• Auditing access and permissions

• Securing Microsoft 365 and cloud environments

• Implementing Zero Trust architectures

• Designing secure offboarding procedures

• Deploying monitoring and incident response controls

• Creating real-world insider threat response plans

Frequently Asked Questions

1. What is the biggest insider threat risk?

   
   

   Former IT administrators and contractors with leftover access are one of the highest-impact and hardest-to-detect cybersecurity risks.

   
   

2. How common are insider threat attacks?

   
   

   Insider threats are now one of the top causes of major security incidents in mid-sized businesses, especially in cloud environments.

   
   

3. Can a former employee still access company systems?

   
   

   Yes. In many companies, access is not fully removed due to poor offboarding processes.

   
   

4. How do you prevent insider threats?

   
   

   By using Zero Trust, strict offboarding, least-privilege access, and continuous monitoring of admin activity.

Why Businesses in 2026 Are Prioritizing Insider Risk

Cyber insurance providers, auditors, and regulators increasingly require:

• Proof of access control

• Privileged identity management

• Logging and monitoring

• Incident response readiness

Insider threat preparedness is now a business requirement, not just an IT concern.

Book a Complimentary Insider Risk & IT Strategy Review

Hawki IT offers a complimentary IT Strategy & Insider Risk Review for businesses in Canada and the US.

You’ll learn:

• Who has access to what

• Where your insider risk is highest

• What could realistically be abused

• What to fix first

👉 Visit www.hawkiit.com/get-started or email sales@hawkiit.com to book your session.

Final Thought

Trust is not a security control.

Modern cybersecurity assumes that eventually, someone with access will make a mistake, get compromised, or act maliciously.

The companies that survive are the ones that design for that reality.