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HRM Review Magazine:
Preventing Insider Cyber Crime with Sound Hrm Practices
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Threat of hacking from the outsiders is a known fact, but some statistics suggest that 65% of the cyber crime is accounted for from within the organizations.

In the Internet and e-commerce era, all the organizations are totally dependent on complex information systems for conducting their businesses. This dependency on technology makes them vulnerable to computer crimes. In the cyber economy, the most important assets of any organization are its data and information resources. All organizations in general and e-commerce organizations, in particular, are well aware of this fact and are taking many security measures to safeguard their interests. World over, organizations are spending billions of dollars on information security and related issues. However, most organizations are catering well for security threats from outsiders like hackers but surprisingly not taking the threat from insiders seriously. According to various studies, though the threat from outsiders is growing in the recent past, threat from insiders still accounts for more than 60% of the cyber crimes committed. By and large the organizations are either underestimating the insider threat or ignoring the same under the false belief that there is no such threat to their organizations. However the proven fact is that no organization is safe from insider attacks. At the core, insider threat is more of a Human Resource Management (HRM) problem than a technological problem. It deserves an analysis of the phenomena of insider crime, who all comprise insiders, what motivates them and various methods insiders follow to perpetuate the crime and strategies organizations can adopt to prevent insider crime.

In any organization, it is the people of the organization, the insiders, who design the complex information systems. It is their own people who are operating and maintaining them. All organizations must realize that the people who can design and operate the systems can also attack the systems. And that is what is really happening. Cyber Crime is also known as Insider Crime due to the sheer number of such incidents. According to IT security pundits like Gartner and others, company insiders account for 60% of all criminal activity and security incidents. They are of the view that most of the security managers and Chief Information Officers (CIOs) are not paying the required attention to this aspect, which has the potential to adversely affect the organizational performance. And these observations are valid. Further, some studies point out that organizations are adopting new management practices like `Knowledge Management' which mandate that the organizational information should be freely available to the employees for effective functioning. Sharing of information and organizational networks, relative free access by employees and other insiders, accrue a number of benefits to the organization but at the same time pose a great security threat.

 
 
 

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