When a trusted employee walks out the door, they may take more than their knowledge and experience, sometimes, they leave with sensitive data, trade secrets, or intellectual property. These situations, while uncomfortable, are not uncommon. And they can have serious legal and financial consequences.
While every case is different, many follow familiar patterns. In this post, we’ll look at recurring behaviors in insider IP theft and offer practical advice for spotting red flags, preserving evidence, and responding with clarity.
Common Patterns in Insider Data Theft
Most insider incidents aren’t sophisticated espionage operations. Instead, they often involve employees taking files they feel entitled to, or are simply preparing to compete against their former employer. Common behaviors include:
- Emailing sensitive documents to personal accounts
- Syncing company folders with cloud storage (Google Drive, Dropbox, etc.)
- Copying data to USB drives shortly before resignation
- Deleting activity logs, emails, or entire user profiles
- Installing remote access tools to retain access post-departure
Recognizing these actions early is key to stopping the damage and understanding what occurred.
Indicators Worth Investigating
When evaluating a potential insider incident, some digital clues often appear:
- USB activity not previously seen on the device
- Unusual file access outside of normal working hours
- Large numbers of files opened, copied, or compressed
- Unexplained user account deletions or system resets
- Sudden changes in file sharing permissions
These indicators don’t always mean wrongdoing, but they’re worth investigating, especially when paired with a suspicious exit or dispute.
Best Practices: How to Respond Effectively
If you suspect intellectual property theft or misuse of sensitive information:
- Secure any relevant devices: Avoid letting IT or users continue using potentially compromised machines.
- Preserve email and cloud accounts: Don’t delete anything, even if the user has already left.
- Log access controls and activity: Retain logs that show how data was accessed, copied, or moved.
- Avoid internal “clean-up” attempts: Internal efforts to check a device can unintentionally alter or destroy useful forensic evidence.
- Document everything: Record timelines, personnel actions, and device handling as part of an internal case file.
A Practical Example
In one matter we reviewed, a key employee provided two weeks’ notice and seemed to leave amicably. A few days after their departure, the company discovered missing design files and within a month, an upcoming product strikingly similar to their own was announced by a competitor.
A forensic review showed those files were accessed and transferred via USB in the employee’s final hours on-site, a clear violation of policy. The evidence supported swift legal action and helped preserve the company’s IP.
Protective Measures Moving Forward
While not every insider threat can be prevented, there are steps you can take to reduce risk:
- Enforce strong offboarding procedures
- Limit employee access to only what they need
- Monitor for suspicious data transfer activity
- Use endpoint logging and auditing tools
- Regularly review user permissions and admin access
Intellectual property theft by insiders can be subtle, damaging, and difficult to detect without the right approach. By recognizing behavioral patterns, preserving digital evidence, and acting quickly, companies can protect their most valuable assets.
If you encounter a situation involving suspicious file activity, unexpected data loss, or a contested employee departure, responding early and thoughtfully can make all the difference.
About Swailes Computer Forensics
Swailes Computer Forensics provides expert digital forensic services to law firms, corporations, and organizations nationwide. Our work includes investigations into intellectual property theft, employee misconduct, data breaches, and more. With decades of experience and a commitment to integrity and clarity, we help clients uncover critical evidence and take informed action.
If you’re facing a potential case of employee data theft or have concerns about unauthorized activity, contact us for a confidential consultation.