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Insider Incidents Cost Organizations $19.5M on Average in 2025

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The average cost of insider incidents surged 20% to nearly $20 million per organization in 2025, driven primarily by employee negligence related to shadow AI usage. Malicious insider activities accounted for 27% of losses, while negligence and mistakes amounted to $10.3 million per company. The report highlights the growing risks associated with undocumented AI use and the need for better AI governance policies.

Timeline

  1. 24.02.2026 19:00 1 articles · 3h ago

    Shadow AI Usage Drives 20% Increase in Insider Incident Costs

    In 2025, the average cost of insider incidents surged to $19.5 million per organization, with shadow AI usage being a significant factor. Employee negligence, including the use of personal webmail, file sharing sites, and shadow AI, accounted for 53% of the losses. Malicious activities accounted for 27% of the total losses, while phishing-related incidents accounted for 20%. The report highlights the need for better AI governance policies to mitigate these risks.

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Information Snippets

  • Employee negligence accounted for 53% of insider-related losses, averaging $10.3 million per organization.

    First reported: 24.02.2026 19:00
    1 source, 1 article
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  • Malicious insider activities, including sabotage and data theft, resulted in $4.7 million in losses per company.

    First reported: 24.02.2026 19:00
    1 source, 1 article
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  • Shadow AI usage, including the inputting of internal documents into public models like ChatGPT, contributed significantly to negligence-driven losses.

    First reported: 24.02.2026 19:00
    1 source, 1 article
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  • The average time to contain an insider incident decreased from 86 days to 67 days, attributed to improvements in behavioral analysis.

    First reported: 24.02.2026 19:00
    1 source, 1 article
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