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External Threats vs. Internal Threats in Cybersecurity

by ZeroFox Team
External Threats vs. Internal Threats in Cybersecurity
8 minute read

When it comes to cyber threats, you’ve got two problems: what’s inside, and what’s coming for you when you step out the proverbial front door. Internal threats hide within your network. External threats lurk across social media, marketplaces, phishing emails, and the dark web. Miss either one, and you're playing defense with blinders on. This guide breaks down the difference between internal and external threats, how each operates, and why a balanced, zero-trust approach is the only way to stay ahead.

External Threats vs. Internal Threats in Cybersecurity

CategoryExternal ThreatsInternal Threats
DefinitionThreats that originate outside the organization’s network and target external-facing assets, people, or infrastructureThreats that originate within the organization, whether intentional or accidental, and occur inside the network perimeter
ExamplesPhishing attacks, domain spoofing, social media impersonation, malicious apps, dark web data sales, DDoS attacks, brand abuseMalware, ransomware, insider threats, credential misuse, misconfigured systems, compromised endpoints
Primary MotivationFinancial gain, reputational damage, political or social causes, fraud, or disruptionData theft, monetary gain, sabotage, human error, or revenge
Attack VectorOutside-in: via the web, social media, app stores, email, or underground forumsInside-out: through compromised accounts, infected devices, internal access abuse, or employee mistakes
Detection DifficultyOften harder to detect without specialized tools; attacks happen beyond the firewall and on third-party platformsGenerally easier to detect with enterprise-grade tools like SIEM, EDR, and XDR that monitor internal traffic and assets
Prevention MethodsExternal threat intelligence, takedown services, brand and domain monitoring, social media protection, dark web monitoringEndpoint protection, employee training, access controls, patch management, firewalls, and behavioral analytics
Response StrategyDisruption and takedown of external threats, public attribution, digital footprint protection, continuous monitoring of external ecosystemsQuarantine, patching, user offboarding, forensic investigation, system recovery, and containment within the network
FrequencyConstant and opportunistic; increases with online exposure and brand recognitionLess frequent but potentially more damaging when successful
Potential DamageBrand damage, customer trust erosion, data leaks, financial fraud, regulatory violationsOperational disruption, ransom payouts, IP theft, compliance violations, financial loss
Real-World ExamplesExecutive impersonation on social media, phishing sites using spoofed domains, stolen credentials on dark web forums, targeted DDoS on public servicesRansomware attacks like NotPetya or LockBit, insider threats selling data, employees clicking malicious links on work devices
How ZeroFox HelpsDetects and disrupts external threats with AI-driven intelligence, global takedown services, and analyst-vetted alerts beyond the perimeterComplements internal tools by surfacing external threats that may lead to internal compromise (e.g., leaked credentials or insider sales of access)

What are External Threats?

External threats in cybersecurity are risks that originate outside the network, taking in public-facing forums and world events. Hence, external cybersecurity can be defined as, “the orchestration of humans and machine intelligence to discover and disrupt threats beyond the corporate perimeter.” We all know there is no such thing as a security perimeter anymore, but the corporate enterprise has its bounds. Beyond those lie risks to data, people, domains, apps, and the brand at large. These risks are lurking on malicious domains, in social media apps, and on the open web, in emails as phishing attempts, and as attack chatter on the Deep and Dark Web, to name a few vectors. The perpetrators? Hacktivists, cybercriminals, nation-states, and geo-political dissidents. The list goes on.

Do you see how hard it would be to “catch” all these threats with traditional enterprise-bound tools? An XDR tool, for all its power and use, cannot search back-alley channels of Tor to proactively scope out percolating danger. SIEMS and firewalls, and SOAR tools cannot reach LinkedIn and remove sensitive data that’s been posted by an unwitting employee, or protect an executive’s account from being impersonated. And yet those threats are out there, and someone has to account for them. Saying your security tools don’t reach far enough may be true, but it won’t be any consolation when your organization falls prey to an external blind-spot attack.

Download the Complete Guide to External Cybersecurity 

What are Internal Threats?

On the other hand, we're more used to seeing internal threats. They are what most typically think of when we define cyber threats at large, and usually don’t extend beyond the “perimeter”. This means that the threats originate in or primarily take place within the corporate enterprise. So, we can detect, investigate, and block them there.

Internal threats include ransomware and malware threats, C2 commands, viruses and exploited vulnerabilities, cross-site scripting exploits, and signature-based threats. They can also be part of broader schemes of cybercriminal science and require AI-driven solutions to ferret them out. The differentiating factor is the fact that they are found and fought by enterprise security tools within the bounds of the company’s digital ecosystem.

Differences between External and Internal Threats

External and internal threats in cybersecurity not only differ in type and origin, but in methods, motives, and risks. 

External threats are perpetrated in “the digital environment beyond your perimeter where digital innovation happens, customers engage, and threat actors lurk.” These threats happen via brand impersonation (by anyone from domain squatters to nation-state actors), executive impersonation (when a C-level gets spoofed), illegitimate apps carrying malware, fake job postings, DDoS attacks planned in the Underground Economy, and more. Bad actors behind these crimes are often social engineering experts and can be spurred on by a variety of motives: personal or social issues that would lead them to ruin a brand (hacktivists), political leanings (nation-state actors), or financial gain (job board spoofers). Unfortunately, they create a unique flavor of risk for the companies they target: brand and reputational damage, monetary loss, and even physical harm.

Internal threats often involve more sophisticated attack methods and are motivated mainly by material gain. A criminal hacking organization might release a never-before-seen advanced exploit that travels through a company’s software supply chain (NotPetya anyone?), perform a cross-site-scripting or man-in-the-middle attack, attempt to leverage expired certificates to gain entry into a system, or otherwise infiltrate network bounds and try to achieve root access. The goal can be data exfiltration (for the purpose of data sale), network disruption (often the work of nation-state actors), a ransom payment (ranging up to $40M), or infamy (as hacking groups try to ‘make it big’ with Colonial Pipeline-scale headlines).  

Both threats are critical and you should take them seriously. Together, they form the foundation of the holistic cybersecurity approach that is simply necessary in today’s threat environment. Companies face risks from all sides – sophisticated cybercriminals trying to sneak emerging exploits in and encrypt databases at the level of the kernel, and bad actors on the dark web planning new ways to DDoS a water utility or take over the Twitter account of a Fortune 500 CEO. Either way, it’s bad news.

Balancing External and Internal Threat Protection

It makes no sense to lock the front door while leaving the back wide open. Similarly, securing an enterprise with state-of-the-art, AI-driven technology and failing to guard the company’s online presence only blocks some threats while inviting others. Both can incur costs any company would be unwilling to bear.

Achieving balance between the two sides means finding the resources that will do the job best, on both sides. This could mean an in-house XDR solution for combating internal threats. Or, it could mean an outsourced SOC. Alternatively, a range of disparate, ad-hoc external security solutions (the current status quo), or this could mean a managed external security provider.

As we stated in a previous blog, external cybersecurity is not “a replacement for firewalls, endpoint detection and response solutions (EDR), cloud access security brokers (CASB), etc.” Instead, the value add it can bring to the table is knowing when your records have been breached (and are being sold) on the Dark Web, and whether underground attack planning is taking place against your enterprise. You don’t have to be high-profile to be the subject of attack: external bad actors often target utilities, celebrities, or anyone they think can influence others to give away information or spend money in a ruse.

Keep internal controls while adding external security measures on top of an existing strategy. Don’t lessen defenses inside but do increase them outside. A balanced approach to cybersecurity starts where you are and builds, which is why companies should see if they have the resources for an external threat team – and if not, contact an external cybersecurity provider that can navigate the waters for them.

When done right, both internal and external security components lead to each other. Internal tools collect valuable data that is then synthesized by external cybersecurity models and used to build threat profiles on possible wrongdoers. External security solutions add additional insight and context to what might otherwise seem like a host of unrelated threats. External cybersecurity can also detect insider threats selling IP or remote access.

Used in tandem, external and internal security measures can disrupt potential threats before they get to your network – no matter where they’re from.

Conclusion

While different in nature and scope, external and internal threat detection methods provide a crucial combination for a winning cybersecurity approach. 

Internal threats do most of their damage within the inner workings of the network, and external cybersecurity covers threats that lurk in the greater digital (and often physical) world. Often, when a cybercriminal can’t get in one way, they’ll use the other. 

That’s why it’s so key to maintain a security strategy that regularly maintains and invests in best-in-class solutions for both, and leverages the expertise needed to run both sides with facility. 

ZeroFox is the leader in external cybersecurity, with inroads into the Underground Economy and years of experience in digital takedowns. From removing and debunking online impersonations and account takeovers to providing best-in-class brand protection, domain protection, social media protection, Dark Web monitoring, and a lot more, we’ve got the know-how to make sure your security strategy secures against threats on all fronts.

Want to learn more? Request a free demo today to see ZeroFox in action.

Tags: Digital Risk Protection

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