What a Disgruntled Ex-Employee Who Cost a Company $678,000 Can Teach All Business Owners

What a Disgruntled Ex-Employee Who Cost a Company $678,000 Can Teach All Business Owners

In early June, Kandula Nagaraju, a 39-year-old former National Computer Systems employee from India, received a two-year, eight-month prison sentence for unauthorized access and deletion of 180 test servers at his previous workplace.

Despite being terminated in October 2022 due to performance issues, Nagaraju retained access to company systems. He used this access to develop and execute scripts that deleted the servers. This action cost NCS approximately $678,000 to rectify. Fortunately, his nefarious deeds did not compromise sensitive data as the servers were isolated and used for app testing. But, the company still suffered an enormous financial loss. Plus, things could have been a lot worse.

This single case serves as a critical reminder: ex-employees can still be a liability, and if they maintain their insider access, they can exploit said access to inflict extensive damage. Not only monetarily, but on a much wider and more consequential scale. So harmful, that it could bring a company down and ruin its reputation to the point of no return.

Why Businesses Should Always Delete the Credentials of Former Team Members

Sadly, Nagaraju is just one example of many. Several companies have suffered immensely – but unnecessarily – simply because those organizations did not take the proper steps to protect themselves. Instead, they were complacent or too late to act and the results were disastrous. Because of these instances, businesses should always remove ex-employee credentials to keep their corporate data and work product secure for several reasons:
  • Data security. Ex-employees may still have access to sensitive company information, such as customer data, trade secrets, or financial information. Removing their access ensures that this data remains secure and is not accessed or misused by unauthorized individuals.
  • Prevent unauthorized access. Even if an ex-employee has left the company – even on good terms – there is always a risk that they could use their access to the company’s systems to make changes or access data without approval. Removing their credentials prevents this from happening.
  • Compliance. Many industries have regulations that require companies to protect sensitive data. By removing ex-employee credentials, companies can ensure they are meeting these compliance requirements.
  • Insider threats. Ex-employees may be disgruntled or may have left the company under less-than-ideal circumstances. They could potentially use their access to company systems to sabotage the company or steal data. Removing their credentials helps to mitigate this risk.
  • Avoid confusion. If an ex-employee’s credentials are not removed, it can lead to confusion about who has access to what. This can make it more difficult to manage access to systems and data.
And last but not least, data breach prevention. If an ex-employee’s credentials are compromised, it could lead to a data breach. Removing their credentials helps to prevent this. By deleting their access, companies have less risk of sensitive information getting out into the public domain. Because once that data is out, it’s up for grabs for anyone to capture it.

So, businesses of all sizes should have a process in place to address such security issues. When an employee leaves the company voluntarily or a team member is terminated, that person’s credentialed access should immediately be removed. Additionally, steps must be taken to fill that new void to ensure workflow continues virtually uninterrupted in order to meet benchmarks and deadlines. Moreover, to keep proprietary data safe.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at (602) 541-1760, or, if you prefer, Waters Business Consulting Group to learn more about us and the services we offer.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Business Owners: Want to Win More Bids? Ditch the Lowest Price Strategy Now!

Tired of losing bids despite offering the lowest price? It’s time to rethink your strategy. Savvy business owners are winning more contracts by focusing on value, not just cost, and this gives them a key advantage in today’s super-competitive market. Below, we’ll look into why ditching the race to the bottom could be your key to securing more deals and boosting profits. Winning Contract Bids Without the Lowest Price: Smart Strategies for Business Owners For many business owners, securing a contract bid is a critical step toward growth and stability. But when competitors undercut your pricing, it can feel like an uphill battle. Fortunately, winning a bid isn’t just about having the lowest price—it’s about demonstrating unmatched value, reliability, and expertise. Here are the smartest strategies business owners can use to beat out competitors—even when they can’t offer the lowest price. 1. Highlight Your Unique Value Proposition Instead of competing on price, compete on value. What makes your business unique? Whether it’s exceptional service, proprietary methods, superior materials, or long-term cost savings, make sure your bid clearly communicates why you’re the best choice. 2. Focus on Quality and Longevity Some clients prefer reliability over rock-bottom pricing. If your product or service lasts longer, requires less maintenance, or improves efficiency, quantify that value. For example, a higher upfront investment in your service may reduce operational costs down the line—making your bid the smarter financial choice in the long run. 3. Showcase a Strong Track Record Clients want assurance that their investment won’t go to waste. Use testimonials, case studies, and historical data to prove that your company delivers results. Highlight successful projects, positive customer feedback, and retention rates that demonstrate your reliability and excellence. 4. Offer Customization and Flexibility Many companies struggle with one-size-fits-all solutions. If your competitors are bidding with generic offerings, showcase how your business tailors services to client needs. Providing custom options, phased implementations, or adaptable contracts can make you the preferred choice. 5. Strengthen Your Relationship with Decision-Makers Building strong relationships can significantly impact contract decisions. Engage with prospective clients before the bid process, understand their pain points, and position yourself as a trusted partner—not just a vendor. Personal connections and a reputation for integrity can make your proposal more appealing. 6. Provide Exceptional Customer Service A client’s experience matters just as much as the service itself. If you’ve built a reputation for responsive, personalized customer care, highlight it in your bid. Show how your customer-first approach helps clients avoid headaches down the road. 7. Offer Value-Added Incentives You may not be the cheapest option, but adding extras can sweeten the deal. Consider offering extended warranties, priority support, free training, or additional consulting as part of your bid package. Small enhancements can make a significant impact in the decision-making process. 8. Be Transparent About ROI Clients want to know why they should pay more. Break down the long-term return on investment (ROI) in clear numbers, showing that your offering delivers better results, fewer risks, and overall savings despite a higher initial cost. 9. Strengthen Your Proposal Presentation A well-crafted, professional bid stands out. Avoid generic templates—customize your proposal to address the client’s specific pain points. Use compelling visuals, clear data, and a persuasive narrative to make your case stronger than price alone. 10. Optimize Your Reputation in the Industry Your credibility matters. Industry awards, certifications, expert endorsements, and strong reviews enhance your perceived value. If your company has a respected name in the market, leverage it in your bid to strengthen your position. Winning Without Undercutting Prices Your ability to win bids without being the cheapest depends on how well you communicate your business’s strengths and advantages. Price may be a factor, but it’s not the only factor. With a strategic approach that highlights reliability, quality, and added value, your business can secure contracts while maintaining profitable pricing. Want to Accomplish More? Do you want your company to grow faster and earn more while spending more time with your family doing everything you started your business to do? We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 480-636-1720, or, if you prefer,

Read More »

Whether You Think You Can Or You Think You Can’t, You’re…Wrong?

Henry Ford once famously said, “Whether you think you can or you think you can’t, you’re right.” But, if you just replace the last word with its antonym, does it really change the statement’s meaning? It’s not much different than the glass half-empty, glass half-full analogy. The point is that in every situation, no matter how challenging, opportunity does present itself. It’s whether you choose to act on it or not. So, let’s take a few moments to break this down and gain some insight that can be very valuable in tough circumstances. Best Tips For Maintaining A Positive Outlook When Things Go Wrong We’ve all heard the comparison: entrepreneurship is a “rollercoaster ride” of highs and lows, triumphs and setbacks. While the allure of success drives many to embark on this journey, the reality often includes unexpected hurdles and long moments of doubt. When carefully laid plans go awry and obstacles seem insurmountable, maintaining a positive outlook can be a Herculean task. Yet, optimism is the lifeblood of entrepreneurship, fueling perseverance and innovation in the face of adversity. Staying Optimistic as an Entrepreneur Let’s stay with the rollercoaster analogy—some days you’re soaring high, and other days, you feel like you’re plunging down. It’s easy to get lost in the negativity that comes with challenges. But how can you keep that sparkle of optimism alive, even when the going gets tough? Below, we’ll explore some strategies to help you maintain a bright outlook, starting with perspective. Embrace the Learning Curve Every setback can feel like a punch to the gut, but what if we saw them as opportunities for growth? When things don’t go as planned, instead of sulking, ask yourself: “What can I learn from this?” Entrepreneurs are all about problem-solving. Shift your focus from the problem to the lesson. Treat it like opening up a roadblock on a thoroughfare. The more you learn, the stronger you become. Surround Yourself with Positivity Ever heard the saying, “You are who you hang out with”? It rings true for entrepreneurs, too. Surround yourself with people who lift you up, not those who bring you down. Friends, mentors, or even fellow business owners can spark a fresh wave of optimism. When you share your struggles with like-minded folks, it provides you with a cheering squad. Positive vibes are contagious—let them fuel your spirit. Set Small, Achievable Goals Large goals look a lot like mountains on the horizon. They can be overwhelming, especially when obstacles appear. Why not break that mountain down into smaller, manageable hills? This way, every small step you take feels like a victory. Celebrate those wins, no matter how tiny they seem. Each small success can boost your confidence and help you stay optimistic about reaching your ultimate goal. Cultivate Gratitude Daily It’s easy to dwell on what’s going wrong, but spotting the good in your day can flip the script. Take a moment to jot down three things you’re grateful for every day. It could be a helpful customer, a supportive friend, or just a sunny day. This simple act can shift your mindset from scarcity to abundance. When you focus on gratitude, optimism naturally follows. Visualize Your Success Picture this: you’re standing on a stage, your business thriving, customers loving your product. How does that feel? Visualization is a powerful tool. Spend a few minutes each day imagining your success. This practice ignites motivation and fuels optimism. When you can see the finish line, it’s easier to stay positive when hurdles appear along the way. Find Inspiration Everywhere Life often has its fair share of ups and downs. Seek stories of other entrepreneurs who have faced adversity and come out shining. These tales can act as fuel for your fire. When you hear how someone turned their setbacks into comebacks, it’s the same as a light bulb flicking on in your brain. It reminds you that challenges don’t define you—they’re merely stepping stones on your path to success. Practice Self-Care Regularly Amid the hustle and bustle of entrepreneurship, it’s easy to overlook your well-being. Neglecting self-care can drain your energy and optimism. Make time for activities that recharge your spirit—be it exercise, meditation, or reading a good book. Taking care of your body and mind equips you to handle challenges with a clearer perspective. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 480-636-1720, or, if you prefer,

Read More »

How to Avoid the Prisoner’s Dilemma Business Trap

The prisoner’s dilemma is a simple principle that explains a very inconvenient paradox. That being, when two or more people are in competition to reach the same goal, instead of working together, they’ll more often make self-serving or sub-optimal choices to their desired end. In other words, they won’t work as a team, attempting to obtain the same result, but rather, as mutual competitors. When this happens, it can easily lead to unhealthy competition, jealousy, infighting, and poor company morale. Fortunately, there are a few effective strategies to cope with such situations. What Causes the Prisoner’s Dilemma in Business Named for a scenario to explain why prisoners do not routinely rise up against the guards of a penitentiary, the prisoner’s dilemma attempts to define why it is that inmates don’t rally together to overtake the facility in order to ultimately escape. (After all, they greatly outnumber the guards and other staff.) …a teaming mindset must be adopted on purpose. Team leaders must paint success in the team as something shared and expansive. Because seeing success this way is rarely spontaneous, leaders have to go out of their way to convey — to sell, really — the upside of collaborative work. The message must be that success can be greater and more exciting when people work together. When this is done well, team members tend to focus more on the work than on themselves. They also focus on what the work means for the company’s value proposition — for their customers. —Harvard Business Review The reason behind it is simple — while everyone might be ostensibly working toward the same goal, that is taking over and breaking out of the prison, each person will act in their own individual best interest — this ultimately leads to chaos and of course, makes the end goal of escaping nearly impossible. Effective Strategies for Dealing with the Prisoner’s Dilemma in Business You might have noticed this dynamic working out among your sales team or any given group of employees. They seem to be in a constant state of competition, even to the point of harming your company’s overall goals. The good news is there are ways to deal with such scenarios, like the following: Encourage healthy discussions. Although some individuals seemingly always do what’s only in their self-interest, very few will continue such behavior if they know that it’s counterproductive to their future. During sales meetings, come up with common strategies that everyone can agree to follow and put everyone on the same path toward your desired goals. Scrutinize potential hires. If someone has a very impressive track record, but hops from one company to another, that’s obviously a red flag. So, listen carefully during the interview process for attitudes that convey job dissatisfaction, unhealthy competition with previous employees/employers, and other negative perspectives and emotions. Such individuals will tell you in not-so-subtle ways that they don’t work well with others. Reward genuine teamwork. Ronald Reagan copied a famous inspirational phrase by repeating this sentiment, “It’s amazing what can be accomplished when nobody cares who gets the credit.” This is very difficult for any group, especially those in a competitive environment. But, if you reward everyone involved for working as a team to reach their goals, you reinforce positive behaviors. What other suggestions do you have? Please take a moment to comment and share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »