As part of Seyfarth’s 2026 Trade Secrets Webinar Series, our panel presented Digital Exfiltration & Departing Employees: Protecting Trade Secrets in a Modern Risk Environment, examining the growing risks organizations face as employee mobility increases and technology creates new avenues for information transfer.
Jay Carle, Marcus Mintz, and Joe Greenfield of Maryman led a practical discussion for in-house counsel, HR professionals, executives, and business leaders focused on identifying, preventing, and responding to trade secret theft and data exfiltration.
View the Recording – CLE credit for this recording expires on June 17, 2027. Please refer to the program description for jurisdiction-specific details and deadlines.
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Key Takeaways
Most Trade Secret Risks Begin with Departing Employees
Departing employees remain one of the leading sources of trade secret misappropriation. Organizations often have only a narrow window to identify suspicious activity before valuable confidential information leaves the company. The consequences can include lost competitive advantage, costly litigation, and reputational damage.
Data Can Leave the Organization in More Ways Than Ever
Today’s exfiltration methods extend far beyond USB drives. Employees can transfer information through personal devices, cloud storage platforms, personal email accounts, remote-access software, printed documents, mobile device photos, and even AI tools. Understanding these evolving pathways is essential for building an effective prevention strategy.
Prevention Requires a Layered Approach
No single safeguard is enough. Effective protection combines strong legal agreements, clear technology-use policies, and technical security controls. Well-drafted confidentiality agreements, BYOD and AI-use policies, data loss prevention tools, multi-factor authentication, and data classification programs work together to reduce risk and improve defensibility when issues arise.
Watch for Behavioral Red Flags
Technical monitoring is important, but human behavior often provides the earliest warning signs. Unusual after-hours downloads, sudden interest in information outside an employee’s responsibilities, requests for expanded access, declining engagement, or communications with competitors can all warrant closer review. Early detection frequently makes the difference between preventing a loss and responding to one.
Speed and Documentation Are Critical When Someone Leaves
Organizations should have a well-defined departure playbook that includes exit interviews, certification of data return or deletion, forensic preservation procedures, and cross-functional coordination among Legal, HR, and IT. If misconduct is suspected, the first 72 hours are often the most important. Thorough documentation before, during, and after an employee’s departure can be invaluable in any subsequent investigation or litigation.
Final Thought
Protecting trade secrets is not solely a legal, HR, or IT responsibility. Success requires a coordinated, proactive approach that combines policies, people, and technology. Organizations that prepare before a high-risk departure occurs are far better positioned to prevent data loss and respond effectively when concerns arise.
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