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What is Data Loss Prevention (DLP)?

As our society grows more digital, enterprises relying on cloud storage are more susceptible to threats. Since risk can never be completely eradicated, insider threats, attacker extrusion, and inadvertent or careless data disclosure are three frequent scenarios behind security breaches. As security becomes one of the biggest barriers to cloud adoption, businesses are hesitant to share data with their partners. With this transition, Cloud Data Loss Prevention (DLP) offers an approach to safeguard sensitive information that many businesses exchange on SaaS, IaaS, and PaaS platforms. Such advancements in data loss prevention methods further detect complex cyberattacks that get past enterprises’ cybersecurity controls as our society evolves. 

Understanding Data Loss Prevention (DLP)

DLP ensures that sensitive information does not leave the corporate network. DLP is a combination of methods and technologies that categorize, identify, and safeguard data in three states: data in use, data at rest, and data in motion.

  • Data in use: Data constantly being updated, analyzed, discarded, accessed, or read by a system. 
  • Data in motion: Data being transmitted across networks, actively monitored by data centers to prevent unauthorized access. 
  • Data at rest: Data stored in a data center, not actively managed, but still requiring protection. 

DLP solutions can automatically detect and block unauthorized access to sensitive information, such as personal or financial data, before it is sent out of your organization. These solutions provide data loss protection by safeguarding sensitive information against data breaches, exfiltration, or accidental deletion.

The Importance of DLP

DLP is a technology that helps protect your confidential data from leaks and loss. Data loss protection mechanisms are  used to protect personally identifiable information (PII), ensure compliance with regulations such as HIPAA or GDPR, and protect intellectual property (IP). In addition, DLP helps organizations understand where their data lives and how it moves. DLP solutions classify, detect, and protect critical data to prevent unauthorized users from accidentally or maliciously sharing it, thus reducing organizational risk.

As more businesses adopt cloud computing services, which store data on remote servers rather than local computers, the ability to prevent data leakage has become an essential layer of defense within a comprehensive DLP framework. DLP is able to help with the following: 

Prevent Insider Threats

DLP ensures that data is protected in an inevitable scenario where an employee might make a mistake, such as sending a sensitive email to the wrong person or inadvertently sharing confidential information with unauthorized users. The risk of data loss heightens when employees handle sensitive information on their computers. 

Additionally, DLP helps curb malicious acts. Employees may intentionally steal data as part of a larger scheme to commit fraud or sell personal information on the black market. Insider threats can have serious consequences for both individuals and businesses.

With data loss protection policies, organizations can ensure that confidential files remain secure even when employees access data remotely or across devices. 

Protect confidential data and intellectual property 

DLP is the practice of identifying and protecting sensitive information within an organization, regardless of where it is stored. Data leakage prevention tools, as part of a DLP solution can detect, monitor and prevent both intentional and unintentional disclosure of confidential data. These solutions offer intellectual property protection by detecting unauthorized access to sensitive information. They can track who accessed confidential data, such as trade secrets or employee records, when the access occurred, what was printed after accessing the documents, and other important details about suspicious activity surrounding confidential data.

Comply with industry regulations 

One of the most compelling reasons to implement DLP is to ensure compliance with industry regulations. In the United States, regulations such as the Federal Trade Commission Act (FTCA), Gramm-Leach-Bliley Act (GLBA), Health Insurance Portability and Accountability Act (HIPAA), and International Traffic in Arms Regulations (ITAR) impose strict requirements on data protection, mandating transparency, restricting unauthorized data sharing, and requiring safeguards to protect sensitive information. Non-compliance can result in legal and financial penalties, making DLP a critical tool for regulatory compliance.

With strict data protection requirements, data loss prevention systems are a key enabler of compliance for enterprises in regulated industries. 

Best Practices for DLP

Each enterprise manages a unique set of sensitive data, making safeguarding this information a critical yet complex challenge. Data loss protection strategy, combined with automation and monitoring, ensures consistent defense across all data states. This section outlines the key technologies and best practices for effectively implementing a DLP solution.

  • Data Classification: Enterprises must establish a structured approach to data classification by identifying sensitive data, categorizing it, and assigning the appropriate level of security based on its sensitivity. This process can be manual, automated, or a combination of both, considering factors such as data type, sensitivity level, and user access requirements. By identifying sensitive data, enterprises gain visibility into which types of information, if stolen, would pose the greatest threat, allowing them to prioritize protection efforts. 
  • Fine-Tuned Access and Usage Controls: A policy-based approach to access and usage controls is essential as it ensures that sensitive information is consistently protected from unauthorized access, modification, and exfiltration. Leveraging technologies such as data masking, data segregation, and format-preserving encryption (FPE) ensures that sensitive information remains protected while allowing authorized users to work with necessary data. These technologies allow organizations to implement security controls that align with data sensitivity, ensuring that only authorized users can access sensitive information, and maintain regulatory compliance. 
  • Securing Data in Motion and at Endpoints: Data is most vulnerable when shared externally with partners, clients, or supply chain members, or accessed on endpoint devices. To prevent unauthorized data transfers, a DLP solution leverages on network monitoring, endpoint agents, and cloud-based security measures. Technologies like USB device control, email filtering, and real-time blocking of unauthorized uploads mitigate risks associated with removable storage devices, email attachments, and cloud collaboration platforms. 
  • Automating Data Protection and Preventing Incidents: Human error remains a significant factor in data loss, even when technological safeguards are in place. To minimize risks, organizations should implement automated security controls that proactively prevent accidental data leaks. With automation, policies can be enforced in real time to prevent unauthorized data transfers before they happen. Additionally, integrating DLP with Security Information and Event Management (SIEM) solutions enhances real-time monitoring and enables automated prevention of suspicious activity, ensuring effective containment of potential threats. 

Key Take-Aways

Data Loss Prevention (DLP) is an important part of any organization’s information security strategy. It enables enterprises to safeguard their data, ensuring both security and compliance with industry regulations, while also mitigating the risk of insider threats. It can be challenging for administrators to protect the environment from a range of potential threats. DLP is vital for enterprises because it scans for potential discrepancies and integrates with risk-reduction approaches. Thankfully, many of the compliance and cybersecurity concerns that exist today can be effectively managed with the implementation of a data loss prevention strategy that includes data leakage prevention capabilities, helping to avoid costly fines and detrimental effects in the long run. 

For more information, watch NextLabs’ video: Protection of Sensitive Attachments with SkyDRM