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What Is Data Loss Prevention? DLP Types and How It Works?

Philip Robinson | 13 min read| Updated On - February 29, 2024

What Is Data Loss Prevention

With the ever-increasing amount of data that companies collect from customers and the changing threat landscape, it’s important to make sure that personally identifiable information (PII) is safeguarded so that it doesn’t end up in the wrong hands.

Data breaches are hitting the headlines more frequently and can result in major reputational damage and large fines from data commissioners and regulatory bodies.

While many breaches occur through hacked databases or websites, employees can also accidentally leak information by forwarding emails and/or attachments to people outside the company or others who are not authorized to view the information.

Ransomware attacks are also increasing, and companies can lose access to data permanently if the right steps are not taken to protect it. Some organizations, like law firms, should take special care to ensure that client and case information is not leaked or viewed by unauthorized employees.

What is Data Loss Prevention (DLP)? A Definition

In summary, data loss prevention, or DLP, is a set of policies, practices, and solutions that combine to prevent sensitive data from escaping the organization’s internal data stores. DLP strategies and solutions focus on both protecting data from outside interference and internal threats.

DLP technologies often use rules to discover and classify sensitive data, so that administrators can identify areas of risk. Extra layers of protection can then be applied to those areas. DLP technologies often have methods of automatically detecting anomalous or unwanted behavior and triggering automated responses to shut down threats.

Organizations often adopt data loss prevention solutions because they struggle to manage the sheer volume of internal data natively. Most governments and industries will also have regulations that make adopting a data loss prevention solution a necessity.

Why do Organizations Need DLP?

We all know that data leakage can be damaging to both the reputation and bottom line of any organization. We also know that if we do not have sufficient security measures in place, then a data loss incident is likely.

Even though we are aware of these dangers and data protection has become a hot topic, many of us are still not fully convinced of the need for data loss prevention solutions.

So, here are 9 reasons why data loss prevention solutions are a necessity.

1. You don’t know who’s accessing your most sensitive data

You will not get a 360-degree view of the data location, flow, and usage across your enterprise if you’re relying on native auditing. Once you have a thorough understanding of this data, you can choose what data to protect, set the appropriate policies and define the cost.

You can use third-party, off-the-shelf, solutions to monitor data access. This way you will be better able to protect and control sensitive data.

2. Your company does not have a plan to deal with insider threats

If your company does not have the plan to deal with insider threats, unintentional confidential data disclosure or data leakage by internal employees is a serious threat.

As part of your data loss prevention plan, you must be tracking who logs on to your file servers and protect files that contain sensitive information.

3. You are concerned about the effect data breaches could have on your business

This one probably applies more to C-level executives than anyone else. In recent years, data breaches have been making headlines. Organizations worldwide are concerned about the state of their enterprises because of data breach incidents.

If you can detect breaches early, you can contain the damage of a data leak. Real-time alerts can inform you of data breaches as soon as they happen.

4. You are not sure how you will meet compliance regulations

There are global compliance requirements that require organizations in both the public and private sectors to safeguard sensitive information.

Compliance requirements such as SOX, HIPAA, PCI, GLBA, and others must be met, otherwise heavy penalties can be applied. Many data loss prevention solutions will come with compliance-ready reports built in to speed up this process.

5. You are concerned about the wide adoption of Bring your Own Device (BYOD)

Many organizations allow BYOD (bring your own device) which supports social networking, instant messaging, and other Web 2.0 applications. Data loss prevention programs prevent the exposure of confidential information across these unsecured communication lines.

Mobile phones and tablets are difficult to defend from attackers; they also require regular patch updates. As the security of these devices mainly falls on the shoulders of the user, they are vulnerable to theft, poor maintenance, and personal misuse.

6. You want to protect your confidential data in the cloud

Many enterprises are choosing to move their confidential data to applications to the cloud. You want to secure the points where data enters and leaves your organization. You should be able to prioritize data, recognize sensitive information that is flowing to the cloud and encrypt it to prevent information leaks.

7. You want to improve corporate governance

Data leak prevention capabilities will improve overall corporate governance in general, and information governance in particular. Having a thorough and efficient data leak prevention capability can improve organizational policies and processes, promote compliance, and give way to more comprehensive information governance.

8. You want a competitive advantage

If you can identify sensitive data and protect it from loss or misuse, you are in a better position to compete with others. If you fail to protect confidential data, it can irreparably damage your company’s brand, unnerve your investors, lower share prices, and cause financial losses. If you have a data loss prevention plan, you can protect valuable trade secrets, vital intelligence and prevent data loss that leads to negative publicity.

9. You want to maintain forensic records of security events

A full-fledged data loss prevention solution allows you to capture and archive change events for auditing and forensic analysis. You can take backups of key infrastructure and keep them for data restoration and as evidence for security analysis.

Types of DLP Solutions

The three main types of data loss prevention software include network DLP, endpoint DLP, and cloud DLP and these are explained below:

Network DLP

Network DLP monitors and protects all data in use, whether in use or at rest on the company’s network, and this includes the cloud. The types of data being monitored include e-mail, messaging, and file transfers, to detect when business-critical data is being sent in breach of the organization’s information security policies.

Endpoint DLP

Endpoint DLP monitors all endpoints both on and off the network to prevent data leakage, data loss, or misuse. Endpoints include servers, cloud repositories, computers, laptops, mobile phones, and any other device on which data is used, moved, or saved. Endpoint DLP assists in the classification of regulatory, confidential, proprietary, or business-critical data in order to streamline reporting and compliance requirements.

Cloud DLP

Cloud DLP scans and audits data to automatically detect and encrypt sensitive information before it is admitted to and stored in the cloud. It maintains a list of authorized cloud applications and users that can access sensitive data and alerts the security team to policy violations or anomalous activity. A log is kept of when any confidential, cloud-based data is accessed and who has accessed it.

Main Causes of Data Leakage

Insider Threats

Despite what you might expect, insiders are the most common cause of data breaches. Insider threats take several different forms, from the negligent employee to the malicious disgruntled employee, but the consequences of a data breach are often devastating.

In the case of human error where users unintentionally send confidential information to the wrong people or fall victim to phishing scams, providing education is an essential approach to try and combat this kind of insider threat.

A more malicious insider threat may take the form of a privileged user abusing their access rights by copying files that contain sensitive data – for example, credit card information – to sell it for personal profit.

Weak and Stolen Passwords

This is another form of insider threat but needs its own point on the list because of its importance.
Without stringent password policies that demand complex and regularly rotated passwords, companies are leaving themselves open to external attacks. Opportunists will take advantage of weak or easy-to-guess passwords, or they will steal passwords that are stored in obvious physical or virtual locations.

It is essential to ensure that users are using complex passwords unrelated to themselves and that they are changing these passwords at regular intervals. So, in the event of an attacker managing to get hold of a password, they cannot stay inside the system for a prolonged period of time as the password will change. It is also essential that users do not store their passwords anywhere where they can be stolen. Special attention should be given to privileged accounts, which should have the most stringent password policies applied to them.

Unpatched Applications

When vendors release updated versions of software, the latest version usually contains patches to help stop any vulnerabilities that can be exploited by attackers. Problems can arise when users delay updates or ignore updates altogether. If users do not update their systems and applications as soon as the latest patches are released, they leave themselves open to attackers who have identified the vulnerability.

Malware

Malware is malicious software that attackers attempt to implement on the target system, usually through vulnerabilities in unpatched applications, as mentioned above, or through phishing attacks by targeting users by email with malicious links or attachments. Malware can do things like track typing to skim passwords and sensitive details or will lock down systems and demand ransoms to unlock them.

It is essential to educate your users on how to spot phishing attacks or risky websites and monitor any suspicious changes taking place on your systems to permissions and data.

How DLP Works

A DLP solution makes use of a combination of standard security measures, such as firewalls, endpoint protection tools, monitoring services, and antivirus software. Together with this, there will also be advanced solutions, such as artificial intelligence (AI), machine learning (ML), and automation in place, to prevent data breaches, detect anomalous activity, and provide analysis on suspicious activity for the security team.

In general, DLP technologies provide support for the following cybersecurity activities:

Prevention: Achieved by establishing a real-time review of data streams and immediately limiting suspicious activity or unauthorized users

Detection: The quick identification of anomalous activity through improved data visibility and enhanced data monitoring measures

Response: The streamlining of incident response activities by tracking and reporting data access and movement across the network

Analysis: Put into context any high-risk activity or behavior so that security teams can increase prevention measures or update remediation activities

How Lepide Can Help You Implement Data Loss Prevention

Lepide Data Security Platform is a software solution that helps prevent data loss in organizations by providing a range of tools and features to monitor and protect sensitive data.

Here are some ways in which the platform can help prevent data loss:

  1. Real-time monitoring: The platform provides real-time monitoring of all data activity, including user behavior, file access, and changes to configurations. This enables organizations to identify and respond to potential data breaches as they occur, minimizing the risk of data loss.
  2. User behavior analytics: The platform uses advanced analytics to detect abnormal user behavior that may indicate an insider threat. For example, it can detect when a user is accessing data outside of their normal working hours or attempting to access files they are not authorized to view.
  3. Data Classification: The platform can classify data according to its level of sensitivity and apply appropriate security controls to protect it. For example, it can automatically encrypt highly sensitive data or restrict access to certain users or groups.

If you would like to see how Lepide can help you prevent data loss, come, and take a look at our award-winning Lepide Data Security Platform. Our solution will enable you to locate and classify your sensitive data, monitor access rights, and analyze user behavior to help you spot a data breach before it manifests. Schedule a demo or start a free trial today to see how Lepide can help secure your data.

FAQs

What are the costs associated with implementing a DLP solution?

Implementing a Data Loss Prevention (DLP) solution involves various costs beyond the initial software price. These costs can vary depending on several factors.

One key factor is the pricing model. Most vendors charge per user, typically ranging from $5 to $50 per user per month, with lower costs for larger deployments. Some solutions base their pricing on the volume of data scanned, which might be relevant for organizations with massive datasets.

Additional costs include professional services for setup and configuration, ongoing maintenance and support contracts, and internal resources for managing and monitoring the system. When evaluating costs, consider the total cost of ownership (TCO) over a specific period, encompassing software, services, and internal resources.

To get a more accurate cost estimate, it’s crucial to identify your specific needs, contact vendors for quotes, and consider the TCO compared to the solution’s potential benefits.

How can organizations ensure that their DLP solution is effective?

Ensuring a Data Loss Prevention (DLP) solution’s effectiveness requires a strategic approach. Firstly, clear and well-defined DLP policies are crucial. These policies should outline acceptable data handling practices and prohibited actions, while data classification helps prioritize protection efforts by identifying sensitive information based on its potential impact if breached.

Secondly, a user-centric approach is vital. Gaining management buy-in fosters organization-wide support for the DLP solution. Additionally, comprehensive training and education for employees on policies, data classification, and proper handling techniques empower them to act as a vital security line. Encouraging employees to report suspicious activity further strengthens the system.

Thirdly, continuous monitoring and improvement are essential. Regularly monitoring user activity, data access attempts, and potential breaches through the DLP solution helps identify trends, weaknesses, and areas for improvement. Conducting penetration testing simulates real-world attacks to uncover vulnerabilities, while analyzing DLP logs allows for refining and updating policies based on evolving regulations, business needs, and identified security gaps.

Finally, selecting a DLP solution that aligns with your specific needs and seamlessly integrates with existing security infrastructure is crucial. Regularly updating the solution with the latest patches and security fixes is vital to address evolving threats. Additionally, exploring additional security measures like encryption and access controls alongside DLP can further bolster data protection.

What are some of the challenges associated with implementing a DLP solution?

Implementing a Data Loss Prevention (DLP) solution is not without its challenges. One hurdle lies in the evolving nature of data itself. Modern data formats and techniques like encryption and cloud storage can make it difficult for traditional DLP solutions to consistently detect sensitive information.

Another challenge involves user behavior and intent. DLP systems can struggle to distinguish between malicious and legitimate attempts to move data. Blocking legitimate activities can hinder employee productivity and lead to frustration, while allowing too much freedom can increase the risk of data breaches.

Striking the right balance between robust security and user experience is crucial. Overly restrictive DLP policies might lead to workarounds and decreased adoption, while lax policies might leave sensitive data vulnerable.

Furthermore, integrating DLP solutions with existing security infrastructure can be complex, especially for large organizations with diverse systems. Additionally, scaling the DLP solution to accommodate future growth and changing data volumes can be challenging.

Finally, maintaining the effectiveness of a DLP solution requires ongoing management and maintenance. This includes updating policies, monitoring logs, and addressing evolving security threats.

Philip Robinson
Philip Robinson

Phil joined Lepide in 2016 after spending most of his career in B2B marketing roles for global organizations. Over the years, Phil has strived to create a brand that is consistent, fun and in keeping with what it’s like to do business with Lepide. Phil leads a large team of marketing professionals that share a common goal; to make Lepide a dominant force in the industry.

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