What is Data Leak and How Can Data Leaks Be Prevented?

What Is Data Leak?

“Data leakage” refers to the unauthorized sharing of private or sensitive information with people or groups who should not have access to it. This can happen with different types of data that companies handle, such as financial information (like credit card numbers and invoices), personal information (like names and addresses), health information (like medical diagnoses and test results), intellectual property (like patents and trade secrets), business data (like customer lists and meeting recordings), and activity data (like browsing history and usage details).

Data leakage can occur in various situations, including when data is being transmitted (like in emails or API calls), when data is being stored (like in cloud storage or file archives), or when data is being used (like in screenshots or PDFs). To effectively prevent data leakage, companies need to be aware of the different types of data and situations in which leaks can occur.

What is The Difference Between a Data Leak and a Data Breach?

Data leak and data breach are two terms that are often used interchangeably, but they actually have distinct differences. A data leak occurs when sensitive data is accidentally exposed to someone who was not intended to receive it. This can happen physically, such as leaving a confidential document on a desk where someone else can see it, or digitally, such as sending an email to the wrong recipient. On the other hand, a data breach is a deliberate cyber attack by external actors who infiltrate a system to steal sensitive data.

While both data leaks and data breaches can result in sensitive data being compromised, the intent behind the exposure is different. Data leaks are usually caused by organizational mistakes or accidents, whereas data breaches are premeditated and intentional. It’s important to note that not every data leak leads to a data breach, but both incidents can have serious consequences, including lawsuits, penalties, and damage to a business’s reputation. Therefore, it’s important for organizations to take measures to prevent both data leaks and data breaches in order to protect sensitive data.

Why is Data Leakage Prevention Important?

Data leakage prevention has become a crucial element of modern security strategies as cyber-attacks become more frequent and their impact becomes more severe. A data leak can result in financial losses and trigger federal investigations, which can have long-lasting consequences such as damage to an organization’s reputation, loss of customer trust, and diminished employee morale.

With cybercrime damages projected to reach $10.5 trillion annually by 2025[1], organizations must take a comprehensive approach to protect their assets from potential threats and implement data leakage prevention methods. In other words, it’s critical for organizations to take steps to prevent data leakage because the costs of dealing with a data leak can be significant, and the damage to a company’s reputation can be difficult to repair. By implementing data leakage prevention strategies, organizations can better safeguard their sensitive information and avoid the serious consequences that can result from a data leak.

What are the Causes of Data Leakages?

Data leakages can occur due to various reasons, including accidental leaks, malicious insiders, IT misconfiguration, malicious outsiders, and physical actions.

Accidental leaks

These are the most common type and happen when employees or trusted individuals unknowingly share sensitive information with unauthorized users. This can occur due to several factors, such as sending emails to the wrong recipient or leaving documents in publicly accessible places.

Malicious insiders

They are employees or trusted third parties who abuse their access to steal data. They might be motivated by financial gain, revenge, or cooperation with outside attackers.

IT misconfiguration

It refers to errors that occur during the setup and maintenance of IT systems, leading to vulnerabilities and security risks. This can result in sensitive information being unintentionally exposed to unauthorized parties.

Malicious outsiders

Malicious outsiders use various methods to access sensitive information or systems, such as exploiting vulnerabilities or performing brute force attacks. They might also use social engineering tactics to manipulate individuals into revealing confidential information.

Physical actions

It includes such as stealing paperwork, laptops, phones, or storage devices that contain critical data can also lead to data leakages.

Data Leakage Prevention

Useful use cases can help organizations to prevent data leaks. Here are some simplified explanations for each point;

Develop better security standards

Organizations should regularly update their security standards to protect against internal and external threats. This involves using firewalls, intrusion detection systems, and other advanced security technologies. Identifying potential vulnerabilities in systems and keeping all software and hardware up-to-date with the latest security patches is also crucial to prevent data leaks. Regular risk assessments can help identify potential threats, vulnerabilities, and risks, which can help prioritize security efforts.

Educate employees about data security

Employees are often the most vulnerable link in an organization’s security mechanism. Organizations can offer regular training sessions, workshops, and seminars to help employees understand the importance of safeguarding company data and their role in maintaining data security. Employers can create a security culture by setting expectations for data protection, encouraging employees to report suspicious activity, and regularly reminding employees of security policies and procedures.

Implement stronger penalties for data leakages

There need to be consequences for data leakages, whether they are caused by negligence or malicious intent. These penalties will help deter future incidents and ensure that individuals and organizations take data security seriously.

Use data loss prevention solution

Data loss prevention solutions can help businesses monitor the data accessed and shared by end-users, which is one of the most effective ways to improve information security and protect business information from data leaks.

Encrypt sensitive data

Encryption is the process of encoding data so that only authorized parties can read it. This is essential for sensitive data such as financial information, personal health records, and confidential business documents.

Use strong password policy

Implementing a strong password policy is essential in preventing data leaks. This includes encouraging employees to use complex passwords, changing passwords regularly, implementing multi-factor authentication, and not allowing employees to share their passwords.

Implement digital risk protection software

Digital Risk Protection Software helps organizations mitigate the risks related to their digital assets, such as online accounts, websites, and social media accounts, by providing threat intelligence, real-time monitoring, and alerting.

Limit access to sensitive data

Limiting access to sensitive data is a simple but effective way to reduce the risk of data leaks. Only individuals who need access to the data to perform their tasks should be granted permission, and businesses can implement a Role-Based Access Control (RBAC) system to restrict further access based on an individual’s job responsibilities and level of clearance.

In summary, companies should adopt a comprehensive approach to prevent data leaks involving security standards, employee education, penalties for data leakages, data loss prevention solutions, encryption, strong password policies, digital risk protection software, and limiting access to sensitive data. These measures can help organizations reduce their risk of exposure to data leaks.

References:

[1] https://cybersecurityventures.com/cybercrime-damage-costs-10-trillion-by-2025/