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Data Loss Prevention (DLP)

Data Loss Prevention (DLP) refers to a set of tools and strategies that all serve a common purpose: to detect, prevent, and handle the loss, misuse, and unauthorized access of sensitive data.

These tools are critical for organizations across all industries because they help protect intellectual property (IP) and personally identifiable information (PII), and ensure compliance with various regulatory bodies like HIPAA and GDPR.

Without DLP, data theft is a very real risk and can have serious repercussions for businesses.

Why is Data Loss Prevention Important?

Modern organizations increasingly rely on digital data. However, this dependence comes with an increased risk. 

Taking DLP seriously protects the organization in a multitude of ways:

  • Data breaches, theft, and leaks: A DLP system will block unauthorized data access and sharing, preventing breaches before they occur.
  • Regulatory compliance: Frameworks like GDPR, HIPAA, and PCI DSS are non-negotiable. DLP ensures compliance at every stage.
  • Insider threats: A surprising amount of data loss comes from the inside. Whether it's employee negligence or a malicious act, DLP stops it in its tracks.
  • Reputational damage: Organizations that suffer data loss take a serious hit to their reputation. Never mind the financial penalties that come with being found negligent.

By addressing these challenges, DLP empowers businesses to operate securely, fostering confidence among clients, employees, and partners.

How Does DLP Work?

DLP consists of a mix of tools and policies. It even includes behavior analysis and pattern recognition to detect anomalies and monitor how data is accessed and shared.

However, all of these components share some key mechanisms, including:

  • Data classification: DLP tools identify and classify sensitive data by continuously scanning it. This includes on-premises and cloud-based environments.
  • Monitoring and analysis: The tools monitor data when it is at rest, in transit, and while in use. Access risk and data sensitivity are analyzed through keyword matching, pattern recognition, and the use of AI.
  • Policy enforcement: Each organization defines its own DLP policies that determine which data is sensitive and its handling protocols. The policies also state what type of data use should be allowed or blocked and what action will be taken.
  • Incident response: If a violation is detected, DLP triggers certain actions. This can be anything from blocking the transfer, data encryption, and sending alerts to simply logging the event for audit purposes.

Let’s expand more on the type of data that DLP monitors. Three data states must be protected:

  • Data at rest: This refers to data stored on databases, servers, cloud storage, or any endpoints. DLP protects it by using access restrictions and encryption.
  • Data in transit: Any data moving between networks is constantly monitored for leaks and unauthorized transfers. DLP can encrypt or block the data as it is in motion. 
  • Data in use: Data being actively processed or accessed is protected by scanning user actions, and DLP can apply access controls where needed (blocking printing or copying, for example).

Common Types of Data Loss Prevention Solutions

There are three main types of DLP solutions available:

  • Network DLP: This monitors network traffic and provides visibility into sensitive data movement. Any access is logged, and unauthorized transmissions are blocked.
  • Endpoint DLP: This monitors all endpoints (laptops, mobile phones, etc.). User actions are tracked to prevent leaks or theft, and user controls are applied as needed.
  • Cloud DLP: This monitors SaaS applications and cloud storage. Data is scanned, classified, and encrypted while user controls are applied when necessary.

Key Benefits of Implementing DLP

The benefits of implementing DLP are numerous and cannot be underestimated:

First, data visibility provides key insights into how the data flows and how it is used across the organization. 

Through constant monitoring, the risk of data breaches and leaks is significantly reduced. Plus, the proactive detection and response mechanisms can prevent problems in real time.

All of this ensures that sensitive data is fully protected from insider and external threats.

DLP also helps organizations comply fully with data protection laws and regulations. The stringent standards of GDPR, HIPAA, and SOX are easily met with a robust DLP solution in place.

Finally, when an organization takes DLP seriously, it saves money. Breach recovery, regulatory fines, and legal action are all avoided if data is kept safe. Plus, its reputation and reliability are kept intact, preventing loss of business.

Common Data Threats DLP Addresses

Unfortunately, there are many threats to an organization's data, and not all of them are obvious.

The most common threats are malicious. Cyberattacks, including malware, phishing, and ransomware, are a constant battle and must be continuously guarded against.

Then, there are the insider threats. While some are malicious, many are simply negligent. For instance, an employee leaving a laptop unlocked or a contractor writing a password down and leaving it exposed.

Unintentional exposure happens, too. Sensitive data can easily be sent to the wrong recipient or fail to be encrypted when in transit.

Best Practices for DLP Implementation

Implementing a DLP platform isn’t just about choosing the right technology for the job. Organizations must take a holistic approach to securing their data:

  1. First, all data must be correctly identified and classified. Start by performing regular audits to understand how data flows within the organization. Then, classify it according to sensitivity and regulatory requirements.
  2. Next, define who is accountable for data security and at what level.
  3. Develop clear policies that define how sensitive data is accessed, used, and stored.
  4. Implement machine learning and behavioral analytics to monitor, detect, and prevent risks.
  5. Provide comprehensive training to all staff on security protocols, compliance, and how to be vigilant. Training should be ongoing with regular refresher sessions.
  6. Finally, conduct regular security audits to maintain compliance and detect vulnerabilities. As the landscape evolves, policies must be updated to reflect any changes.

How to Choose the Right DLP Solution

Choosing the right DLP solution starts by carefully assessing your organization’s needs. Key areas of focus should be:

  • IP protection
  • Regulatory compliance
  • Data visibility

At this point, involve business stakeholders since they can assist you in ensuring that all operational and business needs are covered.

Once you understand the needs, evaluate the available deployment options. You can choose from endpoint, network, or cloud DLP. Another option is to go for a hybrid solution that includes all three types of deployment.

Then, evaluate the capabilities of the DLP solution. Core functions should include:

  • Data discovery and classification
  • Flexible policy controls
  • Cross-system and platform coverage (supports all business operating systems and endpoints)
  • Comprehensive analytics and reporting
  • Smooth integration with your existing tech stack
  • Scalability in line with business growth
  • Ease of use
  • Regular updates 
  • Strong support and full onboarding

When comparing solutions, create a checklist of your requirements and see how each solution matches up against it. This will allow you to understand which one is most suited for your needs.

Frequently Asked Questions

What types of data does DLP protect?

DLP protects a wide range of sensitive data while it is at rest, in transit, and in use. The data types include:

  • Personally identifiable information (PII)
  • Intellectual property (IP)
  • Financial data
  • Trade secrets
  • Other forms of business-critical information

What are the main types of DLP solutions?

The three main types of DLP solutions are:

  • Network DLP
  • Endpoint DLP
  • Cloud DLP

The DLP can also consist of a hybrid of two or more of the above solutions.

How does DLP support compliance?

DLP supports compliance by enabling organizations to monitor, classify, and report data in line with regulatory standards. This includes regulatory bodies such as GDPR, HIPAA, PCI DSS, and SOX.

What is the difference between data loss and data leakage prevention?

Data loss prevention refers to protection measures that stop the unintentional destruction or disappearance of data. Data leakage prevention helps stop the unauthorized exposure or sharing of sensitive data.

Can DLP prevent insider threats?

Yes, DLP prevents insider threats by continuously monitoring user activity. If a potential threat is detected, it is flagged, and user access and control are restricted in real time.

Secure Your Data with the Right DLP Solution

If you are searching for a DLP, consider CYERA. Our comprehensive solution leverages AI to detect data breaches and reduces false positives by up to 95%.

To understand more, we invite you to view a demo or get in touch for more information. You can also check out our full DLP brief and how it addresses common data problems.

And, if you’d like to understand how CYERA DLP has benefited other organizations, here’s a customer spotlight testimonial from Cyber Security.