Data leakage is the unauthorized disclosure of sensitive or confidential information from within an organization to someone outside. It can happen intentionally or by accident.
Unlike data breaches, caused by deliberate attacks from outside, data leakage can result from mistakes, security lapses, or sabotage by people inside the organization.
The impacts can be severe. For example:
- Financial losses: Investigating and mitigating an incident costs money. You may also lose revenue, be fined by regulators, or face legal action by customers or partners.
- Operational disruption: Dealing with a data leak will be stressful and time-consuming, sap resources and focus from your core business.
- Reputational damage: Trust can take years to build up and moments to break down. Losing the trust of your customers, partners, and stakeholders can harm your brand, reputation, and market position in the long term.
- Loss of intellectual property: Leaked knowledge or trade secrets can end up in the hands of your rivals, weakening your competitive edge.
- Regulatory sanctions: Failing to comply with data privacy regulations such as GDPR can lead to fines or other penalties.
How data leakage occurs
Data leakage can occur in various ways, including:
- Human error. For example, a team member accidentally sends a confidential document to the wrong recipient.
- Lax security. For example, employees may be unaware of risks or may not follow best practices for keeping information safe.
- Sabotage by someone inside the organization, such as an angry or disgruntled employee.
- Third-party vulnerabilities. These can include third-party software or APIs or the security practices at suppliers or partner organizations.
- Lost or misplaced documents, files, or devices. For example, a team member throws away a confidential document without shredding it first or leaves their company laptop on the train.
How to prevent data leakage in your organization
Educate your employees
Human error is a significant cause of data leakage incidents. Therefore, it’s critical to educate and train your employees so they understand the risks and know how to keep information safe.
Strive to create an environment where everyone sees information security as their responsibility.
Control access to sensitive information
Review and classify your data according to its sensitivity. Only allow your employees access to the data and systems they need to do their jobs. Don’t allow everybody free access to everything.
Keep your IT systems updated and secure
Check your technology infrastructure regularly for vulnerabilities. If necessary, engage a third-party provider to perform penetration testing. Also:
- Always use the most recent versions of software and apps and install updates and patches when available.
- Enable multifactor authentication to reduce the risk of identity theft.
- Deploy mobile device management tools so you can wipe any devices that get lost or stolen.
Do your due diligence on third-parties
Check that your critical suppliers and partners are also following best security practices. Remember, a chain is only as strong as its weakest link.
Information security is vital for your organization
Raising awareness, promoting best practices, and creating a solid information security culture can help your organization avoid a damaging data leakage incident.
