What is data loss prevention (DLP)? What are the penalties for data leaks?

Every company collects customer and contractor data in some way. Most often, this data concerns production or sales processes. All this information is valuable, and its loss has negative consequences. Therefore, data protection and appropriate information protection systems are the greatest challenges for every business.

In this article, we will discuss data security methods and explain how to protect confidential data within a company to avoid concerns about information leaks, the disclosure of which could expose the organization to serious problems. What is data loss prevention (DLP)? What are the benefits of implementing DLP?

What is DLP?

DLP systems are software used to secure confidential data. DLP monitors data and, using advanced algorithms, enables its protection in the event of a threat. If an attempt is made to copy or send data, the DLP system activates write blocking, blocks sending, and sends a warning to the administrator about the irregularity.

Data loss prevention is primarily used to protect against intentional acts of harm, but also against accidental information leaks (data leaks), which can be the result of, for example, carelessness in organizations processing data.

Data loss prevention is a general term for information technologies that control the flow of information within a company. DLP systems operate similarly to antivirus software, and, similarly to intrusion detection systems, they also detect sensitive data in network traffic.

Additionally, DLP controls the transmission of sensitive data over the network or its storage on external media. This is one of the most important elements of a security policy, both in terms of protecting confidential information and building an organization's cybersecurity maturity.

Who should consider data loss prevention systems?

Data protection should be a priority for every company, regardless of size or industry. DLP systems protect data at both the workstation and network levels. They also allow for control over all internet channels, such as LANs, WANs, websites, email, and instant messaging.

IT security is also crucial in the context of legal compliance. Ensuring the protection of confidential information is a requirement imposed by the EU General Data Protection Regulation (GDPR). Therefore, all organizations with access to confidential, sensitive data, and important documents should utilize a DLP system.

How does a data leak occur in a company?

A leak can occur both in a local system and through external actors. Insider attacks often occur in small businesses, where files containing key information are sent electronically – via email, copied to flash drives or mobile devices, or even transmitted via instant messaging. The most common channels for information leaks include external media, email, USB drives, instant messaging devices, and external network drives.

While it is commonly assumed that leaks of personal data provided by customers or contractors are the work of hackers, most incidents involving breaches of a company's digital security are the work of employees themselves.

Of course, hacker attacks are just as real as the threat posed by negligent or careless employees who, for example, neglect regular software updates. Unfortunately, a limited DLP budget is often a factor in cybersecurity omissions.

What are the penalties for personal information leaks?

A company's information leak can have very serious consequences. The loss of sensitive data often leads to financial losses, property and non-property damage, reputational damage, and economic and social harm. Therefore, the damage can be felt by customers, business partners, employees, and the entire company.

The above-mentioned consequences of data loss and reputational damage are not the only ones. If proven guilty of a data leak, the data controller also faces imprisonment. Sharing data with unauthorized persons, in accordance with the Personal Data Protection Act of August 29, 1997, is punishable by a fine, restriction of liberty, or imprisonment for up to two years.

The fine can reach up to PLN 200,000. Furthermore, the current penalties may be even more severe due to the GDPR, which not only increases the amount of fines but also defines the timing of their imposition. The regulation allows the supervisory authority to impose a fine immediately after a breach is detected.

How to protect your company from data loss?

The obligation to protect sensitive data stems from, among other things, the GDPR, and processing data in violation of regulations or improperly sharing it can result in severe penalties. Therefore, data protection should be a top priority for every company. Today, specialized DLP systems are available on the market that comprehensively support the protection of electronic data against leaks and theft.

It's also worth implementing certain data protection best practices, such as different levels of data access for employees, appropriate training in information security, and regular updates to company software operating systems. It's also worth blocking the ability to save data on external media, and implementing encryption and decryption of sensitive documents stored on company computers and in the cloud.

Training is also crucial. Cybersecurity training, anti-phishing training, and data protection training are essential elements of a company's data security policy.

Implementing DLP Systems in Your Company

DLP systems are designed to monitor stored data and simultaneously collect information about irregularities that compromise the company's IT security. If such irregularities are detected, DLP software alerts administrators, who can take action to protect the data. In this case, the network administrator cuts off the compromised device's access to the company network, while the Windows or Linux administrator blocks access to company data stored on local servers or in the cloud.

The first stage of implementing a DLP system is an IT audit and a security audit. It is necessary to determine what company data should be protected and how it should be protected.

If you want to:

·      monitor the activities of users with access to critical data in real time;

·      effectively identify documents whose disclosure to inappropriate individuals could result in data loss and penalties;

·      detect attempts to obtain confidential data;

·      block data theft attempts, for example, by blocking user access.

A DLP system is the best solution for you. Immediate implementation ensures full transparency and control over your data. Contact us to ensure your company's IT security.

Also, check out our cybersecurity training.

Request a quote. We provide IT support for businesses through IT outsourcing. We have over twenty years of experience in data protection, utilizing cloud solutions such as private clouds and dedicated cloud servers.

We support clients worldwide by offering 24/7 IT helpdesk support. Our services include network administration (LAN/WAN), network and critical device monitoring, Windows server administration, and Linux server administration. We also manage IT projects and services for businesses.