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Microsoft Security

What is a data leak?

Data leaks occur when confidential information is exposed to unauthorized parties.

Data leak defined


A data leak is an unauthorized disclosure of sensitive, confidential, or personal information from an organization’s systems or networks to an external party. Data leaks can be intentional or accidental and can have serious consequences for the organizations and individuals affected.

Key takeaways

  • A data leak is an unauthorized disclosure of confidential information from an organization’s systems or networks to an external party.
  • Most data leaks are caused by human error. An employee may save data in an unsecured location, accidentally share data with an outside party, or fall victim to a phishing attack.
  • A data leak can lead to a competitive disadvantage, legal repercussions, and a tarnished brand image.
  • A robust data leak response plan helps effectively manage and mitigate the impact of a data leak.

The differences between data leaks and data breaches


The terms data leak and data breach are often confused with each other. But the two are not the same. A data leak is usually an accident and happens when an internal source exposes information to an external party. A data breach, on the other hand, is often intentional and takes place when an external party accesses an unauthorized network to gain access to or exfiltrate sensitive information, which can result in a data leak.

When you experience a data leak, act quickly to identify the source of the leak, understand the extent of the leak, and notify the existing parties. With a data breach, it’s important to isolate the compromised system, investigate the extent of the breach, and report the incident to authorities.

In both cases, you should also take steps to prevent future incidents by improving your data security practices and policies.

Common causes of data leaks

Human error

This is the most common reason for a data leak. An employee may save data in an unsecured location, accidentally share data with an outside party, or fall victim to a phishing or social engineering attack.

Malware and hacking

Malware including viruses and spyware may be used to access data or compromise devices. Heavy traffic from a Distributed Denial of Service (DDoS) attack may cause systems to act unpredictably, potentially exposing vulnerabilities.

Insider risks and threats

Insider risk occurs when someone who has been given access to company resources maliciously or inadvertently put sensitive data at risk of data leak, data sabotage, or data theft.

Third-party breaches

Data may be leaked when third-party companies that have access to a business’s data suffer a breach.

Phishing and social engineering

Attackers may trick employees into revealing sensitive information through phishing attacks on deceptive emails or websites.

Cloud data leaks

Data stored in the cloud may be accessed by unauthorized users if the cloud service is not properly secured.

Physical data leaks

An employee may leave a laptop in a public place, or a thief may steal a hard drive from an office, allowing unauthorized access to the sensitive data by anyone who finds or obtains it.

Poor password policies

Short, common, system default, or rapidly-guessed passwords can make it easy for hackers to steal credentials and access sensitive data or systems without password protection policies in place.

Inadequate authentication and permissions management

Authentication and permissions may not be properly managed, allowing users to gain access to data they should not be able to see. Weak login security can also allow unauthorized users to gain access to sensitive data.

Data leaks in the past decade


Data leaks can occur in any organization regardless of their size or data security and risk management practices. Here are some of the biggest data leaks that have occurred in the past decade:

In 2017, an American credit bureau was hacked via a consumer complaint portal, which led to the private records of 147.9 million Americans, 15.2 million British citizens, and around 19,000 Canadian citizens being leaked. In the aftermath, a USD425 million settlement was reached to help people affected by the data breach.

In 2013, cybercriminals accessed a large US retail company’s gateway server through credentials stolen from a third-party vendor, resulting in a data leak of 40 million credit and debit card account numbers, along with 70 million customer records. Following the breach, the retail company was required to adopt advanced measures to secure customer information. In total, the estimated damages cost them USD202 million.

In 2014, North Korean cyberattackers used malware to gain access and leak more than 100 terabytes of data from a multinational entertainment studio. The data included employees’ personal information, emails, salaries, copies of then-unreleased films, and other information. They suffered a significant impact to their reputation and revenue and agreed to pay USD8 million to compensate for employees’ personal data that was lost.

In November 2021, a disgruntled former employee at a medical center in Geogia downloaded private data from the medical center’s systems to a personal USB drive with the intent to leak it. This resulted in patients’ test results, names, and birthdays being leaked. The medical center had to provide all patients who suffered from the data leak with identity restoration and credit monitoring services.

The threats posed by data leaks


Data leaks pose a significant threat to data security, revealing confidential information, like personal identifiable information (PII), intellectual property, and trade secrets to the public and potentially, competitors. This exposure can lead to a competitive disadvantage, legal repercussions, and a tarnished brand image. Data leaks can serve as a wake-up call for organizations to reassess their data security strategies and invest in more robust data protection measures.

Compliance professionals play a crucial role in preventing data leaks. They are responsible for establishing data security policies and procedures, detecting and reporting data leaks, ensuring employee training, and planning incident response. Their work is vital in maintaining an organization’s compliance with data protection laws and preventing data leaks.

A data leak can cause significant reputational damage, impacting an organization’s ability to attract new customers, future investors, and prospective employees. The repercussions of a data leak can be far-reaching, affecting not only the immediate financial situation but also the long-term viability of the organization.

Losing intellectual property (IP) to cybercriminals or malicious insiders can be devastating. IP constitutes a significant portion of a company’s value, and its theft poses a significant risk to the company’s innovation, competitiveness, and growth. With access gained from a data leak, hackers may use ransomware to destroy or block access to critical data and systems until a ransom is paid.

Operational disruptions caused by data leaks can also lead to significant losses. A non-functional website may drive potential customers to competitors. Any IT system downtime can lead to work disruptions, necessitating taking systems offline to conduct a thorough investigation into the breach and what systems were accessed.

Steps to take if a data leak occurs


Data leaks are a significant concern for businesses, no matter the size. They can lead to financial losses, reputational damage, and regulatory penalties. However, with a robust data leak response plan, you can effectively manage and mitigate the impact of a data leak. Here are the steps you should take if a data leak occurs:

Detect and validate

Gather as much information as possible about the data leak and its impact. Identify the source and scope of the incident and determine the type and amount of data that has been compromised.

Contain

Isolate and secure the affected systems, devices, and data to prevent further data loss or unauthorized use or access. Implement security measures and controls to stop the data leak and minimize the damage.

Communicate internally

Analyze the root cause and the consequences of the incident. Identify the vulnerabilities and gaps in your security policies and practices that led to the data leak.

Assess and investigate

Attackers may trick employees into revealing sensitive information through deceptive emails or websites.

Cloud data leaks

Data stored in the cloud may be accessed by unauthorized users if the cloud service is not properly secured.

Comply with laws and regulations

Follow the rules and regulations set by governing bodies to fulfill their legal obligations and responsibilities. Report the data leak to the relevant authorities, taking the necessary actions to avoid or reduce legal and regulatory risks.

Notify the affected

Inform the individuals or parties whose data has been leaked. Provide them with the necessary information and assistance to protect your organization and minimize any damage to their confidence and loyalty.

Recover and remediate

Secure and restore the data lost or damaged by the leak. Implement measures to prevent and mitigate potential future harm from misuse of the data.

Manage PR and reputation

Manage the public relations and reputation fallout of the data leak. Communicate transparently about the incident, taking responsibility, and outline the steps taken to prevent future occurrences.

Following these steps will help you effectively handle a data leak, minimize its impact, and ensure the ongoing trust of your customers and stakeholders.

Strategies for preventing data leaks

Employee training and awareness

Ensures that employees are aware of the different kinds of threats that can lead to a data leak and are familiar with the organization’s data leak policies. Regular refresher sessions and guidance when specific issues arise can help reinforce this training.

Network detection and intrusion detection

Uses AI and automation to quickly and effectively spot threats. Ongoing detection and testing can identify potential risk areas and alert the organization to potential data and security issues before they can cause damage.

Third-party risk management

Data leaks can often be traced to third parties that have too much access to an organization’s network and data. Tools for third-party risk management monitor and limit how third parties, such as suppliers, partners, or service providers, access and use data.

Data security technologies and tools

Data loss prevention (DLP) tools help prevent the sharing, transfer, or use of sensitive data by detecting misuse of sensitive information across the data estate. Insider risk management solutions provide comprehensive visibility into user activities, helping organizations identify and mitigate potential threats from within.

Endpoint security solutions

Monitors mobile devices, desktop computers, virtual machines, embedded devices, and servers to safeguard against threat actors who seek out vulnerabilities or human error and take advantage of security weaknesses.

Security Information and Event Management (SIEM) systems

SIEM provides security teams a central place to collect, aggregate, and analyze volumes of data across an enterprise, effectively streamlining security workflows. They also deliver operational capabilities such as compliance reporting, incident management, and dashboards that prioritize threat activity.

Protect your data from data leaks


Data leak prevention is an important aspect of an organization’s growth strategy. It ensures that valuable data, which is often a company’s most significant asset, remains secure and confidential. It’s important to build a strong foundation to secure your data.

Use DLP tools and processes to ensure that sensitive data is not lost, misused, or accessed by unauthorized users. DLP software classifies regulated, confidential, and business-critical data and identifies violations of policies.

Prioritize information security to prevent unauthorized access, use, disclosure, disruption, modification, inspection, recording, or destruction of information. It ensures the confidentiality, integrity, and availability of data. Employ risk management tools to detect, investigate, and take action on risky activities in your organization.

Apply AI-powered data-loss prevention tools to continuously monitor and analyze data activity and detect unusual patterns or behaviors—enabling proactive responses to potential threats.

Together, these four pillars create a strong foundation for data leak prevention. They ensure that data is handled responsibly, securely, and in compliance with all relevant regulations. Organizations that can demonstrate effective data leak prevention strategies are viewed as more trustworthy and reliable, which can lead to increased business opportunities and growth. In other words, data leak prevention is not just about avoiding negative consequences, but a proactive strategy for business success.

Tools for preventing data leaks


Preventing data leaks can be difficult—it can feel never-ending. Quickly identifying gaps in security and prioritizing resources to investigate and mitigate them is crucial to reducing the impact of potential leaks and breaches. Fortunately, many cybersecurity tools that prevent external threats can also identify insider risks.

Gain insights into data, detect critical insider risks that may lead to potential data security incidents, and prevent data leaks effectively with information protection, insider risk management, and DLP capabilities of Microsoft Purview.

Manage organizational access and receive alerts if there is suspicious sign-in and access activity with Microsoft Entra ID.

Secure your clouds, apps, endpoints, and email from unauthorized activities with Microsoft Defender 365.

By adopting these tools and using expert guidance, organizations can better manage data leaks to protect their critical assets.
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Frequently asked questions

  • Data leaks are serious issues that can lead to significant financial losses, reputational damage, and legal implications for both individuals and organizations. They can also result in identity theft and fraud for individuals, and competitive disadvantages for companies whose competitors have accessed their proprietary information.
  • Human error—an employee at a large corporation accidentally sends an email containing sensitive customer information to the wrong recipient, unintentionally exposing confidential data to an outside party.
  • Data leaks can be detected by scanning resources that commonly host data leak dumps, using open-source intelligence and threat intelligence techniques. Companies can also use data leak detection solutions to discover, detect misuse, and protect sensitive data from accidental or intentional exposure.
  • Cybercriminals exploit data leaks, using the exposed data to plan and commit cyberattacks. They often use personally identifiable information that’s been exposed for identity theft, financial fraud, and even corporate espionage.

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