Data Leakage Demystified: Risks and Mitigation Strategies

Data leakage is one of the most pressing cyberthreats facing businesses today. This refers to the unauthorized exposure of sensitive information, whether through employee error, system misconfigurations or targeted attacks. Regardless of the root cause of the issue, the consequences can be severe.

While the term can include deliberate data breaches caused by cyberattacks, it also covers leaks from accidental causes and exposure via vulnerabilities that often go undetected. The result of data leakage – accidental or deliberate – is that this private information ends up accessible to individuals without authorization.

This can have both financial and reputational consequences and it’s a growing problem in a world where more personal data than ever is shared online and stored digitally. For example, in 2024, major incidents included the exposure of data belonging to more than 560 million users of Ticketmaster and the loss of over 190 million people’s records in the Change Healthcare hack.

These illustrate that when data leakage strikes, it can hit big. Therefore, in a digital-first, hybrid-working world where data is constantly on the move, businesses must understand the risks and mitigation of data leakage.

The first step in effective data protection management is to understand how data leakage happens. This matters because not all leaks are alike. Whether caused by insider error, poor cloud configuration or targeted cyberattacks, each type of data leakage poses its own risks and demands a tailored response.

Recognizing the root cause is essential in choosing the right defense strategy. Here are five of the most common types of incidents and what you need to do to protect against them.

Insider threats occur when individuals within an organization intentionally or unintentionally expose sensitive data. This may be employees, contractors or partners and can be the result of malicious actions, like stealing customer information for personal gain, or simple negligence, such as emailing confidential files to the wrong person.

Because these people already have access to internal systems and data, they can bypass many perimeter defenses. This makes insider threats particularly dangerous and difficult to detect. In some cases, ex-employees with lingering permissions can still access systems long after leaving the business, creating long-term vulnerabilities.

To reduce the risk, firms should implement strict access controls that limit data access based on role and necessity – known as the principle of least privilege. Regular audits of user permissions also help ensure that only the right people have access to sensitive information. This is also important in removing any outdated accounts, if individuals have changed roles or left the business.

Phishing attacks are a leading cause of data leakage. These rely on deception to trick users into revealing sensitive information. These attacks typically arrive via email, posing as trusted contacts or organizations to lure recipients into clicking malicious links, downloading infected files or sharing login credentials.

Once access is gained, attackers can exfiltrate data directly or use the compromised account to launch broader attacks within the organization. Because phishing preys on human error, even well-secured networks can be vulnerable if employees are not properly trained.

What’s more, many employees overestimate their ability to spot these attacks. Indeed, one survey by KnowBe4 found 86 percent of employees were confident they could identify email phishing. However, the reality tells a different story, as almost a quarter of employees (24 percent) have fallen for such a cyberattack.

To mitigate phishing risks, businesses should:

• Deploy email filtering solutions to block suspicious messages
• Conduct regular phishing simulations to test and improve employee response
• Educate staff on red flags, such as unexpected requests, urgent language or unfamiliar URLs

Cloud storage is another frequent cause of data leakage, as improperly secured environments can expose sensitive information. Common issues include publicly accessible buckets, overly broad permissions and weak authentication settings. These missteps can leave valuable data open to anyone with the right URL, including cybercriminals.

Organizations are increasingly reliant on cloud platforms to store and share information. It’s estimated that 94 percent of companies worldwide use cloud computing in some capacity. What’s more, nearly half of data stored on these platforms (47 percent) is classed as sensitive.

Cloud misconfigurations are often the result of rushed deployments, lack of oversight or unfamiliarity with provider-specific settings. Once exposed, data can be discovered through automated scanning tools commonly used by threat actors.

Mitigation strategies for reducing these risks include:

• Regularly auditing cloud configurations to identify and close security gaps
• Using automated tools to detect and alert on misconfigurations in real-time
• Enforcing consistent cloud security policies across teams and platforms

Many businesses today rely on third-party vendors to provide technology or as part of their supply chain. However, this can often be a weak link, especially when those vendors have access to internal systems, networks or sensitive information. A single weak link in the supply chain can open the door to unauthorized access or accidental exposure, with potentially severe consequences for the primary organization.

These risks are often overlooked, particularly when working with trusted or long-standing partners. However, if a vendor’s security practices are lacking or their systems are compromised, your data could still be at risk, regardless of your own internal safeguards. For example, one of the largest data breaches of recent years was the MOVEit breach of 2023, which was able to infect thousands of businesses by targeting a trusted technology provider.

Vendor relationships should never be treated as set-and-forget. Ongoing oversight is essential to maintaining a secure and compliant data environment. To reduce exposure to these dangers, key strategies include:

• Conducting thorough vendor assessments, including security audits and risk evaluations
• Including clear data protection requirements in contracts and service agreements
• Continuously monitoring and reviewing third-party access to systems and data

Modern businesses rely on a wide range of endpoint devices including laptops, smartphones, tablets, USB drives and Internet of Things (IoT) hardware. While these tools enable flexibility and remote working, they also expand the attack surface and create numerous opportunities for data leakage.

Endpoints frequently operate outside the traditional network perimeter – often employee-owned and lacking the robust security protections of IT-sanctioned hardware. They may also connect via unsecured Wi-Fi or use outdated software.

Securing endpoints is critical to maintaining visibility and control in an increasingly mobile and distributed business environment.

As well as being more vulnerable to hackers, a lost device or unmonitored connection can quickly lead to unauthorized access or data exfiltration, especially if no safeguards are in place. Therefore, contingencies for these items must form a key part of a disaster recovery plan.

Key ways to protect endpoint devices and the data they handle include:

• Enabling remote wipe capabilities to erase sensitive data from lost or stolen devices
• Using encryption to secure data both at rest and in transit across all endpoints
• Deploying dedicated endpoint protection solutions, particularly those with anti data exfiltration (ADX) technology for real-time monitoring and automatic threat blocking

For businesses to effectively prevent data leakage, they must understand where their weaknesses lie. Identifying vulnerabilities across all systems, processes and infrastructure is a critical first step toward building a secure environment and protecting sensitive data.

This begins with understanding the data itself – including where it is stored, what it contains and who needs access. Organizations should conduct an audit to locate, classify and map all sensitive data across their network. Knowing where critical information resides and how it flows through systems helps uncover points of exposure that might otherwise go unnoticed.

Regular risk assessments are also essential. These evaluations help uncover gaps in security controls, outdated software and misconfigured systems that may be overlooked during day-to-day operations. Conducting these assessments on a scheduled basis ensures new risks are identified as technologies, users and threats evolve.

Patching known vulnerabilities is another vital element of any risk mitigation strategy. Software providers regularly release updates to address security flaws, but if these are not applied promptly, systems remain exposed. Vulnerability scanning tools can automate the process of detecting weak points for issues like cloud misconfiguration and potential DNS exfiltration points and help prioritize remediation efforts.

Effective data protection requires more than isolated fixes. Businesses need a structured, layered approach that addresses vulnerabilities across systems, users and devices. By combining technical controls with clear processes and education, firms can build stronger defenses against data leakage and respond quickly when incidents do occur.

Strong technical controls form the backbone of any data leakage prevention strategy. These tools help secure systems against both internal and external threats, with key things to think about including:

• Encrypting data at rest and in transit to protect information wherever it resides
• Using intrusion detection and prevention systems (IDPS) to monitor and block suspicious activity
• Deploying endpoint protection tools with anti data exfiltration (ADX) to stop unauthorized transfers in real-time

Policy-led data governance helps align security efforts across the organization. Clear, well-enforced policies ensure vital processes are being followed and are essential for reducing the risk of data leakage. To do this, businesses should:

• Develop and enforce data handling policies that define how information is accessed, shared and stored across the organization
• Establish and test a detailed incident response plan to ensure fast, coordinated action when a leak occurs
• Maintain a strong patch management program to address known vulnerabilities before they can be exploited

Human error is a leading cause of data leakage. Indeed, it’s estimated that in 2024, this contributed to 95 percent of data breaches. However, the counter to this is that educated and empowered employees are also the first line of defense against accidental and intentional data leaks.

Elements that must be included in effective training include:

• Conducting regular cybersecurity awareness programs to keep employees informed of current threats
• Simulating phishing attacks to test and improve real-world responses
• Encouraging a culture of security mindfulness and emphasizing this is everyone’s responsibility, including being cautious with emails and promoting strong password practices

BlackFog provides a critical layer of defense against data leakage through our advanced endpoint security platform. This uses dedicated anti data exfiltration (ADX) technology, which can not only detect threats, but actively prevents them by automatically blocking unauthorized data transfers in real-time.

Real-time data exfiltration prevention is a critical last line of defense as it stops sensitive information from leaving the network without approval. This means that even if perimeter defenses have been breached, information will not be able to leave the network.

ADX uses behavioral analytics to monitor device activity and detect unusual patterns, helping identify insider threats and advanced attack techniques before damage is done. It protects against key data breach threats like double extortion ransomware, alongside other solutions like data backup and recovery tools.

BlackFog’s lightweight solution operates at the device level and works across all endpoints, including those in remote and bring-your-own-device environments. It delivers full visibility and control without affecting performance, making it ideal for today’s hybrid workplaces.

While no single solution can prevent every risk, ADX plays a vital role in a layered security strategy. Combined with strong policy controls, user training and infrastructure defenses, it helps organizations significantly reduce the likelihood and impact of data leakage.

Protecting against data leakage is not a one-time fix, but a continuous process. As threats evolve, so must the strategies and technologies used to defend against them. Businesses need to stay proactive, regularly reviewing vulnerabilities, refining policies and investing in technology like ADX to strengthen their security posture.

Success requires a balanced mix of technical controls, clear processes and well-informed employees. By committing to ongoing evaluation and improvement, firms can reduce their risk, respond quickly to emerging threats and build a stronger, more resilient data protection framework.