Data Leak Prevention (DLP): Why Your Business Needs Data Loss Prevention

Chris Colesby

Technical Services Director

April 10, 2025

data leak prevention

Here’s a stat worth paying attention to—93% of companies that lose their data for a long time end up going out of business. That’s how serious a data leak can get.

Every business handles sensitive information, from customer records to financial data. If that data leaks, the damage can be fast and expensive.  

That’s why data leak prevention (DLP) isn’t just a “nice to have” anymore. This guide breaks down what causes data leaks, the different types, and how DLP works to keep your business protected.

[.c-button-wrap][.c-button-main][.c-button-icon-content]Contact Us[.c-button-icon-content][.c-button-main][.c-button-wrap]

What is data leak prevention?

What is Data Leak Prevention (DLP)?

Data leak prevention refers to a set of technologies, policies, and procedures that are designed to prevent the unauthorised transfer or exposure of sensitive data.

The goal is to stop data leakage before it can leave the organisation—whether intentionally or accidentally. 

DLP tools monitor and control the movement of data at rest, data in motion, and data in use, ensuring that only authorised users have access to sensitive information.

A comprehensive DLP system includes multiple layers: identifying where specific data resides, classifying it based on sensitivity, controlling access to data, and detecting potential threats.

DLP software often uses real-time traffic analysis and behaviour-based detection to stop threats before they result in a data breach. 

These solutions help protect customer data, financial records, intellectual property, and other forms of confidential data.

How do data leaks happen?

Data leaks occur for a range of reasons. Some are accidental, others are malicious. Understanding the common causes of data leaks is the first step toward building an effective prevention strategy.

Here are the most common causes of data leakage:

  • Human error: Accidentally sending an email with sensitive data to the wrong recipient.
  • Phishing attacks: Employees tricked into sharing login credentials or downloading malware.
  • Poor access control: Too many users have access to data they don’t need.
  • Unsecured data storage: Sensitive files are stored without encryption or adequate protection.
  • Unmonitored cloud environments: Data transferred without oversight to external storage or platforms.
  • Outdated software: Systems without current patches may be vulnerable to intrusion.
  • Shadow IT: Employees using unauthorised apps or services for data transfer.
  • Lost or stolen devices: Laptops or phones containing sensitive data falling into the wrong hands.
  • Weak data retention policies: Old data is stored unnecessarily, increasing the risk of exposure.
  • Insider threats: Disgruntled employees or contractors leaking data intentionally.

These causes of data leaks underline the need for businesses to adopt a detailed data leak prevention strategy that doesn’t just focus on external threats but also internal vulnerabilities.

Types of data leakage

Curious about what kinds of data leaks are putting businesses at risk? These are the most common types of data leakage that businesses deal with.

Accidental data leakage

Accidental data leaks are some of the most common incidents. They often happen when employees send files to the wrong email address, upload documents to unsecured platforms, or misconfigure cloud storage.

For example, a sales report containing customer data might be shared externally without proper redaction. This form of data leakage usually stems from a lack of awareness, insufficient training, or weak DLP policies.

Malicious data leakage

In some cases, employees or outsiders deliberately attempt to access and leak data. This could involve an insider copying large volumes of data to an external drive or a hacker breaching a network to steal customer data.

Malicious leaks often target critical data that can be sold or exploited, such as financial records, personal identifiers, or intellectual property.

How data leaks happen

Types of DLP solutions

Not sure which type of data leak prevention solution makes the most sense for your business? Find out the list below. 

Network DLP

Network DLP tools monitor and control data in motion. These systems track data as it moves across the business’s network, including emails, file transfers, and web traffic.

Network DLP is essential for preventing unauthorised data transfer through email attachments, FTP uploads, or messaging platforms.

For example, a network DLP system might scan outgoing emails for credit card numbers or personally identifiable information (PII).

If a policy violation is detected, the system can block the message, quarantine the file, or alert administrators. By monitoring network traffic, these tools help prevent data exfiltration and data leakage incidents in real-time.

Endpoint DLP

Endpoint DLP focuses on data in use—what happens to data on user devices like desktops, laptops, or mobile phones. These solutions are designed to prevent users from copying data to USB drives, printing sensitive documents, or uploading files to external sites.

For example, if an employee tries to transfer confidential data to a personal USB stick, the endpoint DLP software can block the transfer and log the attempt.

This helps secure data from both negligent and malicious insiders. It also gives IT teams control over what forms of data can be accessed or shared from specific devices.

Cloud DLP

With more businesses shifting to cloud-based services, cloud data leak prevention has become critical for protecting data stored or processed in platforms like Google Workspace, Microsoft 365, and AWS.

Cloud DLP solutions monitor data at rest and data in motion within the cloud, ensuring that only authorised users can access or share it.

These tools often integrate with cloud-native applications and APIs to analyse files for sensitive content and enforce data protection policies.

For example, cloud DLP might detect an attempt to share a document containing financial data outside the organisation and block the action.

7 benefits of having DLP solutions in place

Trying to figure out why DLP solutions matter for your business? These key benefits show how data leak prevention tools do more than just protect—they keep your operations compliant. 

1. Prevents unauthorised access to sensitive data

A strong DLP solution helps protect data by controlling who can access, modify, or transfer specific data sets.

With a reliable data loss prevention system in place, businesses reduce the chances of internal leaks and prevent sensitive data from falling into the wrong hands.

Access to data should always be granted based on role, purpose, and necessity. 

2. Reduces the risk of data breach incidents

Data breaches are one of the most expensive and damaging outcomes of poor data security.

A well-executed DLP strategy can prevent data leaks that often lead to breaches by monitoring data in motion, data at rest, and data in use. 

By catching unusual behaviour early—like unauthorised transfer of data or attempts to exfiltrate large volumes of data—a DLP system reduces the risk before it escalates.

3. Ensures compliance with data protection regulations

Regulations like the General Data Protection Regulation (GDPR) and other data protection laws demand that businesses adhere to data handling and retention policies.

DLP solutions support these requirements by enforcing encryption, controlling data storage, and maintaining an audit trail of access to sensitive data.

4. Helps classify and organise critical data

One of the components of a data leak prevention strategy is accurate data classification.

Knowing which data is critical, confidential, or public-facing is essential for applying the right security controls. DLP systems use identification algorithms to classify data based on content, context, and file type.

Once classified, data can be tagged and tracked across systems, enabling businesses to apply consistent DLP policies and protect data regardless of where it resides. 

5. Improves visibility and control over data transfer

Many businesses struggle with unmonitored data transfer. Files are sent over email, uploaded to cloud platforms, or copied to USB drives without oversight.

DLP software tracks this activity, providing visibility into where data goes and who handles it.

With this control in place, businesses can prevent data from leaving the business in unauthorised ways.

Whether dealing with internal risks or outside threats, traffic to detect sensitive data becomes a powerful prevention solution.

6. Detects and blocks potential threats in real-time

Modern DLP tools are equipped with behavioural analytics that monitor user actions and network traffic. This allows businesses to detect sensitive data misuse before it leads to a leak.

For example, if an employee suddenly tries to download large volumes of data or share confidential files externally, the DLP system can block the action and send a security alert.

7. Supports a stronger overall security solution

Data leak prevention isn’t a stand-alone fix—it supports a broader security solution that includes encryption, access management, and intrusion prevention.

Together, these systems help reduce the risk of data leakage incidents, enforce data retention policies, and secure data from every angle.

How to prevent data leaks

How to prevent a data leak

Unsure how to keep your sensitive data from slipping through the cracks? Here are some of the benefits of data leakage prevention.

Step 1: Identify and classify data

Start by analysing the types of data your organisation collects, processes, and stores.

Data classification is necessary to determine which assets require high-level protection and where they reside.

Using data identification tools within your DLP system helps detect sensitive data across devices and platforms. Once identified, these files can be labelled and tracked, making it easier to apply targeted DLP policies and prevent data leakage.

Step 2: Develop a data leakage prevention policy

A clear, enforceable data leakage prevention policy is a key component of any prevention strategy.

This policy outlines the rules for data handling, defines acceptable behaviour, and sets procedures for data access, transfer, and storage. It also identifies the consequences of policy violations and details the steps for reporting suspicious activity.

Step 3: Use the right DLP software and tools

Invest in a data leak prevention solution that matches your business size, risk level, and infrastructure.

Whether it’s endpoint protection, network DLP, or cloud DLP, each component adds a layer of protection. These tools work together to prevent data from leaving the organisation through unauthorised channels.

Step 4: Control access to sensitive data

Limit access to data based on employee roles. Not every team member needs to view or handle financial data or confidential project files.

Use identity-based access control systems that ensure employees can only access data they are authorised to work with.

Access management plays a major role in preventing accidental data leaks and data exfiltration. 

Step 5: Monitor data transfer and activity

Install systems that continuously monitor how data is accessed and transferred.

This includes internal movement between departments as well as external data sharing through email, cloud storage, or physical devices.

Monitoring tools can alert security teams to unusual data behaviour—such as large-scale downloads or attempts to send files outside the network. These early warnings are critical to stopping a data breach before it happens.

Step 6: Encrypt and secure stored data

Even data at rest can be a liability if it’s not protected. Use strong encryption protocols to secure stored data, especially on portable devices, external drives, and cloud environments.

Data encryption ensures that even if files are leaked or stolen, they are unreadable without the proper credentials.

Step 7: Audit and test your DLP strategy regularly

Data leak prevention is not a one-time setup—it’s an evolving process.

Conduct regular audits to evaluate your DLP accuracy, check for new vulnerabilities, and test how the system responds to simulated threats. These assessments help refine your DLP strategy and keep it effective against emerging risks.

DLP best practices for every business

Not sure what actually makes a DLP strategy effective? These best practices break down what every business should be doing to prevent data leaks and protect sensitive information.

  • Use role-based access controls to limit access to sensitive data
  • Enable multi-factor authentication on all data access points
  • Apply real-time monitoring to detect unusual file transfers or activity
  • Train employees regularly on data security policies and risks
  • Create a detailed data classification system based on sensitivity
  • Encrypt all confidential and critical data at rest and in motion
  • Establish strong cloud DLP configurations for remote teams
  • Perform regular audits and security assessments of your DLP system
  • Use automated tools to apply and enforce DLP policies across platforms
  • Keep all software and systems updated to prevent vulnerabilities

Why choose Clarity IT for your DLP needs?

Looking to protect data, prevent leaks, and avoid costly data breaches? Get started with a free consultation from Clarity IT—your trusted partner in comprehensive data leak prevention.

We’ll assess your current data security setup, recommend the right DLP solution, and guide you through building a strong prevention strategy that fits your business.

Secure your data. Secure your future. Reach out to Clarity IT today.

[.c-button-wrap2][.c-button-main2][.c-button-icon-content2]Contact Us[.c-button-icon-content2][.c-button-main2][.c-button-wrap2]

Frequently asked questions

What is a data leak, and how does it happen in businesses?

A data leak refers to any unauthorised exposure of sensitive data to external parties, whether intentional or accidental. Most leaks occur due to poor access control, unsecured data storage, or improper data transfer, and they often lead to a data breach if not caught early.

Understanding the causes of data loss and implementing the right controls is key to avoiding this type of security solution failure.

What are the types of data that businesses need to protect the most?

The most vulnerable types of data include financial data, personal data, customer data, and confidential data such as trade secrets. These forms of critical data are frequently targeted due to their value and are considered high-risk in terms of data protection.

Whether it's data at rest, data in use, or data in motion, businesses must ensure proper safeguards are in place to protect data and maintain compliance.

What are the common causes of data leaks?

Common causes of data leaks include accidental data leaks, unauthorised access to data, poor data classification, and the unauthorised transfer of data through unsecured channels.

Weak data retention policies, human error, and lack of a solid data leakage prevention policy also contribute. Each of these factors could result in a data exposure that impacts your entire operation.

What is the difference between data leakage and data exfiltration?

Data leakage generally refers to the accidental or unintentional exposure of sensitive data, while data exfiltration is a deliberate act where an attacker or insider intentionally removes or copies confidential data.

Both are harmful and demand a strong prevention strategy, including the use of intrusion prevention systems and data leakage detection and prevention tools.

What are the best data leak prevention strategies for modern businesses?

Effective data leak prevention strategies include setting up DLP policies, using cloud DLP, monitoring traffic to detect sensitive data, and limiting access to data based on roles.

It’s also essential to analyse data, enforce data encryption, and apply encryption and data retention policies for all forms of data. A multi-layered approach offers more comprehensive data leak prevention.

Which tools and software help in preventing data leaks?

There are several powerful data leakage prevention tools and DLP software available that monitor, detect, and prevent leaked data. These include network DLP, endpoint DLP, and data loss prevention software that work together to ensure data leakage prevention across all channels.

These tools identify and control the components of a data protection system and help businesses adhere to data protection laws.

How can a DLP solution protect against large volumes of data loss?

A well-implemented DLP solution monitors large volumes of data in real-time, detects specific data patterns, and applies automated rules to prevent sensitive data from leaving the organisation.

It can also identify data and log incidents and help control data access to reduce the risk of data exposure. This level of oversight greatly increases the accuracy of your DLP and helps prevent data leakage before it causes damage.

Why is it important to use a comprehensive data leak prevention strategy?

Using a comprehensive data leak prevention plan ensures your organisation can prevent data, stop data leaks from occurring, and manage potential data risks effectively.

This includes setting up robust DLP tools, conducting leak detection, and understanding the types of data leakage that apply to your business. With the right data leakage prevention tools, businesses can stop the result of a data leak scenario before it starts.