What is Cloud Data Loss Prevention (DLP)?

Cloud DLP defined

Data loss prevention (DLP) is a collection of cybersecurity capabilities that protects sensitive data from unwarranted access, transmission, and misuse. The prevalence and cost of data breaches have incentivized companies to incorporate DLP into their cybersecurity programs. 

While on-premises DLP solutions are challenging in their own right, data in the cloud faces unique DLP challenges. As a result, many organizations require specialized cloud DLP solutions to reduce data risk. Cloud DLP solutions address the specific challenges that affect data in cloud-based environments and complement the capabilities of a broader DLP framework. 

In this article, we’ll provide an overview of cloud DLP, including fundamentals, best practices, and how your organization can implement an optimal cloud DLP strategy.

The fundamentals of cloud DLP

Cloud DLP combines tools and practices to safeguard data in the cloud from unauthorized access and transfer. It is essential for cloud data security, risk management, and regulatory compliance, especially for organizations subject to laws and regulations like the GDPR, HIPAA, and PCI DSS. 

The five pillars of cloud DLP

Cloud DLP solutions address multiple use cases and require specific capabilities to solve modern cybersecurity and compliance challenges in the cloud. Though specific DLP implementations will vary from organization to organization, a robust cloud DLP solution should include each of these key pillars: 

1. Data discovery and classification: To protect sensitive data effectively, organizations must first have full awareness of what data is sensitive and the degree to which it is exposed to risk. Automated scanning of datasets allows organizations to efficiently classify sensitive data without requiring human input. 

2. Access control and monitoring: Even though data is sensitive, it must be accessible for business operations to continue to flow uninterrupted. Granular control of access to this data ensures only the required personnel have access. Organizations must also implement monitoring and logging for user activity and data access to support auditing and analytics.

3. Policy enforcement: If a policy violation is detected, cloud DLP tools are tasked with taking the necessary action to prevent further data exposure or misuse. These actions include blocking data transmission, encrypting data, or applying data masking.  

4. Controlling the flow of data: Cloud services integrate with numerous third-party sources and services. Cloud DLP controls how this data flows by enforcing practices such as filtering sensitive information and blocking unauthorized transfers.

5. Real-time alerts and response: Organizations must implement real-time alerting so administrators are notified instantly if a breach occurs. They should also configure automated alert response to help minimize the damage and block ongoing attacks.

Challenges of implementing cloud DLP

The cloud brings many benefits — such as cost optimization and elasticity — to organizations, which subsequently adopt cloud services and store data in cloud environments. There are, however, a number of cloud-specific challenges that organizations must address.

Cloud scalability and dynamism

One of the main benefits of the cloud is elasticity: the capability of scaling up and down depending on the volume of traffic. However, this is simultaneously a data security liability. After all, rapid scaling can make it harder to determine where data is stored and how it is accessed. The global nature of the cloud makes securing data even more complex, especially when considering that each geographical region has its own set of regulations and standards that must be adhered to.

Visibility limitations  

Multi-cloud and hybrid cloud environments are becoming increasingly popular as companies attempt to obtain the best value by combining services from various cloud providers and their on-premises data centers. This trend necessitates a centralized approach to data visibility. But a centralized approach is not always easy to implement, especially because different cloud providers bring diversity and inconsistency when it comes to data formats, access control mechanisms, and other configurations.

Application runtime data leaks

During application runtime, sensitive data — such as user credentials, personal information, and financial records — can be transmitted through logs and API responses. These leaks often occur due to misconfigurations and insufficient access controls. Improper monitoring can cause these leaks to go undetected.

Integration complexities

Public cloud providers integrate with a large number of third-party services. However, these services may implement their own standards and practices that are not fully compatible with all cloud providers. Sharing sensitive cloud data with third-party integrations raises multiple security concerns; for example, if a vendor has poor data security practices, it may lead to data leakage.

Transmitting or storing data using third parties also requires increased documentation and compliance work to verify how cloud providers handle sensitive data. This is particularly critical when dealing with credit card information or data in the healthcare industry.

Four best practices for cloud DLP

Though no two cloud DLP implementations are exactly the same, a proven set of best practices can help organizations implement cloud DLP in a way that addresses common cloud challenges. The following best practices can help modern organizations effectively implement cloud DLP. 

#1: Establish a data protection strategy

Organizations should define clear policies when handling sensitive data. These policies should focus on proven practices such as encryption, strict access control, and robust data classification. Teams should regularly conduct a thorough inventory and risk assessment of sensitive data. Obtaining data security certifications like ISO 27001 can further enhance a company's credibility and ensure that data security is highly standardized.

#2: Adopt a Zero Trust security model

Access to sensitive data must be tightly controlled and available only to personnel and processes requiring legitimate access. Enforcing access policies based on Zero Trust and the principle of least privilege ensures that even if access credentials are leaked, the blast radius of an attack is highly compartmentalized to minimize impact. Continuous verification of access to sensitive data helps detect anomalous activity and ensure that only authorized individuals are permitted access.

#3: Leverage automation and AI tools

Human-mediated DLP processes can be tedious and prone to error. Utilizing automation and AI tools can significantly reduce the probability of error and allow administrators to focus only on tasks that require human attention. AI tools have proven to be efficient at classification tasks, and compliance and incident response processes greatly benefit from automation. Leveraging these tools ensures quick and seamless resolutions to potential breaches.

#4: Monitor and audit regularly

Real-time monitoring and comprehensive logging provide high levels of observability and ensure that each request for sensitive data can be easily tracked and analyzed. Regular audits are necessary to identify potential vulnerabilities and ensure regulatory compliance.

Benefits of implementing cloud DLP

Incorporating cloud DLP in an organization’s cloud environment brings several tangible business benefits, including:

• Improved regulatory compliance: Enforcing secure data handling in the cloud helps businesses achieve much higher levels of regulatory compliance. 

• Streamlined operational efficiency: DLP automation dramatically decreases the required human effort, which helps reduce burnout and allows employees to focus on more critical tasks while minimizing the possibility of human error.

• Reduced risk of cybersecurity incidents: Cloud DLP significantly reduces the risk of cybersecurity incidents, meaning that financial and reputational damage is far less likely. This makes cloud DLP not just a compliance tool but a critical component of a comprehensive security strategy.

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