With companies today collecting, storing, and processing more data than ever before, the cloud has proven to be an invaluable addition to the business technology landscape. It provides almost infinitely scalable storage for increasingly vast amounts of corporate data, offering reliable remote access and convenience compared to more conventional data storage solutions.
However, data in the cloud can still be lost, leaked, or fall into the wrong hands if it is not properly controlled and secured. That is where cloud data loss prevention (DLP) comes into play. Cloud DLP solutions enable companies to identify sensitive data, understand the risks of data loss, leaks, and breaches, and take appropriate actions to secure their cloud-based assets. For organisations using enterprise cloud storage, these controls are especially important because sensitive files need clear ownership, access rules, and monitoring from the moment they are stored.
Cloud Data Loss Prevention (DLP) Explained
Data loss prevention refers to the strategies, tools, and processes used to ensure that sensitive data remains as safe and secure as possible. It guards against the myriad of risks that can impact data, including targeted cyberattacks, dangerous data breaches, and even accidental losses due to insufficient access controls or other fundamental weaknesses.
When it comes to cloud data loss prevention, this refers to a specific type of DLP that leverages the power of cloud-based tools and solutions to safeguard data at all times and in all locations. With more businesses now invested in the cloud, data loss prevention, cloud practices, and policies are more important than ever.
This is particularly true for organisations in high-risk industries that handle massive amounts of sensitive data, such as the United Kingdom’s Ministry of Defence (MOD) or National Health Service (NHS). Such organisations must deploy the most robust security measures to eliminate almost all risk of data loss.
Why Cloud DLP is Essential for Modern Businesses
With regard to collecting and storing information, today’s businesses operate significantly differently from those of decades past. There has been a fundamental shift as companies transition from conventional paper-based data storage and security systems to complex cloud-based strategies. This can be seen across numerous industries, from the aforementioned examples of healthcare and defence to retail, logistics, finance, and more.
The cloud enables businesses to store vast quantities of data, providing reliable access to any information they may need. Additionally, since cloud resources are accessible from anywhere, cloud systems are almost fundamental to collaborative working in the modern world. As an added benefit, cloud storage is impervious to the dangers that could disrupt conventional systems, like natural disasters.
At the same time, the cloud introduces new challenges and risks of its own, demanding careful and complex management. To maximise the benefits while mitigating its challenges, a data loss prevention cloud computing strategy is essential. No modern business, especially one working with sensitive data on a daily basis, can hope to compete or even survive without it.
Understanding the Risks of Data Loss in the Cloud Era
As organisations become increasingly invested in cloud computing and hybrid work models, with remote teams of employees and close collaboration with external partners and stakeholders, data that may seem secure is, in fact, at a greater risk than ever before. These include:
- Cyberattacks: Bad actors can exploit weaknesses in cloud-based systems to steal, modify, or delete sensitive data and files from a company’s cloud servers. Even a minor misconfiguration in a cloud system can effectively open the door to these attackers, allowing them to orchestrate phishing schemes, malware infections, or ransomware strikes on their targets.
- Shadow IT: Many employees – especially those working remotely – utilise their own cloud services and applications for storing data and completing tasks. This, in turn, can create visibility gaps where IT teams are unable to see and control the flow of sensitive data, while also possibly presenting new entry points for cyberattacks to target.
- Remote workforce vulnerabilities: Remote workers or external partners can access corporate cloud services from various locations and devices, but not all of these connections will necessarily be secure. They might attempt to connect to the cloud via a public Wi-Fi hotspot, for example, or on an insecure or compromised device, thereby increasing the risk of a potential breach or loss. Organisations should also encourage employees to regularly clear on Mac and desktop devices any outdated files or unnecessary data that could raise exposure risks and complicate data governance efforts.
- Human error: Even the best-trained and most experienced individuals sometimes make mistakes, and many data breaches and losses are often the result of a mere oversight or seemingly minor error. Employees who lack training or are overworked, for example, could accidentally send sensitive files to the wrong recipient or misconfigure cloud server settings.
- Misconfigurations: As mentioned in the previous point, even a minor misconfiguration can cause chaos for corporate cloud data. If permissions are not correctly controlled, for example, unauthorised users could more easily access files that are not as secure as they seem to be. Storage bucket misconfigurations and exposed APIs may also expose sensitive data.
Only with the aid of controlled solutions and data loss prevention for cloud strategies can organisations mitigate these many risks and keep their cloud data safe, both at rest and in transit.
DLP and Regulatory Compliance
Many organisations are also compelled to meet specific compliance standards and rules regarding how they store and manage sensitive data. Examples of these regulatory standards include GDPR, HIPAA, PCI DSS, and ISO 27001 certification. Organisations found to have contravened such regulations may face fines and other penalties, including suspension of their operations.
Data losses and compliance failures also often bring additional negative consequences, such as reputational damage, customer losses, and even the threat of legal action. Strong cloud data loss prevention policies, backed up by proven secure technologies, are vital for minimising these risks and meeting strict compliance standards.
The Kahootz secure cloud collaboration platform is the ideal foundation for a nearly impenetrable cloud DLP strategy. It is 100% GDPR compliant and designed to meet robust government standards, such as the NCSC Cloud Security Principles. Kahootz also provides state-of-the-art security protections and strict access controls that any organisation needs to prevent costly losses.
How Cloud DLP Works
Data loss prevention, be it cloud-based or conventional, typically follows the following four-step structure:
Step 1. Discovery
DLP begins with a discovery or identification process in which the organisation’s data infrastructure – databases, cloud servers, and applications – is essentially scanned and analysed. This helps to paint a clear and complete picture of the many pieces of data collected, processed, and managed by the business in question.
Step 2. Classification
After data has been discovered, it must be sorted into relevant categories based on the business’s own rules and definitions regarding what is sensitive data and which files require the strongest protections. Typical data categories might include “Public,” “Confidential,” and even “Official Sensitive,” for example, depending on the industry in which the business operates and the type of work it conducts.
Step 3. Protection and Policy Enforcement
Next comes the crux of cloud data loss prevention: the actual protective measures and policies used to keep data safe. While every business is unique, most DLP systems operate similarly, monitoring databases and other infrastructure to detect potential policy violations. If and when a violation is detected, the system responds appropriately and in real-time, in accordance with the company’s policies.
These responses may include:
- Encrypting data as it leaves one server, network, or device to transfer elsewhere
- Suspending access to data that may be deemed suspicious or unauthorised
- Issuing warnings or alerts to users regarding policy violations
- Blocking transfers that show signs of being unauthorised or malicious
- Flagging suspicious actions for IT teams to review
Step 4. Reporting and Continuous Monitoring
DLP is an ongoing process. Tools will continue to monitor data streams and sources, seeking out suspicious activities or policy violations over time. Cloud-based tools are particularly customisable and flexible, allowing clients to update their policies over time to reflect structural or organisational changes, as well as review reports and analytics to track their DLP program performance.
Traditional DLP vs. Cloud DLP
| Traditional DLP | Cloud DLP | |
| Mode of Deployment | A combination of network devices, server software, and endpoint agents | Able to be deployed rapidly from the cloud as a service, with no hardware needed |
| Scalability | Restricted by the limitations of the hardware involved | Almost unlimited scaling potential |
| Performance | Can struggle with congestion and delays during peak activity periods | A more modern and capable solution for effective, continuous collaboration |
| Costs | Can be quite high due to the need for physical hardware, plus software solutions | Generally lower, because there are no big initial hardware costs needed |
| Level of Protection | Mainly focused on the local network perimeter and may struggle with cloud apps and encrypted data | More comprehensive, capable of protecting data in almost any location and at all times, in transit and at rest |
How Kahootz Supports Data Loss Prevention
Kahootz is a secure-by-design cloud collaboration platform that provides customisable online workspaces where internal teams and external stakeholders can communicate, exchange ideas, and work together safely and securely. Its built-in security features make it an ideal solution for supporting cloud-based data loss prevention.
These features include industry-leading encryption algorithms for data both at rest and in transit, ensuring that every communication is entirely secure and inaccessible to outside parties. Kahootz also offers strict, granular access controls, allowing users to specifically manage who can access which pieces of data at any given time, thereby massively minimising the risks of unauthorised access and exfiltration.
Trusted by the likes of the NHS, MOD, HM Land Registry, and Independent Monitoring Boards (IMB), Kahootz is a leading provider of cloud-based security, making any DLP strategy or policy both simpler and more effective for its users.
Main Use Cases for Cloud DLP
The primary objectives of cloud DLP are:
- To protect sensitive data
- To help businesses comply with regulations
- To provide data visibility
- To secure remote and hybrid work environments
- These end goals are essential for businesses in numerous industries.
Those in defence, for example, such as MOD suppliers or partners, may have to handle OFFICIAL-SENSITIVE information that requires the highest levels of encryption to prevent potentially disastrous leaks and losses.
Governmental agencies, too, are often tasked with handling vast amounts of public data, including sensitive details such as names, addresses, and other personal information. They need to ensure they have systems in place to track even the most minor policy violations and take remediation actions instantaneously.
Healthcare organisations, meanwhile, must adhere to the strictest data protection regulations when handling patient files, lab test results, and other sensitive information. They also frequently need cloud DLP to ensure these processes occur smoothly and securely.
Conclusion: Cloud DLP – A Business-Critical Solution for Organisational Security
As businesses increasingly move towards more mobile-first, cloud-oriented operations, modern cloud DLP is no longer a mere optional extra or potential consideration; it has become a business-critical imperative. Organisations in healthcare, defence, law, government, and other sectors must invest in DLP to comprehensively protect their data, clients, workforce, and futures.
