How Companies Can Prevent Corporate Data Leaks Caused by Their Employees in 2020

Companies often blame professional hackers for corporate data leaks. However, 56 percent of all personal data leaks in the world happen as a result of an employee’s error, according to the EY report released in 2019. Why does it happen? Is it possible to protect companies from threats created by their employees?

Companies are becoming increasingly aware that staff members play significant roles in endangering corporate secrets. Of IT specialists working in companies, 79 percent believe that it is employees’ faults that sensitive data is leaked. Of course, not all of them endanger corporate data on purpose. Cybersecurity breaches can be intentional and accidental.

Accidental violations

Sometimes, unintentional corporate leaks happen because of employees’ negligence or unawareness. As happens most often, employees fall prey to phishing. Phishing refers to spreading e-mails infected with malware from sources disguised as verified and trusted.

Besides, many phishing websites disguise themselves as websites of well-known companies such as Facebook or various banks.

Masterminds of phishing attacks pursue the following goals: install malware on corporate computers to gain control of and manage them remotely and to steal usernames, passwords, banking information required to conduct a cyberattack.

Phishing is rapidly becoming a widespread type of cyberattack. According to Microsoft, the average number of phishing attacks per month increased by 350 percent in 2018. Last year alone, the number of companies that were compromised by phishing cyberattacks increased by 65 percent, and the number of hacked personal accounts increased by 70 percent.

Weak passwords
Weak passwords are the second-most widespread reason for corporate data leaks. In this respect, the numbers are shocking: according to a recent report by Verizon, more than 70 percent of employees use identical passwords. The report also specified that 81 percent of successful cyberattacks were made possible because weak passwords were stolen or cracked.

Free will
Another reason why employees endanger corporate data is that they willingly share it, oblivious to its secrecy. According to a poll conducted by Egress, 40 percent of employees think that their companies possesses exclusive rights to the data that they collect and store, while 29 percent of respondents firmly believe that they personally own the information they work with. These numbers demonstrate that most employees are not aware of how critical cybersecurity is for their companies. Only 25% of employees receive monthly updates from IT departments on the topic of cybersecurity.

Try out LeaksID, our cloud solution to store documents, collaborate on them, and securely share them.

Intentional violations

But why would employees leak corporate data deliberately? Reasons could vary from an impending layoff to resentment towards employers. Yet the most common reason why employees leak data is money. Seventy-five percent of data leaks in 2018 resulted from employees’ selfish desire to earn extra money, according to Verizon.

There are numerous ways to steal valuable information:

  • Copying data to third-party removable storage;

  • Transferring data via corporate or private email;

  • Uploading data to cloud-based storage;

  • Transferring data through social media and messenger apps;

  • Stealing data by photographing screens or taking screenshots.


How can a company protect itself against unintentional corporate data leaks? First and foremost, the company’s employees must be educated about cybersecurity. They must know how to protect themselves and the company from phishing cyberattacks with simple security measures.

For example, employees must always thoroughly check the domains of all websites they visit; they must not follow hyperlinks that look suspicious and must always verify the email address and sender’s name before opening an email.

Phishing emails often contain general greetings, a call to perform an urgent action, and hyperlinks embedded in the body of the message. Employees should think twice before sharing corporate data with a website they access by following such a link.

Three easy rules can help protect the company from its passwords being cracked.

  1. Always use different passwords for different accounts, separating professional from personal accounts.
  2. Change passwords regularly, at least once every few months. This security measure is easy yet very effective. A password-manager tool may help if you find this particular measure to be too tedious.
  3. A multi-factor authentication process also substantially decreases the risk of a security breach.
Besides, employees must understand that they bear criminal responsibility for leaking sensitive corporate data. A separate clause that specifies an employee’s responsibility and the consequences of violating the clause may help raise awareness among the staff.
Barrier technology
Technology can help to prevent intentional leaks of corporate data. For a long time, companies have been using data-leak-prevention (DLP) technology that monitors incoming and outgoing online traffic to protect corporate data. If an employee attempts to leak sensitive data via e-mail or removable storage, the system blocks the user’s suspicious action and notifies the security service of the company about the unauthorized attempt.

Yet DLP technology has several flaws.

For example, the system may slow down a workflow in the company if it blocks a suspicious transfer of confidential data. In addition, even though the DLP technology is an effective tool for analyzing incoming and outgoing traffic, it cannot protect companies against employees who leak data by photographing computer screens or by printing out sensitive documents. The DLP system cannot identify or pinpoint a specific breacher.

When it comes to photo and printing sensitive documents, DLP system fails to identify or pinpoint a specific breacher.

Preventive measures
The Information Leaks Detection (ILD) system is a novel solution that complements the DLP technology. It is also known as Leaks ID in the United States.

The ILD technology can detect and pinpoint a specific breacher by creating individually marked copies of all files for each individual user. The system creates a new copy every time a document is being modified. The ILD system is capable of creating trillions of unique copies of a single Word or Pages document.

Even enterprises dealing with a large volume of documents will find this solution sufficient.

Visually, a modified copy does not differ from the original. Yet every element of the file contains unique tags that the system uses to identify a sender and a recipient of any given copy. In case sensitive information gets leaked to competitors, clients, or mass media, a small fragment is sufficient to establish a source of the leak.

An ability to identify the source of a leak in case someone takes a screenshot of sensitive data or photographs a computer screen is one of the critical advantages of the ILD-system.

According to a Forbes forecast, up to 83 percent of corporate data will be stored on cloud services in 2020. Yet, cloud services are not the most secure way to store sensitive data. Therefore, leaks from cloud-based services grow every year — for example, more than 70 percent of sensitive data leaked from cloud-based servers in 2018.
Virtual Data Room (VDR)
Virtual Data Room (VDR), a service that provides a high degree of protection against data leaks, can prevent such incidents. VDR is a cloud-based service for storing and sharing data; it provides its users with flexible access settings and fingerprints them.

The VDR system is based on the ILD technology and, therefore, allows the company to identify a specific source of a leak in case it happens. Its easy-to-use interface is convenient for most of the employees, as it is similar to the Google Drive interface.
ILD and VDR technologies complemented with ILD systems are not only effective in pinpointing a source of a data leak, but also serve as a preventative mechanism to protect companies from employees with malevolent intent. Many leaks happen because perpetrators firmly believe it is impossible to trace the breach back to them. Informing employees about the ILD technology makes it clear to everybody that a potential culprit will be identified and punished. Communicating this to employees significantly diminishes the chances of malicious leaks.

A complex of measures that include prevention and introduction of new data protection technologies will help protect your company from corporate data leaks and, thus, significantly reduce the risk of reputational and financial losses.

You may also find this interesting

LeaksID Awarded High Performer in G2’s Spring 2023 Report

G-71’s LeaksID is a patented ITM solution recognized by G2 as a High Performer in Cloud File Security. The G2 recognition confirms LeaksID’s credibility, reliability, and efficiency, making it an indispensable tool for businesses dealing with sensitive information.

How to Protect Healthcare Data from Breaches and Leaks

The article discusses the importance of safeguarding sensitive patient information in the healthcare industry. It highlights the potential risks, and offers practical tips and strategies for securing healthcare data.

Data and Document Leak Investigation

If you suspect that your company has suffered a data leak, it’s important to investigate the situation immediately so that you can take action and mitigate any potential damage.

How Classified Information Walks Out the Door

The article examines various scenarios that can lead to this situation, including unintentional or deliberate actions by employees, as well as cyber threats and vulnerabilities.


What is an Insider Threat?

How can companies counter insider threat? What types of insider leaks exist? How to reduce insider risk with invisible labeling?

Confidential Data Leaks: Who Steals and Why?

The motives for hacking, especially virtual hacking through penetration into the secret infrastructure of a company, are very diverse, as are the methods used for such purposes. Here are some examples of the most common reasons for theft.