Emerging Risks Lurk: Can Sensitive Data Classification Keep Up?

About 82% of organizations employ a data classification system to categorize structured, semi-structured and unstructured data based on its sensitivity level, facilitating the application of suitable access controls and restrictions. Yet, numerous organizations are negating the advantages of data classification by granting employees access to more data than necessary (Source: 2020 State of Data Security Report).

The statistic highlights a common paradox in data security. While most organizations recognize the importance of data classification, many struggle to implement it effectively.

In this article, we will explore the role of sensitive data classification while shedding light on the risks of inadequate or improper classification methods.

Your Current Classification Technique Maybe Falling Short

In the past, organizations would manually scan their data repositories to identify the different data types. Teams of employees would physically review data, using predefined criterias and basic keyword searches to locate specific data types, which was limited and inefficient.

To overcome these limitations, classification methods have steadily evolved, incorporating techniques like dictionaries, regex, and now increasingly, powerful Machine Learning (ML) and Artificial Intelligence (AI) algorithms. Today, organizations leverage automated tools with sophisticated classification systems to analyze vast data repositories. These systems can go beyond predefined rules, considering factors like metadata, context, and content to categorize data with greater accuracy and efficiency. While advancements like Large Language Models hold immense potential, diverse ML techniques play crucial roles in this field. It's essential to remember that traditional methods might struggle with evolving data formats and complexities, increasing the risk of errors and inconsistencies.

Emerging risks:

Here are some newer trends and sensitive data concerns to consider:

• Deepfakes and synthetic data: Outdated methods may struggle to identify and classify manipulated media like deepfakes, leading to potential reputational damage or misinformation campaigns.

• Evolving privacy regulations: New regulations like CCPA in California and upcoming global frameworks are raising the bar for data protection and privacy, requiring more sophisticated classification systems.

• Artificial intelligence bias: Biased classification algorithms can perpetuate unfairness and discrimination, requiring careful consideration of ethical implications.

• Cybersecurity threats: New attack vectors and techniques constantly emerge, demanding adaptable and evolving classification systems to stay ahead of threats.

How to keep your data safe?

To effectively protect data, data teams must first inventory all data across various platforms, like cloud storage, databases, and employee devices. Leveraging modern auto-labeling and classification methods powered by machine learning can then tag and group files based on type, sensitivity (high, medium, low), and other relevant criteria. This granular classification enables you to choose appropriate security measures for each data category, effectively mitigating potential risks.

Securing sensitive data is particularly crucial. Understanding who can access, modify, own, and store these files is critical. Additionally, knowing how data loss impacts the organization (financial penalties, reputational damage) emphasizes the importance of strict access controls, data encryption, and user training programs to prevent unauthorized access, insider threats, and cyberattacks.

Furthermore, consider data remediation techniques like anonymization or redaction to further protect sensitive information. Anonymization methods like tokenization or pseudonymization can mask personal identifiers, while redaction removes specific data elements entirely. These techniques are valuable when combined with other security measures for optimal protection.

Data X-Ray for Sensitive Data Classification

Leverage Data X-Ray, the all-in-one solution for secure and efficient sensitive data classification. Stop spending hours manually sifting through files. Data X-Ray's AI-powered analysis scans 100x faster, automatically identifying and securing sensitive information across all your systems.

Enjoy a unified view of your data, regardless of cloud, on-premise, or SaaS applications. Collaborate seamlessly with enriched metadata and gain deep insights into data lineage. Reduce the risk of breaches and ensure compliance with Data X-Ray's advanced governance capabilities, including continuous file activity monitoring and granular access controls.

• Classify 10,000+ data sources in 1 click. Scan 100x faster than manual methods.

• Get a unified view of your data across cloud, on-premise, and SaaS applications.

• Automatically identify and secure sensitive data. Reduce the risk of breaches.

• Improve data governance and compliance. Gain deep insights into your data lineage.

• Collaborate around data effectively. Connect technical and business users.

Not a security measure; but a strategic imperative

The importance of effective data classification cannot be overstated. While the statistics show that most organizations recognize the need for data classification, many still struggle to implement it successfully. As we have explored in this article, the consequences of inadequate or improper data classification can be severe, ranging from reputational damage to regulatory non-compliance and cybersecurity threats.