Understanding Data Spill and How to Prevent It

Data is literally the fuel that businesses and organizations run with. From operational data to financial information, employees’ records, clients’ information and healthcare records, a vast amount of data is collected and processed for different purposes with the obligation of security. Organizations have the responsibility of preserving their data from unauthorized access, theft, loss, or damage, however, the prolificity of digitalization has given rise to increased risk of data spills. Data spill, also referred to as data leak, happens when confidential information is unintentionally released into an unsecured environment. In 2022, 422 million reportedly fell victims of some form of data compromise (Parachute, 2023).

In this article, we explore data spill, causes, consequences and how this cybersecurity threat can be prevented.

What is Data Spill?

Imagine that you worked in a financial institution and you managed a client’s account whose financial records you inadvertently forward to a wrong email address, or a public cloud storage folder, the confidential information becomes accessible to the wrong person who may use it for malicious intents. In this instance, data spill has occured.

When classified and sensitive information is accidentally released outside of its intended environment, data spill has occurred. It is usually a result of poor data security practices, human error, or system misconfigurations . This is different from a data breach which is often a deliberate attack by cybercriminals (IBM, 2024). Although data spills are often accidental, they can have critical and damaging consequences for businesses and individuals who are affected.

Real World Instances of Data Spill

Notable organizations and individuals have been enmeshed in the web of the complications of data spill. Their cases have further buttressed the need for robust data security measures. Here are some of the cases that have made headlines in recent years:

1.Facebook-Cambridge Analytica Case: Considered the most infamous case of data spill. In 2013, Facebook actively encouraged the development of third-party apps by giving developers broad access to the personal data of tens of millions of users. The data inadvertently fell in the hands of consulting firm Cambridge Analytica, which used it to provide analytical assistance to Donald Trump’s 2016 presidential campaign. Facebook was hit with a record $5 billion fine in 2019, the largest civil penalty ever imposed on a company for violating consumers’ privacy (Global Data System, 2023).

2. Black Basta attack on Capita: Capita an out-sourcing group that runs services for the NHS, councils and military in the UK had its Microsoft Office 365 software hacked and had the personal data of staff and clients “exfiltrated”. While Capita had claimed that less than 0.1% of its server estate was accessed, the company experienced a financial loss of approximately USD 85 million and its shares fell by more than 12% (The Guardian, 2023).

3. Equifax Data Spill: In 2017, Equifax, one of the largest credit reporting agencies in the U.S, suffered a data incident that spilled the personal information including Social Security numbers of 147 million people. The incident was attributed to human error and a failure to implement system updates.  The company agreed to a global settlement of up to $425 million to help people affected by the incident (Federal Trade Commission (2024).

Causes of Data Spill

Data spill can occur in different ways ranging from human error to system malfunction and failings in security protocols. Here are specific reasons confidential data may be erroneously exposed to an unintended environment:

1. Human Error: This is the case where an individual accidentally sends confidential data to a wrong recipient or uploads such data to a public server, mishandles access permission, or fails to correctly classify sensitive data, thereby subjecting the data to unscrupulous activities.

2. Improper Data Disposal: Data is leaked and recoverable by unauthorized persons when they are not securely disposed. Organizations must develop a secure disposal process to prevent data from being accessed illegitimately.

3. Systems Failure: When computing and data storage systems malfunction or are not properly configured, there is the possibility of exposing data into an unintended environment. Poorly configured databases are one of the common causes of large-scale data spills in the U.S. (IBM, 2024).

4. Device Loss: Confidential data can be accessed by unauthorized individuals when unencrypted devices such as laptops, smartphones, hard drives, and USB drives are misplaced, lost, or stolen.

5. Poor Data Encryption:  Sensitive data with poor encryption can be intercepted during transfer over unsecured networks.

6. Phishing Attack: Data spill can happen when an individual gets tricked, through fraudulent messages that appear to be from a legitimate source, into releasing confidential information like personally identifiable information (PII) and passwords.

7. Insider Threats: Disgruntled employees or contractors can abuse their access privilege to steal or expose sensitive information to either harm an organization or for personal gains.

Implications of Data Spills

Despite advancements in cybersecurity and risk management technology, data spill poses a significant threat to organizations. While crying over spilled milk may be unnecessary, a couple of tears may trickle down the face with spilled data because of its consequences. For instance, Target Corporation faced multiple lawsuits after a data spill led to the theft of 40 million credit/debit records and 70 million customer records in 2013. The implications of an inadvertent exposure of data can be quite dire. Here are some effects of data spill:

1. Financial Penalties: Regulations such as the GDPR (General Data Protection Regulation) in Europe and the Health Insurance Portability Accountability Act (HIPAA) in the USA explicitly state how data must be managed to ensure their protection. When data spill, which runs foul of regulations, occurs, organizations risk paying heavy fines. Financial losses are also incurred through recovery costs

2. Reputational Damage: Individuals entrust their personal information to organizations for different purposes because of the confidence they repose in them. When this data is leaked, trust is broken and organizations involved suffer reputational damage. Companies like Equifax and Facebook have faced significant reputational damages following their data spill incidents.

3. Legal Consequences: Data spill is often greeted by class-action lawsuits filed by victims. Non-compliance with regulations on data security attract legal sanctions.

4. Fraudulent Activities: Exposed data often becomes accessible to fraudsters who exploit sensitive information such as credit card details and medical records to perpetrate nefarious actions such as identity theft, fraud or even sell on the dark web.

5. Competitive Disadvantage: Spilled data puts organizations at a risk when competitors access such information which may include business information and proprietary details. This can also lead to devaluation of market worth, loss of intellectual property, and operational disruption in affected organizations (Digital Guardian, 2024).

How to Prevent Data Spills

Organizations must develop a strategic and robust data security approach for data protection and regulatory compliance to prevent data spill and other forms of data breach. These are some strategies to prevent data spill and its consequences:

1. Strict Access Control: Restricting access to certain data sets to only authorized persons will prevent incidents of data exposure. Organizations can implement the multi-factor authentication (MFA) to protect sensitive accounts and the Active Directory for role-based access control (RBAC). Adherence to the principle of least privilege will also ensure that employees have access to only the data they need to do their jobs

2. Employee Training: Regular training of staff on cybersecurity will ensure each employee understands and performs their role in protecting data from the mishandling and its consequences. Regular refresher training will also keep employees updated on new threats and how to mitigate them.

3. Data Encryption: This is a regulatory requirement in many organizations. Secured encryption of data ensures that even in the case of an inadvertent exposure of data, it cannot be easily read or understood without the correct decryption keys if it falls into wrong hands

4. Cloud Storage Security: Data spill can be averted when cloud storage systems are regularly audited and well-secured. Penetration testing and compliance checks enable the detection of vulnerabilities that could lead to data spill.

5. Proper Data Disposal: A proper and secure disposal measure should be established for proper disposal of outdated data to prevent unauthorized recovery. For instance, data-wiping tools that comply with regulatory standards can be used to wipe devices of unnecessary and outdated data .

6. Secure Physical Devices: Unencrypted devices such as laptops, smartphones, hard drives, and USB drives must be well-secured to prevent theft or loss. Device tracking capability can be enabled on company-issued devices for device recovery. The use of personal devices for handling sensitive data should also be prohibited to prevent data spill.

7. Data Classification and Auditing: Labelling and regular auditing of data are important steps to organizing and safeguarding data. Data spill is prevented when data is categorized based on sensitivity and significance (Parachute, 2023).

Components of Data Spill Management

Effective data spill management includes a multifaceted approach that enables the prevention of related incidents. These are components of handling data spill:

1. Detection: This involves identifying a data spill incident either through activity reports, routine checks, alert systems, and proactive monitoring strategies.

2. Containment: This involves isolating and mitigating the spread and impacts of the spill to reduce further potential damages often by taking systems offline or restricting access.

3. Analysis: Assess what data is leaked, how and where it has been leaked, who might have accessed it, as well as the impact of the data spill.

4. Remediation: This involves the recovery or deletion of data from an unauthorized environment. It also involves organizations working with data owners for an amendment plan.

5. Prevention: Based on an evaluation of a spill, proactive preventive measures should be established to prevent further data spills. Proper measures include regular cybersecurity training for employees and data security systems upgrades.

Conclusion

Preventing data spills is fundamental to building a reputable and secure business. However, while preventive measures can be established to avert data spills, the unexpected can happen. As digital technology continues to evolve, so do the risks associated with data. Hence, organizations should without fail have a proactive approach to data security including a well-defined incident response strategy such as data loss prevention solutions that will ensure an effective management of data spill if it happens.

Telliswall Inc. understands the significance of cybersecurity, so, we go all the way to protect your data from data spills. Our secure collaboration tool and multi-faceted data protection solution help to safeguard your data from any form of compromise, uphold your reputation, and avoid the consequences of regulatory non-compliance.

References

Digital Guardian (2024). What Is a Data Spill? How to Prevent and Manage It https://www.digitalguardian.com/blog/what-data-spill-how-prevent-and-manage-it

Federal Trade Commission (2024). Equifax Data Breach Settlement                                  https://www.ftc.gov/enforcement/refunds/equifax-data-breach-settlement

Global Data System (2023). Data Spillage: What It Is and How to Prevent It https://www.getgds.com/resources/blog/cybersecurity/data-spillage-what-it-is-and-how-to-prevent-it

IBM (2024). Cost of a Data Breach Report 2024               https://www.ibm.com/reports/data-breach

Inedo Security Lab (2023). Target Data Breach (2013) – Technical, Financial, and Legal Analysis                                                                https://security.inedo.com/library/incidents/Target-2014

Parachute (2023). What Is Data Spillage and How Can You Prevent It? https://www.getgds.com/resources/blog/cybersecurity/data-spillage-what-it-is-and-how-to-prevent-it

Tech Republic (2023). White Hat Hackers Discover Microsoft Leak of 38TB of Internal Data Via Azure Storage https://www.techrepublic.com/article/microsoft-internal-data-leak-azure/

The Guardian (2023). Cyber-attack to cost outsourcing firm Capita up to £25m https://www.theguardian.com/business/2023/aug/04/cyber-attack-to-cost-outsourcing-firm-capita-up-to-25m