Report: Digital Espionage and Innovation: Unpacking AgentTesla

Search
Close this search box.

Microsoft 365 Data Loss Prevention: Setup, Policies, Benefits, and More!

Managing and Safeguarding data is becoming more complex with more cyber threats piloting daily. Organizations are facing constant risk of accidental errors or intentional hacking of sensitive information.
Cyber enthusiasts have come up with a one-stop solution to prevent any such damage to data, known as Data Loss Prevention solutions or DLP. It is a crucial tool in the battle of keeping data safe and mitigating any risk. Before diving into Microsoft Data Loss Prevention, you need to understand what exactly DLP is:

What is Data Loss Prevention?

Data Loss Prevention is a set of tools and strategies produced to prevent any data breach by monitoring the real-time inflow and outflow of data. DLP diminishes the risk of negligence or deliberate sabotage, as any attempt to leak some confidential information is blocked.

There are some good DLP tools in the industry, such as Fidelis Data Loss Prevention Security and then there are also integrated tools that come with software and cloud storage. One of those tools is created by Microsoft known as Microsoft 365 Data Loss Prevention. Let us explore this in more detail:

What is Microsoft 365 Data Loss Prevention

Microsoft 365 Data Loss Prevention is a security feature integrated with the Microsoft 354 suite, it safeguards data from breach and negligence.

As Microsoft 365 features several services such as SharePoint Online, OneDrive for Business, Microsoft Teams, and many more, as a result, the company using any of the services above needs a specialized solution to avoid data loss. Data security is taken into consideration when designing this function.

This preserves the integrity of the organization and guards against unwanted usage and unlawful access to data.

How Does Office 365 Data Loss Prevention Work? ​

Microsoft 365 DLP enables you to:

Identify Sensitive Information: DLP in Office 365 has the ability to identify and analyze sensitive data. It has predefined templates to match with specific types of data and organizations can also customize sensitive information types to keep them safe.

Monitor Data in Real-Time: Just like any other Data Loss Prevention tool, DLP in Microsoft 365 monitors the content and ensures that content is only shared and accessed by authorized users and that all IT policies are adhered to.

Enforce Data Protection Rules: Along with identifying sensitive data, Microsoft DLP also restricts the free transfer of data and requires justification for sharing and alerting users.

Generate Alerts and Reports: This tool also assists the cyber security team by alerting them of any potential danger and creating comprehensive reports on policy violations, if any.

How to Setup Microsoft Office 365 Data Loss Prevention

Configuring Microsoft Office 365 DLP may look and sound difficult, but the setup process is quite simple. Below is a step-by-step guide to setting up the DLP:

Pre-setup

To set up Microsoft 365 DLP, the organization needs to map workflow to determine where sensitive data is required which can result in leakage, and then, figure out policies and implement it to detect any data breach.

Access the Microsoft 365 Compliance Center

  • Login to Office 365 Administrator account.
  • Go to the Compliance Center in the left navigation and then select Data Loss Prevention
  • Click on the Policies tab to create a new policy

Create Policy

On the Policies tab, click on Create a new policy and then choose a predefined template or create a custom policy. Microsoft has 3 categories of predefined DLP policies: Financial, Medical and Health, and Privacy.

While creating the policy, customize the rules and actions which will be translated into policy violation. After creating the policy specify the locations (email, SharePoint, OneDrive) where the policy will be applied.

Set Up Notifications and Alerts

Configure notifications and alerts to notify the cyber security team and administrator in case of any policy violation.

Also, send a notification to the user to explain why the action is blocked.

Review and Apply the Policy

Once configured, review the DLP policy and then click on “Create” to implement the policy.

Monitor and Refine the Policy

After implementing, keep an eye on the policy to check its effectiveness. Regular testing of policy is recommended to adjust rules, if necessary.

By following the steps above, one can easily and effectively configure Microsoft 365 DLP and protect their organization’s digital assets

Microsoft 365 DLP Best Practices

Setting up is just the first step to implementing Microsoft Office 365 Data Loss Prevention. Organizations need an insightful understanding of their policy to tap into its full potential.

Here are some best practices for Microsoft Officer DLP:

Understand Your Data: After a comprehensive data inventory, identify and classify your organization’s sensitive data so you can tailor your policies according to your company’s requirements.

Leverage Available Features: Use features available such as built-in templates as this will not only save you time and effort but also in compliance with laws and regulations.

Regular Audits: Data threats are evolving with time and so should your policy. Continuous monitoring, keeping track of feedback, and regular audits can help in understanding the effectiveness of policy so you can update it, when necessary.

Employee Training: Educate employees as they will be the ones complying with these policies and their work will be most impacted. The training should also include the importance of data security to create awareness.

Benefits of Microsoft 365 DLP

Microsoft DLP is designed after extensive research by security experts and boasts various benefits for organizations. Some of those benefits include:

Data protection: Microsoft 365 DLP offers panoramic data protection with its range of services. The tool protects data in all formats when it is created, when it is stored in the cloud or drive, or when it is shared through team or email.

Compliance with Regulations: The pre-defined templates on DLP Office 365 are created after meticulous research and comply with all regulations. This mitigates the risk of fines and penalties.

Ease of Management: The policy can be created, implemented, and managed through Microsoft 365 Compliance Center. This helps management to deploy and monitor policy with ease.

Real-time monitoring: Organizations can monitor data in real-time through the tool’s intelligent detection system. The tool can detect sensitive data with the help of information provided by the company and identify any threat to data security.

Incident Response: Microsoft 365 Data Loss Prevention tool can automatically send incident reports to management and can also take automated action such as blocking any data transfer that may be violating any policy.

Limitations of Microsoft 365 DLP

Office 365 Data Loss Prevention

While there are many benefits of Microsoft Office 365 Data Loss Prevention, this tool is not infallible. There are certain limitations due to which organizations tend to choose other third-party DLP, such as Fidelis Data Loss Prevention Solution. Those limitations that limit the solution’s capabilities are:

Limited Coverage: DLP provides predefined templates and then custom template options, but these templates are not sufficient for complex data protection. It also does not cover all file types, so some data may be left unprotected. Additionally, it also leaves non-Microsoft applications unprotected; hence you will need additional third-party DLP for full protection.

False Flags: Microsoft DLP can sometimes flag non-sensitive data, which can negatively affect the user experience, and similarly, there are instances where the tool fails to recognize the breach of sensitive data.

Policy and Rule Limit: There is a restriction on the number and size of rules and policies that hamper the creation of complex policies in large organizations. Even setting up and managing these complex policies takes a lot of time and effort and requires a deep understanding of the system.

Limited Incident Response Capabilities: In case of any data breach Microsoft does provide an automated incident alerts and action response. But the incident response capabilities are very limited while there are other third-party DLP tools that are more capable. On top of that users have an option of overriding policy with an apt justification, which enhances the risk of data breach.

Fidelis Data Loss Prevention Solution

If your organization is only using Microsoft software, then Microsoft DLP is ideal for you, but like in most cases, if you are using a mix of applications and software then your company might need a more comprehensive security tool such as Fidelis Network® Data Loss Prevention Solution.

It can protect a range of data in any given format, and its security extends across your entire network. It is equipped with advanced threat detection technology that can find data breaches through sophisticated data exfiltration attempts and initiate responses such as alerting teams and blocking unauthorized access.

Unleash Next-Level Data Protection
Discover how Fidelis Security can help your organization protect sensitive data!

Frequently Ask Questions

How can I know that a DLP Policy has been triggered?

There are three indicators that show that Microsoft 365 DLP policy has been triggered:
  • Admin Alert: Admin will receive an alert from Office 365 DLP about any policy violation.
  • User Notification: The user will receive a notification that they are violating the data privacy policy (simultaneously, their action will be blocked)
  • Incident Report: The DLP report in the compliance center will have a record of the DLP trigger for further investigation.

What role does encryption play in preventing data exfiltration?

Encryption is a code language that is used when data is at rest or is in transmission. This code language is only understood by the sender and receiver hence even if data is captured, the perpetrator will be unable to use and read the same.

Local laws and regulations state that sensitive data and information shall be encrypted. Hence, data encryption not only prevents exfiltration but also prevents organizations from hefty lawsuits.

What license is required for Microsoft 365 DLP?

To use Microsoft 365 DLP, one needs to have a minimum of Office 365 Enterprise E3 or Microsoft 365 E3 license. Organizations can also choose advanced office DLP featured in higher-tier licenses such as Office 365 Enterprise E5 or Microsoft 365 E5.
For small and medium-sized businesses, Microsoft 365 Business Premium also offers basic DLP with basic features.

About Author

Kriti Awasthi

Hey there! I'm Kriti Awasthi, your go-to guide in the world of cybersecurity. When I'm not decoding the latest cyber threats, I'm probably lost in a book or brewing a perfect cup of coffee. My goal? To make cybersecurity less intimidating and more intriguing - one page, or rather, one blog at a time!

Related Readings

One Platform for All Adversaries

See Fidelis in action. Learn how our fast and scalable platforms provide full visibility, deep insights, and rapid response to help security teams across the World protect, detect, respond, and neutralize advanced cyber adversaries.