One of the biggest cyber threats organizations must contend with today is data exfiltration attacks — by insiders or external hackers. These are perpetrated by employees with access to trade secrets or intellectual property who use their legitimate user credentials to move valuable data to personal devices or other external servers. Data exfiltration can funnel trade secrets to competitors, cause regulatory violations, or lead an organization into financial harm.
What is Data Exfiltration?
Data exfiltration, also known as data exportation or data extrusion, is the unauthorized movement of sensitive company data outside of the organization’s secure environment. This involves transferring confidential information — such as customer details, financial records, trade secrets, and intellectual property — beyond the company’s control and security protocols, making it vulnerable to unauthorized access and potential misuse.
Every company possesses valuable proprietary information stored within its corporate networks. While high-profile cyber attacks like phishing and ransomware attacks often grab headlines, data exfiltration represents a constant and potentially more insidious threat. Malicious actors may employ various tactics to achieve their goals, including exploiting system vulnerabilities, abusing authorized access, or utilizing social engineering techniques like phishing emails.
Data exfiltration can have severe repercussions for organizations, including:
- Disrupted operations: Loss of valuable data can bring business to a halt.
- Reputational damage: Customers lose trust in companies that fail to protect their information.
- Financial losses: Recovering from a data breach can be costly, involving investigations, legal fees, and regulatory fines.
- Legal and compliance issues: Failing to protect sensitive company data can violate privacy laws and regulations, such as those concerning personally identifiable information (PII).
Therefore, preventing data exfiltration is paramount for maintaining business continuity, complying with regulations, and safeguarding intellectual property.
Types of Data Exfiltration Techniques and Attack Vectors
Data exfiltration comes in many forms, and it’s not always a dramatic hack. Sometimes it’s as simple as an employee mistakenly emailing a sensitive file to their personal account. Other times, it’s a disgruntled insider deliberately leaking data to a competitor. Then, sophisticated attacks are carried out by external actors who exploit vulnerabilities to steal valuable information.
Unintentional Exfiltration by Employees
Rather than blunt external attacks, an internal threat actor or negligent employee may simply move data from corporate cloud services to a personal mobile device. An insecure device that lacks the same security controls as a corporate one may become the target of a cyberattack, thereby exposing company data.
A typical insider threat example is employees using easy-to-hack passwords on their personal subscriptions and profiles, only for that cracked password to allow unprivileged access to professional files.
Intentional Malicious Insider
A malicious insider threat may choose to attack their employer for financial gains or as an act of retribution. A disgruntled or compromised company insider with access to source code, physical access to servers, or login credentials for sensitive systems is a significant security threat to an organization. For example, an employee moonlighting for a competitor might export customer data to help their new company steal customers from your company.
With valid user credentials and legitimate access to critical assets, exfiltration efforts may be straightforward for a malicious insider.
Hackers Gain Access to Target Machines
External attacks take many forms, from phishing to social engineering. Many seek to exploit or manipulate insiders, but sometimes cybercriminals simply gain access to company resources with malicious code.
Over a period of time, they can exfiltrate data to external servers without being detected.
Cloud Apps and Databases
One of the most persistent threats that organizations face is the security of third-party vendors and services. If you have a range of employees, contractors, and third-party users accessing cloud services and apps, it can be more challenging to assess potential threats properly.
With many users uploading, downloading, and moving data around corporate databases and cloud services, some exfiltration may get overlooked.
Exfiltration of Data Through Removable Storage Media
One of the most common data exfiltration techniques is simply loading data onto a thumb drive and walking out of the building.
Many executives who were poached by competitors or left companies to find their own have gotten into trouble for exfiltrating data from their original companies and using it to further their ambitions. The insider threat example of Uber vs. Google remains one of the most prominent examples of this method.
Email Data Exfiltration
An outbound email from a negligent employee is a common form of data exfiltration. The employee may send a valuable file to a personal device to work on at home or share it with someone outside the organization for feedback or advice.
This common form of data exfiltration is usually an innocent mistake, but it can nonetheless have significant consequences. Beyond these methods, attackers are constantly developing new and sophisticated techniques to evade detection. These include:
- Anonymizing connections to servers: Hiding their true location and identity.
- DNS, HTTP, and HTTPS tunneling: Disguising data exfiltration as legitimate network traffic.
- Direct IP addresses: Bypassing security measures by connecting directly to external servers.
- Fileless attacks: Executing malicious code without leaving a trace on the system.
- Remote code execution: Taking control of systems remotely to steal data or install further malware.
How to Detect Data Exfiltration
Detecting data exfiltration can be like finding a needle in a haystack. Attackers use increasingly sophisticated methods to blend their malicious activities with normal network traffic, making it difficult to spot them before they cause significant damage.
Unfortunately, traditional security measures often fall short:
- They rely on recognizing known threats: This fails to identify new and evolving attack techniques.
- They may generate excessive alerts: Overwhelming security teams and making it harder to pinpoint real threats.
- They lack real-time analysis: This allows attackers to slip through the cracks and exfiltrate data before detection.
To effectively detect data exfiltration, organizations need a multi-layered approach that combines technology and human expertise. This involves leveraging a variety of tools and techniques to monitor network activity, analyze user behavior, and identify anomalies that could indicate data exfiltration.
Essential Technologies for Data Exfiltration Detection
- Intrusion Detection Systems (IDS): These systems monitor network traffic for suspicious patterns and known threats, alerting security teams to potential intrusions. Modern IDS solutions leverage machine learning and behavioral analytics to identify anomalies and reduce false positives. These often work in conjunction with firewalls to provide comprehensive network protection.
- Malware Analysis Tools: Static and dynamic malware analysis helps understand the nature of a threat and its potential impact on systems and data.
- Network Monitoring Tools: These tools track network traffic patterns, identify unusual spikes in outbound traffic, and flag suspicious activities like large file transfers or unauthorized access to sensitive data.
- Data Loss Prevention (DLP) Solutions: DLP systems actively monitor and control the movement of sensitive data, preventing unauthorized access and exfiltration attempts. Advanced DLP solutions can identify and block attempts to transfer data to unauthorized cloud storage or removable media.
- User and Entity Behavior Analytics (UEBA): UEBA tools establish a baseline of normal user activity and detect deviations that could indicate malicious intent, such as unusual login patterns, access to sensitive data outside of normal working hours, or unexpected lateral movement within the network.
The Human Element
While technology plays a crucial role in detection, human expertise remains essential for effective data exfiltration prevention.
- Security analysts: Skilled analysts play a critical role in investigating alerts, analyzing suspicious activities, and determining the root cause of security incidents. Their ability to correlate data from multiple sources and understand the context of events is invaluable in identifying and mitigating data exfiltration attempts.
- Threat hunters: Proactive threat hunting involves actively searching for threats that may have evaded traditional security measures. Threat hunters leverage their expertise and knowledge of attacker tactics to identify and neutralize threats before they can cause significant damage.
Key Detection Methods
In addition to the technologies mentioned above, organizations should employ specific detection methods to identify common data exfiltration techniques:
- Monitoring DNS queries: Analyzing DNS traffic for suspicious queries can reveal attempts to establish command-and-control communication or exfiltrate data through DNS tunneling.
- Analyzing outbound email traffic: Scrutinizing outgoing emails for large attachments, sensitive data patterns, unusual encryption, and unauthorized recipients can help identify attempts to steal data through email.
- Tracking file access patterns: Monitoring file access logs for unusual activity, such as mass downloads, access to sensitive data by unauthorized personnel, or access from unusual locations, can uncover potential data exfiltration attempts.
Data Exfiltration Prevention
Preventing data exfiltration requires complete organizational buy-in. Using an employee monitoring solution and ensuring employees have the proper security training and awareness will help create a secure culture of accountability. A provider like Teramind offers robust insider threat detection tools and employee monitoring solutions to build a stronger, more secure workplace.
User Activity Monitoring
Monitoring what your employees are working on isn’t just a good cybersecurity practice; it’s a smart way to incentivize performance and improve productivity. Regarding data exfiltration, user activity monitoring keeps real-time tabs on in-office and remote employees’ work.
You don’t have to monitor every little click employees make (in fact, you probably shouldn’t if you want to build trust). However, you can set up smart automated alerts with employee monitoring software to let you know when data exfiltration occurs. You can mark it as acceptable or take action immediately as soon as it happens.
You can also leverage remote desktop control (RDP) to stop exfiltration in real-time.
Use a Data Loss Prevention Solution
Data Loss Prevention (DLP) is the security practice of preventing data breaches, exfiltration, or unwanted destruction. With a DLP solution, you can monitor potential threats and mitigate exfiltration incidents before they occur. Not only will a DLP solution help prevent data exfiltration, but it can also avoid compliance violations.
Teramind offers robust DLP that leverages machine learning to learn employee work patterns actively, recognize abnormal behavior, and alert you before fraud, negligence, or other misconduct occurs.
Implement Insider Threat Detection Software
Insider threat detection software provides robust, real-time, always-on analysis of security threats. With automated incident response and contextual user monitoring, security teams will have insight into suspicious user activity and a greater ability to prevent intentional and unintentional data exfiltration. Monitoring remote desktops is also easier this way.
Insider threat software can intercept suspicious email activity, block outbound emails containing sensitive data, prohibit file uploads to vulnerable external servers or personal devices, monitor app usage, prevent file transfers via Slack/Teams, and much more.
With intelligent risk assessment, security leaders can actively monitor potentially risky individual behavior, identify emerging security incidents, and patch up vulnerable systems.
Endpoint Detection & Response Solutions
Every device connecting to your organization’s network represents a new endpoint for data to originate or be stored. Your employees may have varying levels of cybersecurity proficiency, meaning data stored on personal devices may be particularly vulnerable.
Endpoint detection and response solutions provide a centralized dashboard to monitor devices on the network. With user activity monitoring and intelligent risk assessment, such solutions can permit security teams to step in as security incidents emerge. Solutions may include file transfer and endpoint monitoring, keystroke logging, website monitoring, and more features to identify potentially risky activity on dispersed devices.
Access Management & Authentication
Strong access management and authentication are among the most critical components of any corporate security policy. Two-factor authentication is now standard at large companies and is required at 87% of companies with over 10,000 employees. Smaller organizations, however, need more robust access management and authentication solutions.
Employee monitoring solutions can help implement strong access management and authentication protocols that ensure only those with the correct privileges can access the most valuable and sensitive assets. This aligns with the principles of zero trust security, where every user and device is continuously verified.
With a centralized system, security teams can control access privileges, properly authenticate users and devices attempting to access the network, and receive real-time alerts of suspicious activity. The system will also help employees develop better habits about changing passwords and investing in company security.
Continuous Monitoring & Incident Response
Insider threat detection software and monitoring solutions are a good first step, but any organization requires a continuous monitoring and incident response strategy. To reiterate the previous section, continuous validation is an excellent way to thoroughly vet access privileges and prevent illegitimate access to sensitive systems.
Through continuous monitoring and setting up thorough incident response protocols, your security team will know exactly what to do in any data exfiltration or security incident. Getting the entire organization’s buy-in and trust will also go a long way toward a successful continuous monitoring and incident response program.
Prevent Exfiltration and Enhance Data Security with Teramind
Data exfiltration incidents are on the rise, increasing by 39% in 2023 alone. Whether through employee negligence or malicious attacks, the consequences can be severe, impacting a company’s reputation, financial stability, and even its ability to operate.
Don’t let your organization become another statistic. Take proactive steps to prevent data exfiltration with Teramind.
Teramind offers a multi-layered defense against data exfiltration, providing the tools and insights you need to protect your valuable information. Here’s how Teramind can help:
User Activity Monitoring
Gain complete visibility into user actions across all applications and systems. Track file access, data transfers, website visits, and more to identify suspicious behavior and potential threats.
Behavior Analytics
Leverage telemetry and machine learning to establish baselines of normal user activity and detect anomalies that could indicate data exfiltration attempts. Receive alerts when users deviate from their usual patterns, such as accessing sensitive data at odd hours or downloading unusually large amounts of data.
Data Loss Prevention (DLP)
Implement granular access controls to restrict access to sensitive data based on user roles and responsibilities. Prevent unauthorized data transfers and monitor for sensitive data leaving your organization’s secure environment through email, cloud storage, or removable media.
Insider Threat Detection
Identify and mitigate insider threats through real-time monitoring, behavior analysis, and automated alerts. Detect suspicious activities like excessive data access, unauthorized privilege escalation, or attempts to bypass security measures.
Incident Response
Respond swiftly to security incidents with detailed audit trails, user activity recordings, and automated response capabilities. Investigate incidents thoroughly, gather forensic evidence, and take immediate action to contain the damage and prevent future occurrences.
Teramind goes beyond basic security measures to provide proactive protection against data exfiltration by helping you:
- Monitor user actions in real-time: Detect and prevent data exfiltration attempts as they happen.
- Identify and block suspicious file transfers: Prevent sensitive data from leaving your network through email, cloud storage, or removable media.
- Alert security teams to anomalous behavior: Receive immediate notifications of suspicious activity, enabling rapid response and mitigation.
- Provide detailed audit trails and user activity recordings: Conduct thorough investigations and gather forensic evidence in case of a security incident.
- And more.
Don’t wait for a data breach to occur. Safeguard your organization with Teramind by requesting a demo now.
FAQs
What is the difference between data exfiltration, data leaks and data breach?
These terms are often used interchangeably, but they have distinct meanings:
- Data breach: Any unauthorized access to sensitive data, regardless of whether it is viewed, copied, or removed.
- Data exfiltration: The unauthorized transfer of data from an organization’s systems to an external location. This always involves malicious intent.
- Data leakage: The unintentional exposure of sensitive data due to inadequate security practices, misconfigurations, or human error.
A data breach is the broadest term, encompassing any unauthorized access. Data exfiltration is a specific type of data breach where data is intentionally removed. Data leakage is unintentional and may not involve actual data theft.
What does exfiltrate mean in cyber security?
Cybersecurity data exfiltration refers to the unauthorized removal or extraction of sensitive data from a network or system. It involves the intentional or unintentional data transfer to a destination outside its intended location.
What is an example of data exfiltration?
An example of data exfiltration is when a malicious actor gains access to a company’s network and extracts sensitive customer information, such as credit card numbers or personal data. They may then sell this data on the dark web for financial gain or use it for other illegal activities.
Another typical example is due to negligence. An employee may simply transfer a file from a secure location to an insecure personal device, thereby increasing the risk of data exfiltration by making the file more vulnerable to external attackers.
How can we detect and prevent data exfiltration?
Organizations can employ advanced security measures such as data loss prevention (DLP) solutions, network monitoring, and encryption techniques to detect and prevent data exfiltration. Regular employee training and awareness programs can also play a crucial role in identifying and mitigating unauthorized data transfers. This includes educating employees about the evolving threat landscape and the importance of data protection.
What is the most common type of data exfiltration?
The most common type of data exfiltration is through email transmission, where attackers or negligent actors send sensitive information to external recipients. Malicious insider threat actors may disguise these emails as legitimate communications to bypass security measures. Regular employee training and implementing email security solutions can help mitigate this risk.
What are the signs of data exfiltration?
Signs of data exfiltration include unusual network activity, large data transfers to unknown destinations, unexpected system slowdowns, and unauthorized access to sensitive files. Monitoring network traffic, implementing intrusion detection systems, and conducting regular security audits can help detect and prevent data exfiltration.
What is the opposite of exfiltration?
The opposite of data exfiltration is data infiltration. While data exfiltration involves the unauthorized removal of sensitive information, data infiltration refers to unauthorized access and insertion of data into a network. Preventing data exfiltration and data infiltration requires robust security measures and regular monitoring.
