The Top 5 Causes of Data Loss and How to Address Them

Addressing Data Loss

Data loss is one of the most expensive and disruptive events a business can face. It can stop operations in their tracks, damage customer trust, and lead to costly legal or compliance issues.

The good news is, most data loss incidents are preventable — if you know what to watch for and how to respond. Here are the top five causes of data loss, explained in plain English, along with practical steps to protect your business.

The Top 5 Causes of Data Loss

1. Human Error

Accidentally deleting files, sending sensitive information to the wrong recipient, or overwriting the wrong document happens more often than most leaders realise.

How to address it:

  • Provide regular staff training on secure data handling

  • Use Data Loss Prevention (DLP) tools to flag or block risky actions

  • Implement version control and automated backup systems

2. Cyber Attacks

Ransomware, phishing scams and malware are designed to steal, encrypt or destroy data — sometimes without being detected until it’s too late.

How to address it:

  • Keep software and systems patched and up to date

  • Use multi-factor authentication to protect logins

  • Run regular security awareness training for staff

  • Maintain secure, offline backups for recovery

3. Zero Day Hardware & Software Vulnerabilities

Sometimes the problem isn’t that hardware or software is old — it’s that a flaw no one knew about has just been discovered and exploited. These “zero-day” vulnerabilities can lead to data loss before a patch is available.

How to address it:

  • Maintain a threat monitoring capability to detect emerging vulnerabilities early

  • Apply security updates as soon as they’re released

  • Use network segmentation to limit the damage from any single exploit

  • Have a tested backup and recovery process in place for fast response

4. Insider Threats

Not all data loss comes from outside. Employees, contractors or partners can intentionally or unintentionally compromise sensitive information.

How to address it:

  • Apply strict access controls based on job roles

  • Monitor data access logs for unusual activity

  • Use DLP tools to detect and prevent unauthorised transfers

5. Compromised Third-Parties

Vendors, suppliers or service providers with weak security can be a back door into systems — and if they’re breached, data could be exposed.

How to address it:

  • Conduct regular supplier risk assessments

  • Include security requirements in contracts and procurement processes

  • Limit the data shared with third parties to only what’s necessary

  • Monitor for unusual data access by external partners

The Business Case for Proactive DLP Protection

  • Preventing data loss is always cheaper than recovering from it. By combining strong policies, reliable technology and a culture of security awareness, you can dramatically reduce your risk — and position your business to recover quickly if the worst happens.

Where to Start With DLP

A strong DLP program begins with:

  1. Data discovery — identifying where sensitive data lives and who can access it

  2. Risk assessment — understanding how data could be lost or stolen

  3. Policy creation — setting rules for how data should be handled

  4. Technology implementation — deploying DLP tools to enforce those rules

  5. Monitoring and review — ensuring the system works and evolves with your business needs

Approaching DLP

Cyber Wyze offers Managed DLP Services that combine policy design, technology deployment and ongoing monitoring to protect your data without disrupting business operations. We work with you to:

  • Discover and classify sensitive information

  • Develop practical policies aligned to your compliance needs

  • Deploy DLP controls across devices, networks and cloud platforms

  • Provide real-time monitoring, reporting and response

Looking for help?

Cyber Wyze DLP Solutions