Data Loss Prevention (DLP) in SharePoint Online is a security feature within Microsoft 365 Compliance that helps organizations prevent accidental or intentional data leaks. DLP policies allow administrators to identify, monitor, and protect sensitive information—such as credit card numbers, Social Security numbers, and financial data—ensuring compliance with regulations like GDPR, HIPAA, and PCI-DSS.
This guide explains how DLP works in SharePoint Online, how to configure policies, and best practices for securing sensitive data.
1. How Does DLP Work in SharePoint Online?
DLP policies help protect sensitive data in SharePoint Online by:
✔ Identifying confidential information using built-in templates (e.g., financial data, health records, or personally identifiable information).
✔ Preventing accidental sharing of sensitive files with unauthorized users.
✔ Applying security actions such as blocking access, encrypting files, or notifying administrators.
✔ Enforcing compliance policies by integrating with Microsoft Purview (Compliance Center).
2. Key Features of DLP in SharePoint Online
🔹 Pre-Built DLP Templates – Microsoft provides industry-specific policies for compliance regulations.
🔹 Custom DLP Rules – Admins can create custom policies to fit business needs.
🔹 Real-Time Alerts & Reports – Track data breaches and policy violations in the Microsoft Compliance Center.
🔹 File Encryption & Access Restrictions – Automatically restrict access to sensitive documents.
🔹 User Notifications – Educate users when they attempt to share restricted content.
3. How to Create a DLP Policy in SharePoint Online
Step 1: Access the Microsoft Purview Compliance Center
- Sign in to the Microsoft 365 Compliance Center (https://compliance.microsoft.com).
- Click Data Loss Prevention under Solutions.
- Select Policies → Click Create a Policy.
Step 2: Choose a DLP Policy Template
- Microsoft offers pre-configured templates for:
- Financial data (e.g., credit card numbers, bank account details).
- Medical and health records (HIPAA compliance).
- Personal data (GDPR, PII, and national ID numbers).
- Choose a template or create a custom policy.
Step 3: Define the Locations to Apply the Policy
- Select where the DLP policy will apply:
- SharePoint Online sites
- OneDrive for Business
- Exchange Online (Emails)
- Teams messages
- Choose specific SharePoint sites or apply it across all SharePoint content.
Step 4: Configure Policy Rules
- Select the sensitive information types to detect (e.g., passport numbers, SSNs).
- Define conditions:
- If content contains sensitive data AND
- Is shared with external users
- Set actions to take:
- Block document sharing
- Encrypt the file
- Alert the administrator
- Notify the user with a policy tip
Step 5: Customize User Notifications & Alerts
- Enable policy tips – Users get notified if they attempt to share sensitive data.
- Configure admin alerts – IT teams get notified via email when a DLP violation occurs.
Step 6: Review & Activate the Policy
- Test mode first – Run the policy without enforcing it.
- Review results in Microsoft Purview Reports.
- If everything works, turn on the policy.
4. Monitoring and Managing DLP Policies
🔹 View DLP Reports:
- Go to Microsoft Purview Compliance Center → Click Reports → Data Loss Prevention.
- Check violations, blocked files, and user activities.
🔹 Edit Existing DLP Policies:
- Navigate to Data Loss Prevention → Policies → Select a Policy → Edit Policy.
- Update sensitive information types, rules, or enforcement actions.
🔹 Respond to DLP Alerts:
- Go to Microsoft Defender Security Center → DLP Alerts Dashboard.
- Investigate policy violations and take action.
5. Best Practices for Implementing DLP in SharePoint Online
✔ Start with Audit Mode – Before blocking access, run policies in test mode.
✔ Use Sensitivity Labels – Combine DLP with Microsoft Information Protection (MIP) for advanced security.
✔ Educate Employees – Train users on company data protection policies.
✔ Regularly Review Policies – Update DLP rules based on compliance changes.
✔ Monitor External Sharing – Limit sharing only to approved domains.
✔ Use Conditional Access Policies – Restrict sensitive data access to trusted devices or locations.
Final Thoughts
DLP in SharePoint Online helps organizations secure sensitive information, prevent data leaks, and enforce compliance. By implementing DLP policies, companies can safeguard financial, health, and personal data while allowing safe collaboration.
🔹 Set up DLP policies to detect and protect sensitive content.
🔹 Monitor policy violations using Microsoft Purview reports.
🔹 Educate users with policy tips and enforce conditional access.
By following these best practices, organizations can strengthen their SharePoint Online security and prevent data loss effectively.