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July 29, 2024
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6
 min read

Everything to Know About Automated Data Classification Tools in 2024

Discover the A-Z of automated data classification tools in 2024. Our guide helps you choose the best solutions to organize and secure your data efficiently.

Everything to Know About Automated Data Classification Tools in 2024

TL;DR

  • Automated data classification tools enhance efficiency, security, and compliance by categorizing data based on content and context.
  • They utilize machine learning and natural language processing for accurate and consistent data labeling.
  • Key benefits include faster insights, reduced human error, and improved data governance and collaboration.
  • Automated tools ensure data protection and regulatory compliance, supporting proactive risk management.
  • Strac offers comprehensive solutions with built-in and custom detectors, seamless integration, and AI-powered accuracy to provide a robust data management and security system.

As organizations accumulate vast amounts of data, their exposure to security breaches and compliance challenges escalates. The first crucial step in effectively mitigating these risks is gaining visibility into data locations, access permissions, and usage patterns. 

This foundational understanding is essential for implementing a robust data protection strategy. A Verizon study found that companies with fewer than 1,000 employees are the target of 46% of all cyber breaches worldwide. Thus, pinpointing this information can take much work for enterprises with extensive data volumes. 

This is where data classification software steps in, becoming irreplaceable for organizations that want to keep their businesses safe. Automated data classification tools have become essential, helping organizations categorize and label data based on its content and context.

This comprehensive guide explores all aspects of automated data classification, including best practices, tools, and critical elements such as analysis, contextual evaluation, predefined classification levels, and more. 

Let's begin.

What is Automated Data Classification? 

Automated data classification involves categorizing data based on its content and contextual information. This process involves using advanced technologies, such as machine learning and natural language processing, to analyze the data and assign it to predefined classification levels or categories.

The key aspects of automated data classification include:

1. Content Analysis: The system examines the actual content of the data, including text, images, and other media, to determine its subject matter, sensitivity, and relevance.

2. Contextual Evaluation: The system also considers the context in which the data is created, stored, and used, such as the application, user, location, and time, to refine the classification further.

3. Predefined Classification Levels: The organization establishes a set of data classification levels, such as public, internal, confidential, and restricted, based on factors like sensitivity, compliance requirements, and business criticality.

4. Automated Categorization: The system automatically assigns the data to the appropriate classification level based on the content and contextual analysis, eliminating the need for manual classification.

5. Continuous Monitoring: The automated classification process is ongoing, with the system continuously monitoring and updating the data's classification as new information or changes occur.

Automating the data classification process brings significant benefits to organizations. It enhances:

  • Efficiency
  • Data security
  • Compliance with regulations and
  • Effective data governance.

This approach is instrumental in identifying and protecting sensitive information while allowing for flexible management of less critical data.

10 Reasons Why Automated Data Classification is Important

A data-driven business environment today demands improved efficiency, security, compliance, and overall data management capabilities. Here are ten reasons why automated data classification is essential for modern businesses.

1. Improved Efficiency 

Automated data classification tools leverage machine learning algorithms to process and categorize vast datasets swiftly. This capability accelerates data handling processes, enhancing overall operational efficiency.

2. Enhanced Data Accuracy and Consistency

By automating the classification process, these tools ensure that data is uniformly labeled and categorized according to predefined policies and industry standards. This reduces the potential for subjective errors and inconsistencies in data management.

3. Better Data Security and Compliance

Automated classification systems enable organizations to enforce appropriate security measures and adhere to regulatory requirements. They can automatically identify sensitive data and apply robust security controls to protect it from unauthorized access and breaches.

4. Scalability

Unlike manual methods, automated data classification tools are scalable and can adapt to handle increasing volumes of data and evolving business needs. This scalability ensures that organizations can maintain effective data management practices as they grow.

5. Reduced Human Error

Automation minimizes the risk of human error in data classification tasks. By eliminating manual intervention, organizations improve data integrity and reduce the likelihood of inaccuracies that could impact decision-making and operations.

6. Increased Productivity

By automating repetitive data classification tasks, employees can allocate their time and skills to more strategic initiatives. This boosts overall productivity and allows teams to focus on activities that drive business growth and innovation.

7. Better Risk Management

Automated classification systems help organizations identify and mitigate risks associated with sensitive data. By proactively managing data security and compliance risks, businesses can prevent potential breaches and regulatory violations.

8. Improved Data Governance

Consistent and automated data classification supports robust data governance frameworks. It ensures that data is managed by organizational policies, regulatory requirements, and best practices, thereby enhancing overall data governance and control.

9. Enhanced Data Visibility

Automated tools provide centralized visibility into an organization's data landscape. This comprehensive view enables stakeholders to analyze data trends, identify opportunities, and make informed decisions that drive business outcomes.

10. Compliance with Regulatory Requirements

Automated data classification ensures that sensitive data is properly identified, labeled, and managed in compliance with industry regulations such as GDPR, HIPAA, and PCI DSS. This proactive approach helps organizations avoid penalties and reputational damage associated with non-compliance.

What are Automated Data Classification Tools?

Automated data classification tools utilize advanced techniques such as machine learning, natural language processing, and rule-based algorithms. It helps identify, label, and categorize data without requiring manual input.

These tools are designed to assist organizations in effectively managing and safeguarding their data assets. By automatically categorizing data, they support compliance, enhance security measures, and facilitate robust data governance practices. 

Some of their key functionalities include:

  • Data Discovery and Classification: The tool pinpoints sensitive data locations throughout your organization's network in real-time and categorizes this data automatically based on your business's predefined data types.
  • Continuous Operating and Monitoring: This automated approach to data classification minimizes your organization's manual effort. The software operates continuously in the background of your network, detecting sensitive data and applying your predefined classification policies as needed.
  • Content-Based Classification: This process involves deeply analyzing the contents of files to assign categories appropriately. The system can accurately determine the information's relevance and sensitivity by examining specific data attributes such as text patterns, numerical values, and image characteristics.
  • Context-Based Classification: This method, as a preset of the data automation tool, takes into account a variety of contextual elements, including:
  • Metadata
  • User profiles
  • Access history
  • Geographical location of data access

By analyzing these factors, the system can enhance the precision of data classification, reflecting the content and context in which the data is used or accessed.

  • Predefined Classification Levels: This feature allows organizations to create a structured data management framework by defining standard categories like public, internal, confidential, and restricted. These predefined levels help maintain consistency across the data environment for security measures.
  • Integration with Other Systems: Effective data classification tools, like Strac, are designed to integrate with existing data management, security, and compliance systems. This integration ensures that all platforms and repositories are synchronized and that data protections are applied uniformly across them.

Why Do We Need Automated Data Classification Tools?

Automated data classification tools empower organizations to manage their data efficiently, securely, and in alignment with business goals. Here are several reasons why automated data classification tools are essential:

1. Faster Insights and Decision-Making

Manual data classification is slow and can hinder data analysis. Automated tools, using predefined rules and machine learning algorithms, quickly categorize large volumes of data. This speed enables organizations to extract insights and make informed decisions rapidly, ensuring access to the most current information.

2. Consistent Data Taxonomy

Manual classification often leads to inconsistencies in data labeling and organization. Automated tools enforce a uniform taxonomy across the organization, ensuring data is consistently categorized based on sensitivity, content, and context. This consistency enhances data governance and makes information easier to find and use.

3. Improved Collaboration and Data Sharing

Properly classified data simplifies sharing across teams and departments. Automated classification clarifies what data can be shared and with whom, breaking down data silos and fostering more effective cross-functional workflows.

4. Proactive Risk Management

Unclassified or misclassified data increases security and compliance risks. Automated tools identify sensitive information and apply appropriate access controls and security measures. This proactive data protection approach reduces the risk of data breaches, regulatory fines, and reputational harm.

5. Streamlined Data Migration

Proper classification is crucial when moving data to new systems or the cloud. Automated tools analyze and label data correctly during migration, ensuring it remains organized and secure in the new environment. Manual classification for large-scale migrations is time-consuming and error-prone, making automation essential.

How to Automate Data Classification & Mapping?

Step 1. Develop a Data Classification Policy

Establish a clear and comprehensive data classification policy that defines the different data sensitivity levels and the corresponding handling requirements. Involve key IT, security, compliance, and business unit stakeholders to ensure the policy aligns with organizational goals and regulatory requirements.

Step 2. Integrate Automated Data Classification Tools

Implement automated data classification tools that leverage machine learning and natural language processing to analyze data content and context. These tools will categorize data according to the predefined classification levels in your policy, ensuring consistent and accurate labeling across the organization.

Step 3. Implement Automated Data Mapping Solutions

Utilize automated data mapping tools to create a centralized inventory of your organization's data assets. These solutions should be able to discover data sources, identify sensitive information, and map data flows across systems and applications. This comprehensive view of your data landscape is crucial for effective data governance and risk management.

Step 4. Gain Visibility into Sensitive Data

Leverage the automated classification and mapping capabilities to understand where sensitive data resides, who has access to it, and how it is used. This visibility is essential for implementing targeted security controls, enforcing access policies, and ensuring compliance with data protection regulations.

Step 5. Integrate with Data Governance, Privacy, and Security Programs

Seamlessly integrate the automated classification and mapping outputs with your existing data governance, privacy, and security programs. This integration will ensure that data protection measures are consistently applied based on the sensitivity level and that any changes or new data are properly classified and secured.

Step 6. Continuously Monitor for Changes

Implement continuous monitoring processes to detect and respond to data classification and mapping changes. Automated tools should be able to identify new data sources, reclassify data based on evolving business needs or regulatory requirements, and alert relevant stakeholders to potential risks or compliance issues.

Step 7. Combine Automated Classification and Mapping with Human Review

While automated tools can significantly streamline the data classification and mapping process, it is essential to maintain a human review component. Subject matter experts should: 

  • periodically audit the automated outputs
  • provide feedback for improvement, and 
  • make final decisions on complex or ambiguous cases. 

This hybrid approach ensures the accuracy and reliability of the classification and mapping results.

Types of Automated Data Classification

  1. Suggested Classification

Suggested classification balances user-based and automated classification methods. It involves scanning documents to identify themes or topics from which potential classifications are suggested.

This approach offers a faster and potentially more standardized classification process by considering factors such as the user, the content, or the document category. These suggestions are presented to the user for approval before being added to the data file, helping users understand the importance and value of their data.

  1. Prescribed Classification

Prescribed classification involves the system categorizing data without user input. Policies can be set to automatically classify data such as end-of-day sales reports and IT logs generated by software. This ensures these documents are accessible, managed, and controlled efficiently without manual intervention.

  1. User-Endorsed Classification

Automated classification offers a business significant time and accuracy benefits. However, it is highly recommended that user validation be incorporated. This approach provides flexibility to accommodate your business's unique aspects. The system suggests and adds data classification tags in user-endorsed classification, but these tags become authoritative only after user approval. This method combines automation's speed and accuracy with user oversight assurance.

  1. Automated Attachment Checking

Even when emails and documents are classified, sensitive information can be leaked through attachments. Automated attachment verification helps prevent this by checking the classifications of attached documents against the email's classification before sending.

This process can detect and notify the user of any mismatches. If the recipient is unauthorized, the attachment may be blocked from being sent, aided by Data Loss Prevention (DLP) measures. This ensures that Personal Identifiable Information (PII), budgets, and other critical data are protected from accidental exposure.

Types of Automated Data Classification Tools

When selecting an automated data classification tool, it's crucial to consider various factors. Here are some examples:

1. Financial Services Tools

Automated data classification organizes financial documents such as loan applications and tax forms, ensuring compliance with regulatory requirements.

Some of the most common uses of automated data classification tools are:

2. Folder-based Tools

The location where a document is saved can influence its automatic classification. For example, documents in your financial planning folder might automatically be classified more than those in a less sensitive folder, like a holiday schedule.

3. Storage-based Tools

Policy-defined metadata tags can be automatically applied when documents are saved to a specific drive, server, or cloud storage. This helps categorize and manage data effectively.

As organizations struggle with the ever-growing volume of sensitive data, robust and efficient data classification has become paramount. Strac, a leading automated data classification solutions provider, offers a complete suite of tools to help businesses easily navigate this challenge. 

How Strac Can Help You Enhance Your Business's Privacy, Security, and Governance?

By tokenizing and protecting sensitive data, Strac, a leading DLP solution provider, helps you mitigate the risk of data breaches and insider threats. Here’s how businesses can retrieve the best of Strac to enhance their overall privacy, security, and governance:

1. Built-In & Custom Detectors

Strac features an extensive array of built-in detectors capable of identifying a wide range of sensitive data types, including:

  • Personally Identifiable Information (PII)
  • Protected Health Information (PHI)
  • Financial Data, and
  • Intellectual Property.

These detectors are pre-configured based on industry standards, making the initial setup straightforward.

Additionally, Strac allows you to create custom detectors tailored to your organization’s unique needs, ensuring complete data protection for any sensitive information not covered by the built-in options.

2. Compliance

Strac helps maintain compliance with regulations such as

Its detectors identify data within the scope of these regulations, facilitating proper classification and protection of sensitive information. By automating the classification process and providing detailed reports, Strac reduces non-compliance risk, avoiding associated penalties, reputational damage, and legal issues.

3. Ease of Integration

Strac integrates seamlessly with various applications and platforms, including cloud storage, collaboration tools, and enterprise content management systems. This ensures consistent data classification across your organization, regardless of where data is stored.

Its API-first approach simplifies integration with existing security and governance tools, fostering a holistic data management and protection strategy.

4. Accurate Detection and Redaction

Using advanced machine learning and natural language processing, Strac ensures precise sensitive data detection, even in unstructured formats like emails, documents, and social media posts. Strac also offers redaction capabilities to mask or remove sensitive information from documents or communications, ensuring access is limited to authorized individuals only.

5. Rich and Extensive SaaS Integrations

Strac integrates with popular SaaS applications like Microsoft 365, Google Workspace, Salesforce, and Slack. These integrations ensure that data classification and protection extend across all your cloud-based tools, maintaining consistency. This reduces the risk of data breaches and ensures proper handling of sensitive information in collaborative environments.

6. AI Integration

Strac leverages Artificial Intelligence (AI) and Machine Learning (ML) to enhance data classification accuracy and efficiency. Its AI models, trained on extensive datasets, continuously improve through user feedback and evolving data patterns, ensuring increasingly accurate classification. AI integration also provides intelligent recommendations and insights, aiding organizations in better-informed data protection and governance decisions.

8. Endpoint DLP

Strac’s endpoint Data Loss Prevention (DLP) features protect sensitive data outside the corporate network. They monitor and control data usage on endpoints like laptops and mobile devices, preventing unauthorized access and data exfiltration. This capability is crucial for maintaining data security in remote work environments or when employees use personal devices.

Final Words!

As observed above, automated data classification tools are essential for businesses to manage their growing volumes of sensitive data effectively. These tools provide a vital solution to enhance operational efficiency, data security, and regulatory compliance. By leveraging advanced technologies such as machine learning and natural language processing, organizations can achieve faster insights, improved collaboration, proactive risk management, and streamlined data migration. 

Discover & Protect Data on SaaS, Cloud, Generative AI
Strac provides end-to-end data loss prevention for all SaaS and Cloud apps. Integrate in under 10 minutes and experience the benefits of live DLP scanning, live redaction, and a fortified SaaS environment.
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