Understanding Microsoft Copilot Security Risks and How to Keep Your Data Safe

Risk Management
Best Practices
4 min read
Mengdu Li
Staff Software Engineer
November 5, 2024
Author
Mengdu Li
Staff Software Engineer
November 5, 2024
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Scan for overly permissive sharing settings on files with PII, audit Copilot interactions to detect potential risks, and leverages CIS benchmarks for Microsoft O365 to support configuration hardening.

Microsoft 365 Copilot has the potential to significantly enhance productivity by leveraging AI to streamline everyday tasks and improve efficiency across workflows. However, with great power comes potential risks, particularly around data security. Here we delve into the key security risks associated with Copilot, such as oversharing sensitive information and how it can lead to data breaches and compliance challenges.

What can Microsoft 365 Copilot do for my organization?

Microsoft 365 Copilot can significantly boost productivity and streamline workflows for organizations by integrating AI into everyday tasks. It assists users by generating and summarizing content, automating repetitive tasks, and providing actionable insights.

For instance, Copilot can:

  • Draft emails based on previous communications
  • Generate reports from complex data
  • Offer instant recommendations during meetings by summarizing key points

By leveraging AI, companies can enhance collaboration, reduce manual work, and ensure smarter decision-making, ultimately driving efficiency and innovation.

How does Microsoft 365 Copilot use my organization’s data?

Microsoft 365 Copilot interacts with an organization’s data by securely accessing relevant documents and files when performing tasks in response to user prompts. It only surfaces data that individual users are permitted to access, ensuring that no unauthorized information is displayed.

Microsoft 365 Copilot adheres to strict security and compliance standards, including regulatory frameworks such as the General Data Protection Regulation (GDPR) and the European Union (EU) Data Boundary. This ensures that the organization’s data is handled responsibly, respecting privacy and compliance requirements while enabling users to work more efficiently with the information they are allowed to access.

Importantly, the data remains within the organization’s boundary and is not used to train the Microsoft 365 Copilot model, preserving privacy and data integrity. Once a user’s permission is revoked, they can no longer interact with that document through Microsoft 365 Copilot interactions.  

What is the security risk of Microsoft 365 Copilot?

The biggest security risk of Microsoft 365 Copilot comes from data oversharing, especially anonymous sharing links or links shared with everyone in an organization.

If a user shares files or information with too broad permissions, there’s a risk that sensitive data—such as PII (personally identifiable information), financial records, or intellectual property—can be accessed by unauthorized users. Microsoft 365 Copilot, which assists with tasks like summarizing or generating reports, might inadvertently include this exposed data in its output, escalating the risk.

Copilot Readiness feature showing a history of Copilot interactions with internal resources
Copilot Readiness feature showing a history of Copilot interactions with internal resources

Oversharing is worsened by the fact that content generated by Microsoft 365 Copilot doesn’t inherit the protections of the original data it references. This makes it essential to audit Copilot interactions and continuously review permissions to ensure security.

AI interaction with Microsoft 365 can also increase attack surface. Broad file-sharing permissions can give malicious actors easier access to sensitive information. If Copilot accesses files with weak access controls, the likelihood of a data breach through phishing, insider threats, or compromised accounts increases.

To minimize risks, Copilot implementations should be paired with strong data governance policies, careful permission management, and audits to ensure secure use of AI-generated insights.

How Cavelo can help keep your data safe

To address these concerns, we’ve added the Cavelo Copilot Readiness report, a comprehensive solution designed to help organizations minimize risks. By auditing Copilot interactions, identifying files with sensitive PII or overly broad permissions, and enforcing best practices like Microsoft’s Zero Trust model, this report ensures that organizations can safely leverage Copilot’s capabilities without compromising security.

Screenshot of Cavelo's Copilot Readiness showing a list of an organization's anonymously linked resources
Copilot Readiness feature showing a list of an organization's anonymously linked resources

The Cavelo Copilot Readiness Report is an all-in-one solution to safeguard your organization while using Copilot. This platform feature minimizes the risk of oversharing by identifying resources with open access or sensitive PII data, ensuring only the right people have access.

Screenshot of Cavelo's Copilot Readiness feature showing a failed CIS benchmark with steps for how to remediate
Copilot Readiness feature showing a failed CIS benchmark with steps for how to remediate

It audits every Copilot interaction, applying enhanced permissions and PII labels to help you spot and mitigate risky usage. Plus, it leverages the latest CIS benchmarks, aligning with Microsoft’s Zero Trust principles, to keep your security foundation strong and future-proof.

➡️ Want to see more? Jump into our Copilot demo tour to see a real-world example of the Cavelo Copilot Readiness report in action.

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