Top 5 Technical Risks That Trigger DPDP Penalties

Every organization fears DPDP compliance but the real danger isn’t paperwork. It’s technical vulnerabilities that silently expose personal data.

These are the five biggest technical failures that trigger fines under the DPDP Act:

1. Misconfigured Databases

Most breaches happen because:

• A cloud bucket was left public
• The database had default passwords
• Backups weren't encrypted
• Test servers were left open to the internet

DPDP treats this as negligence.

2. Unsecured Third-Party Platforms

Companies use:

• CRMs
• Attendance apps
• HR portals
• Contractors
• Marketing tools

Most of these tools collect personal data, but few companies check their security. If your vendor leaks data, you still pay the fine.

3. Weak Access Controls

Examples include:

• Shared login credentials
• Dormant user accounts
• No MFA
• Admin access given to interns or vendors
• Staff using personal devices with no security

DPDP expects strict access governance. Most firms fail badly here.

4. No Monitoring or Logging

If you can’t prove who accessed data, when it was accessed, or why it was accessed… then from the DPDP perspective, you’ve failed security. Lack of logs is an automatic red flag.

5. Poor Data Retention Practices

Companies store:

• Old employee data
• Customer data from 10 years ago
• Files on unencrypted drives
• Backups without deletion timelines

DPDP mandates purpose-based storage, and keeping unnecessary data increases liability.

⚠️ Why this matters

Most organizations already have these issues. Fixing them requires technical auditing, configuration checks, and risk mapping, not just policies.

This is the value of a professional DPDP technical assessment you uncover these risks before the DPB does.