With the increasing risk of data breaches and unauthorised sharing, organisations need robust security measures to safeguard their confidential documents. One such powerful tool is Dynamic Watermarking, a feature offered by Microsoft Purview Information Protection in Microsoft 365.
What is Dynamic Watermarking?
Dynamic Watermarking is a security feature that overlays watermarks with user-specific information on documents. These watermarks are visible when the document is viewed, edited, or shared, and typically display the user’s login information, such as their email address. This feature is available in Microsoft Word, Excel, and PowerPoint.
How does Dynamic Watermarking work?
When a sensitivity label with dynamic watermarking is applied to a document, the watermark appears as a tiled overlay across the content. This watermark includes the user’s email address and can also be customised to display additional information, such as the date and time. This makes it easier to trace any unauthorised dissemination of sensitive information.
Benefits of Dynamic Watermarking
- Deterrence of Unauthorised Sharing: The presence of a visible watermark with user-specific information discourages individuals from sharing sensitive documents without permission. Knowing that their identity is embedded in the document acts as a strong deterrent.
- Traceability: In the event of a data leak, dynamic watermarks make it easier to identify the source of the breach. This traceability is crucial for investigating and addressing security incidents.
- Cross-Platform Support: Dynamic Watermarking is supported across multiple platforms, ensuring consistent protection regardless of the device or application used to access the document.
- Customisability: Administrators can configure watermarks to include additional information, such as the date and time, providing more context about when the document was accessed or shared.
- Enhanced Security: Documents with dynamic watermarks are protected even if someone attempts to take a screenshot or photograph of the screen. The watermark remains visible, making it clear who accessed the document.
Implementing Dynamic Watermarking
To implement Dynamic Watermarking, administrators can configure sensitivity labels with this feature via the Microsoft Purview compliance portal or PowerShell. Once enabled, any document labelled with these sensitivity labels will automatically display the dynamic watermark when opened in supported applications.

Want to learn more?
To learn more about Dynamic Watermarking and Microsoft 365 Information Protection, book onto our Microsoft 365 Purview Information Protection & Data Loss Prevention Training Course.
Microsoft 365 Purview Information Protection & Data Loss Prevention Training Course
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Jacqueline Stockwell (Australasia)
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