Security is a consequential issue in data management because information stored is extremely valuable and a paramount commodity. It is a universal belief that hackers generates security breaches, but in actuality most of data loss is because of insiders. In virtually distributed setup, handover of crucial data from the distributor to the trusted parties happens frequently. It is a prime requirement to maintain the safety and stability of the services based on the expanding requests of users. When the sensitive data is leaked by the client, specific client accountable for the leak should be exposed at an initial stage. Thus, the monitoring of data from the distributor to agents is obligatory. Project proffers a data leakage detection system applying watermarking algorithm, which examines the tampering of data and evaluates that the leak of information came from one or more agents. Then, finally the procedure is implemented on a cloud server.