Digital watermarking in cybersecurity is the practice of embedding hidden, machine-readable identifying data directly into digital assets such as images, audio tracks, video files, and documents without altering their primary perceptual quality. This technique serves as a foundational security measure for intellectual property protection, copyright enforcement, data provenance verification, and digital asset tracking. By concealing ownership metadata or cryptographic signatures within the host medium, security systems can track unauthorized data exfiltration, prove legal authorship during copyright disputes, and detect malicious tampering or deepfake generation across enterprise networks.