One embodiment of the present invention provides a system for automatically classifying data in a database. During operation, the system receives and executes a database operation. Next, the system automatically determines if any data was modified as a result of executing the database operation. If so, for each data item that was modified, the system automatically determines if the data item is associated with a classification-rule. If so, the system automatically reclassifies the data item according to the classification-rule. If not, the system leaves a classification of the data item unchanged.