Data breaches are becoming alarmingly prevalent, posing serious risks to businesses. For example, the 2021 cyberattack on Microsoft Exchange email servers affected more than 60,000 companies worldwide, granting cybercriminals unauthorized access to emails. These incidents highlight the urgent need to safeguard sensitive information, and one of the most reliable defenses against unauthorized access is data encryption.
In this blog, we’ll discuss what data encryption is, how it works, and why it’s essential for modern businesses.
What is data encryption?
Data encryption is the process of transforming readable information, known as plaintext, into an unreadable format called ciphertext. Only people with the decryption key can unlock and read encrypted data.
There are two main types of encryption based on how and when your data is protected:
- Encryption at rest – This protects data stored on devices such as hard drives, databases, or cloud servers. Even if a device is lost or compromised, the data in it remains inaccessible without the decryption key.
- Encryption in transit – Encryption in transit protects data as it moves between systems such as when you send an email or transfer files. Encryption protocols such as Secure Sockets Layer and Transport Layer Security help prevent interception or unauthorized access during transmission.
How does data encryption work?
Encryption uses mathematical formulas called cryptographic algorithms (e.g., Advanced Encryption Standard) to scramble data.
Encryption keys, which are essential to the process, generally fall into two main categories:
- Symmetric encryption uses a single, shared key for both encrypting and decrypting data. It is fast and efficient, making it ideal for securing large volumes of data. However, the challenge lies in securely sharing the key between parties without it being intercepted.
- Asymmetric encryption involves two keys: a public key and a private key. The public key is used to encrypt data, while the private key is required to decrypt it. Unlike symmetric encryption, the two keys are mathematically linked but not identical. Asymmetric encryption adds an extra layer of security since the private key is never shared, making it ideal for secure communications such as email or digital signatures.
Why do businesses need data encryption?
Here are the key advantages that data encryption offers:
Protects sensitive data from prying eyes
The 2019 Facebook security incident highlights the risks of poor data security practices, as hundreds of millions of user passwords were stored in plaintext, making them easily accessible to employees and compromising user privacy.
Robust encryption protocols could have safeguarded this sensitive information, rendering it unreadable to both internal and external threats.
Simply enabling the built-in encryption tools (such as Bitlocker on business-class Windows devices) can ensure that if a laptop is lost or stolen that the data on the hard drive will be safe.
Reduces the damage of a data breach
Unfortunately, no system is 100% immune to cyberattacks. But with data encryption, even if a breach does occur, your data isn’t easy to exploit, reducing the risk of financial loss, reputational damage, or legal repercussions.
Strengthens compliance with data protection laws
Many industries are subject to strict data privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA) and the Gramm-Leach-Bliley Act. These require businesses to encrypt sensitive information. Failure to meet these requirements can result in hefty fines and other legal repercussions.
Build and maintain customer trust
Your customers rely on you to protect sensitive information such as credit card details, health records, or sensitive contact information. With robust data encryption, you not only secure their data but also strengthen your reputation and foster lasting loyalty by being a good steward of your customer’s sensitive data.
Why work with a managed IT services provider for data encryption?
Managing encryption strategies can be challenging, especially if you’re not tech-savvy. That’s where a managed IT services provider like Fidelis comes in.
By partnering with us, your business can expect:
- Expert guidance on the best encryption methods and tools for your needs
- Ongoing compliance monitoring to help meet regulatory or compliance requirements
- Round-the-clock management of your encryption systems and security infrastructure
Get in touch with us today to discuss how we can secure your data and enhance your company’s resilience to cyberthreats.
