Though encryption is often complex and consists of many different components, in the simplest of terms encryption is a method or a process of encoding or scrambling information into a format of which only authorized parties can decipher. Data stored on servers is often encrypted as are emails and even instant messages. Businesses encrypt data to reduce the risk of having company data end up in the wrong hands.
How Encryption Works
There are multiple options for encrypting data across an IT environment. Cloud providers such as Amazon Web Services (AWS) and Microsoft Azure have encryption methods built in to their services. Email applications such as Microsoft Exchange Online (through Microsoft Office 365) also have encryption options that can be set so that all incoming and outgoing emails are encrypted, so that the data stored within each email is only viewed by the appropriate parties.
Where It Works
Full-Disk Encryption – Full-Disk Encryption involves encrypting an entire device. This means the hard drives of devices such as laptops, tablets, smart phones; even USB drives are fully encrypted. As the encryption is applied to the entire hard drive – everything becomes encrypted including the operating system, the program files, data files, and even temporary files.
File-Level Encryption – File-Level Encryption protects data that lies outside of an encrypted device. Say for example you upload a file to a cloud server from a full-disk encrypted device. The file on the device is encrypted but when it is in transit to the cloud it loses its encryption. File-level encryption protects files anytime they are in transit either being sent via email or uploaded to the cloud.
There is one major issue with file-level encryption thought. With full-disk encryption one key can be used to decode an entire device whereas with file-level encryption, you need to have a key to “unlock” each individual file. With proper file and key management, this can be streamlined, but it does take time and the right administration to achieve the best results.
Why Your Business Needs It
- It’s Good Business Practice
Cybercrimes are on the rise as they can do a substantial amount of damage, within a little amount of time, and often are very difficult to trace back to the culprit(s). As such, businesses need to ensure that their data and their communications are encrypted. Even with enterprise-level firewalls, security protocols, and two-factor authentication; there is not 100% guarantee against an outside intruder. If the data is encrypted, even if an outside party manages to make it into a system and steal information, the encryption makes it very difficult to access the information stored in the encrypted data.
- It Could Be A Governmental or Industrial Requirement
Different industries have specific compliance and regulatory requirements. For example, businesses in the healthcare industry have to abide by HIPPA just as financial institutions have encryption and data guidelines set fort via legislation such as the Dodd-Frank Act. Massachusetts in particular has its own IT security compliance regulations via Massachusetts General Law Chapter 93H, 201 CMR 17.00 which requires businesses to encrypt all personal information records and files that are transmitted across public networks, or stored on portable devices.
