3 Reasons Why Businesses Require Encryption

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3 Reasons Why Businesses Require Encryption

Last Updated on March 15, 2023 by

On the track, 2019 is noted to be the worst year on record in terms of data breaches, by a report that was published recently by Risk-Based Security, with a record of over 3,500 data breaches till the end of June and millions of data that are exposed. The staggering growth of about 54% is noticed in terms of the breaches here.

Data breaches are never to arrive on their own as they are oftentimes followed with the help of a steep fine, along with the loss of trust by your customer here. Some businesses will go bankrupt within six months of the data breaches. The reality of these harsh figures is well realized by the companies that have started to invest in data security strategies that aim to protect the data and help keep intruders off.

In terms of these strategies here, encryptions have evolved as the main component and a way to secure the data from employees who are careless or malicious outsiders. A few companies are still hesitating when it arrives to asymmetric encryption that happens due to the lack of understanding of its usefulness or the fear of its implementations that might encumber the networks to bring down the efficiency of the employees. However, one of the highly powerful and practical tools in terms of the arsenal of data security, encryption, is the one that is mainly required.

The last line of defense

There are companies out there who sometimes become powerless to stop these cyber attacks.  The attackers, therefore, can quickly check out and steal sensitive data. If the data is encrypted, they would have no way of accessing them without the key to decryption; therefore, the data is saved from being compromised. The military-grade AES-256 is a kind of encryption selected and used widely in encoding messages. It is always great to use a backup plan with an effective data security strategy that would ensure that the companies are not getting compromised.

The data on the go is protected through encryption.

One of the highest potential security risks the companies here face is the data on the move. The devices that are portable containing sensitive data are moved outside of its security, both physical as well as digital, the network of the company. An increasing number of employees are taking their devices out of the workplace, whether it is for meetings, conferences, or remote work.

Encryption aids in effective compliance

Data protection is no longer an option here these days. Companies and businesses surely cannot ignore the issues and hope they will not get targeted by dangerous hackers. If there is an option in a pre-GDPR world as it was taken down by a storm in terms of the European Union’s General Data Protection Regulations as there are a few countries where the legislation for data protection has not been adopted or is recently being debated on with this kind of strategy.

Overview

In today’s digital age, businesses increasingly rely on technology to conduct their operations. This has led to a greater need for data security measures, with encryption being one of the most effective methods for protecting sensitive information.

  • Protecting confidential data: Many businesses handle sensitive data such as financial records, trade secrets, and customer information. Encryption can safeguard this data from theft or unauthorized access by making it unreadable without the appropriate decryption key. This ensures that confidential information remains secure, even during a security breach.
  • Meeting regulatory requirements: Many industries are subject to regulations requiring businesses to protect specific data types. For example, the Health Insurance Portability and Accountability Act (HIPAA) mandates that healthcare providers protect patients’ medical records. Encryption is often required to comply with these regulations, and failure to comply can result in hefty fines and other penalties.
  • Building customer trust: In today’s digital economy, customers expect businesses to keep their personal information safe. Using encryption, businesses can demonstrate their commitment to protecting their customers’ data. This can help build trust and improve customer loyalty, ultimately increasing sales and revenue.

The GDPR in itself will recommend encryption as the effective tool for data protection that would meet the potential standards for safety.