Without encryption, any data shared within networks (and over the internet) is at risk of being manipulated by hackers. Although there are plenty of measures within cybersecurity to prevent hacking and leakage from occurring, period, what happens when that data is intercepted? asks Johan Hagdahl, pictured, at the cybersecurity and compliance company VikingCloud.
Encrypting data so it remains confidential can save companies money and protect their reputation on a global scale. The average cost of a data breach in the UK, after all things considered, reaches more than $3.4 million. With effective encryption strategies, firms can protect against data disclosure and ensure that only authorized individuals can access sensitive information.
What is encryption?
In basic terms, it’s the act of scrambling data so outside threats cannot read or use it. Scrambling data using encryption adds a layer of protection, significantly increasing the work factor required to read data should a data breach occur.
Properly encrypted data is impossible to read and use. Therefore, would-be attackers and data thieves who might find their way into a network can leave empty-handed if a company employs high-enough-strength encryption as part of its cybersecurity. Online, encryption is used to safeguard data transmitted between users and websites, ensuring it is unreadable and never shared with third parties.
It’s also useful in ensuring companies abide by regulatory practices, which can vary depending on their industry. Several types of encryptions are typically used in cybersecurity, each serving varying purposes. The two main strands of encryption are:
- Asymmetric encryption uses a two-key system: a public key encrypts sensitive data, and a private key unlocks it. These keys are paired, with the main benefit being that no single key is shared to lock and unlock the data.
- Symmetric encryption, meanwhile, does use a single-key option. Many companies and cybersecurity experts choose this method for its relative speed and accessibility.
Ultimately, encryption ensures that the only people who can read and use data are those who create it and those authorized to receive it. As companies continue to digitize their information and as big data keeps growing, there’s an increasing need to protect data with an effective security perimeter and to ensure information is impossible to read without keys.
In some ways, encryption is the last line of defense in modern cybersecurity. In the worst-case scenario, a hacker or bad actor breaks through a network firewall and accesses sensitive information but what if said information is impossible to read or use? It is the digital equivalent of a secured vault or safe inside a locked bank. It is internal protection that companies hope they may never need to rely on.
Encryption also plays an important role in establishing trust with end users and reassurance for regulators. Even if said data is never intercepted, there is clear reassurance that measures exist to prevent it from being used by the wrong people. Encryption is increasingly important in modern cybersecurity, largely because it is highly effective for data at rest and in transit. That means strong encryption not only protects data when stored, it also prevents attackers from intercepting and using sensitive information as it moves.
Strong encryption practices ensure companies can rest easy knowing their data is unreadable by outside sources, even when it’s sent via email or shared online. As such, cybersecurity experts recommend high-strength data encryption as a final layer of defense should attackers manage to outsmart other security measures put in place.
Encryption is used in all aspects of cybersecurity, both in the public and private sectors, to protect a wide range of data, from online shopping to top-secret corporate data. Encryption assures complete confidentiality of sensitive data, reassuring users that only they and whoever they communicate with will have access to shared information.
Corporations are usually very good at securing the perimeter; however, using encryption to protect data is a crucial part of a defense-in-depth cybersecurity strategy. Without encryption as part of a cybersecurity framework, companies effectively leave their valuables on display for attackers to take. Some of the biggest vendors worldwide use highly tailored encryption plans to protect their data. Meta, for example, famously uses a five-pillar encryption system.
Compliance
Several international laws and regulations require businesses to encrypt data that is shared, stored, transmitted, and used. This is to protect innocent users’ interests, not just safeguard company integrity. Some important regulations businesses need to follow when considering encryption include:
- PCI DSS, Payment Card Industry Security Standard: This PCI DSS regulation requires companies in the payment industry to manage account data, such as the card number, securely (i.e., by encrypting it) to protect customers’ finances.
- GDPR, General Data Protection Regulation: UK organisations must ensure the confidentiality and integrity of personal data. Encryption is widely recognised as a key safeguard to prevent data breaches and ensure lawful processing.
- ISO/IEC 27001: This international standard outlines best practices for information security management. It encourages the use of encryption as a technical control to protect sensitive data, particularly when dealing with risks related to data confidentiality, integrity, and availability.
Data encryption supports industry compliance and ensures firms’ customers and clients can rest easy knowing their information is safe against potential cyber theft.
Challenges
Encryption can be difficult to employ without the support of cybersecurity experts and analysts. The most experienced professionals will usually recommend vulnerability scanning and security testing as an initial measure, before taking time to analyse the entirety of a network’s cybersecurity needs. This way, security experts can learn more about a company’s needs and its current frameworks before agreeing upon an encryption strategy that’s effective and appropriate for the environment and data requiring protection.
Other common challenges facing firms setting up encryption include deciding how to manage encryption keys effectively. Key management increases in cost and complexity the more a company grows, meaning significant financial and scaling decisions must be made.
There is also the common concern that key encryption could potentially impact system performance and the difficulty of accounting for significant variations between cloud and on-prem encryption infrastructures. However, these issues are manageable when companies partner with an experienced cybersecurity team with measurable expertise.
Conclusion
Encryption is just one important facet of a broader, modern cybersecurity framework. Companies shouldn’t just focus on perimeters and firewalls but also on the sensitive information that lies within them. With strong enough encryption, even the most experienced hackers cannot use or manipulate the information they find inside the networks they break into.
About the author
Johan Hagdahl – CISM, CISA, CISSP, CSSLP, QSA, QPA, SSA, SLCA, 3DS Assessor, P2PE Application Assessor – is the Director of Compliance and Risk Services at VikingCloud. Through his work in the financial payment sector, Johan has knowledge of transaction processing functions internationally, working at and with payment service providers and banks throughout EMEA, the Americas, and Asia. He has over two decades of experience in inter-banking processing and relations.
