Why Is Data Encryption So Important?

This post was written for beginners who don’t understand the benefits of data encryption.

Data encryption is important for keeping our online purchases and banking information secure. But it is also important to a variety of businesses that use it to keep sensitive information secure.

According to Wikipedia, the definition of encryption is:

encryption is the process of encoding messages or information in such a way that only authorized parties can read it. Encryption does not of itself prevent interception, but denies the message content to the interceptor.”

How does it deny the content to the interceptor? The simple answer is that the data is altered so that it is unreadable to anyone who doesn’t have the key that switches it back to its original state. Encryption can be one of the best ways to keep information safe.

Wikipedia shares:71% of companies surveyed utilized encryption for some of their data in transit, and 53% utilized encryption for some of their data in storage

Even if you’re a small business, you’re still subject to the Data Protection Act,” says Sian John, security expert at Symantec. “The law requires that you protect personal data from being stolen, misused or shared. If you have customer details stored on your computer, then using encryption allows you to say: ‘I’ve taken precautions to ensure that personal data doesn’t get lost.’”

Forget legal necessities and ramifications, it’s good business sense to protect your customers and let them know their info is properly secured.  It breeds trust, makes you stand out from competitors that are likely not proactively addressing this issue.  It’s essentially, insurance to protect your business from a breach.

Nearly every business can use encryption in some form or another. Corporate, financial and retail companies tend to need it the most due to bank account information and credit card numbers that may be stored in their databases. But places like healthcare organizations and criminal justice agencies definitely have use for it as well.

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