Reading Time: 6 Minutes
The science of encryption has been the answer to the fundamental human need to masquerade and protect sensitive information from prying eyes. Although the technology has witnessed a drastic metamorphosis over the ages, the fundamental concept behind encryption has remained unchanged. Encryption involves substituting the original information with codes that can be deciphered only by authorized parties.
From the first hieroglyphics of Ancient Egypt appearing almost 4000 years ago and the Scytale used by the Spartan military in 700 BC, to Thomas Jefferson’s Jefferson wheel in 1797 or the Enigma machine popularized by the Nazis during the second world war, encryption has taken different forms over the centuries.
However, one of the major breakthroughs that continue to inspire the modern-day science of encryption came in 1961 when MIT’s CTSS (Compatible Time-Sharing System) developed the first-ever username and password methodology of user authentication.
Some of the more recent developments in the encryption technology include the introduction of AES (Advanced Encryption Standard) in 1997, the launch of reCAPTCHA in 2007 and the emergence of personal data lockers in 2012, all of which are used widely to this day.
To fully understand encryption, we must first define its parent category: cryptography. Although often confused with each other, encryption and cryptography are inherently different. We have put together the following list to demonstrate what sets the two apart:
There are two main ways in which data encryption is carried out today, namely shared secret encryption (symmetric cryptography) and public key encryption (asymmetric cryptography).
As the name suggests, this form of encryption employs a single secret key that is required to encode the data into unintelligible gibberish. The intended receiver can then use the same secret key (shared by the sender) to decrypt and decipher the data at their end.
Since it uses a single private key, symmetric encryption is faster than asymmetric cryptography. However, since the secret key needs to be shared between the sender and the receiver, there are relatively high chances of hackers intercepting the key and gaining unauthorised access to the coded information.
Asymmetric cryptography employs public-key encryption that splits the key into two smaller keys — one public and the other, private. While the public key is used to encrypt the message, the receiver must use their private key to decrypt it at their end.
The fact that there is no prior exchange of secret keys for decryption makes public key encryption more secure than shared secret encryption.
According to the latest report by the Ponemon Institute, the average cost of a data breach is $3.86 million globally. These costs can almost double when broken down by country, industry or business size, jumping to an average of $8.64 million in the United States or $7.13 million for the healthcare industry.
The report points out that 80% of the data breaches included records containing customer PII (personally identifiable information). The study determined that the average cost of each compromised record was $150 and discovered that over 39% of the total cost of a data breach resulted from lost business.
You might be wondering how this impacts you? It means a single data breach could result in a significant hit to your company’s profits and could also result in your brand reputation being tarnished or irreparably damaged.
Intriguingly, the same report also highlights that extensive data encryption can be a critical factor in mitigating the costs of a breach by as much as $237,176!
Most businesses, like yours, deal with loads of sensitive data every single day. Unless adequately secured, this confidential data can be exposed to the risk of being accessed by unauthorized users. Although no business is entirely immune to security breaches, implementing data encryption is your best bet when it comes to protecting your confidential information and safeguarding your reputation as well.
With multi-national enterprises like Target, Yahoo and Equifax undergoing major data breaches in the not-so-distant past, you can never be too sure of the fact that your privacy is not at stake. Keeping that in mind, it is worth noting that along with encrypting their original data, many users now are also opting for encryption of their data backups. Here’s some food for thought for those of you who are still mulling over whether or not you need backup encryption:
While data encryption is designed primarily to benefit the user and rarely has any drawbacks when properly implemented, one of the risks associated with encrypting your backup data is losing the decryption key. You need to keep your decryption key secure (just like your other passwords) and handy for easy access to your data backups.
We have compiled a list of our three main reasons why data encryption is imperative for your business:
Cyberattacks such as phishing and social engineering that thrive on human error or negligence can be efficiently thwarted with the help of encryption. So, even if the attacker is able to reach within your network, it’s impossible to access the encrypted data without a decryption key.
With the concept of the workplace becoming more fluid, data stored on portable devices such as tablets, USB flash drives, laptops and smartphones becomes especially vulnerable to cyberattacks as soon as the device leaves the office network. Encrypting this data is the safest way to ensure that even if your device gets stolen, the data will remain unintelligible and unreadable without a decryption key.
In a world where you need to stay compliant with laws and regulations to steer clear of hefty penalties, implementing data encryption is a great option to protect your critical data from cyberthreats and abide by the applicable compliance standards. For instance, the European Union’s General Data Protection Regulation (GDPR) recommends encryption as an effective tool against breaches.
Cybersecurity is one of the most integral aspects of running a business in the modern world, and encryption is one of the most effective strategies that you can deploy to bolster the integrity of your sensitive data against malicious attacks.
Want to know more about how you can leverage encryption to secure your business? Get in touch with us today! Our specialists will be happy to advise in preparing your business with the best systems available in the market.
Want to learn more about Cyber Security? Our blog is full of helpful articles on the topic.