What is Data Encryption?

Data encryption is a fundamental component of cybersecurity, protecting sensitive information from unauthorized access. 7 million unencrypted data records are compromised every day, leading to costly data breaches. According to the IBM Cost of a Data Breach Report 2024, the average data breach now costs $4.88 million, underscoring the financial and reputational risks of weak encryption practices.

Encryption also helps mitigate risks from modern threats, such as the exploitation of vulnerabilities and software supply chain attacks. It ensures that even if data is intercepted or stolen, it remains inaccessible without the correct decryption key.

In this blog, we’ll explore the essentials of data encryption, its evolving technologies, key algorithms, and practical implementation steps.

Why is Data Encryption Important?

Data encryption is essential for protecting sensitive information, meeting legal requirements, and gaining customer trust. Let’s explore why it matters.

Defending Against Advanced Threats

Cyberattacks are becoming smarter. AI-powered phishing attacks can trick people quickly, while quantum computing could one day crack current encryption methods. To prepare for these risks, encryption must keep evolving. In fact, the Quantum Computing Cybersecurity Preparedness Act was passed in the U.S. to protect systems from future quantum-based attacks.

Meeting Legal Requirements

Laws like the GDPR and the Data Protection Act 2018 demand encryption to protect sensitive information. Businesses that fail to comply risk fines as high as €20 million or 4% of annual revenue, whichever is greater.

Building Customer Trust

Consumers are paying more attention to how companies handle their data. Research shows that 74% of consumers are more likely to trust brands that adopt privacy-safe approaches to managing personal information. Prioritizing encryption not only protects data but also boosts your reputation and builds long-term customer loyalty.

How Does Data Encryption Work?

Data encryption transforms readable data (plain text) into an unreadable format (ciphertext) using algorithms and keys. Only authorized individuals with the correct decryption key can convert the data back to its original form, ensuring that even if intercepted, the information remains protected.

Types of Encryption

Encryption is implemented using two primary methods: symmetric and asymmetric. Each type serves specific purposes, depending on the nature of the data and the security requirements.

Symmetric Encryption:

• Uses a single key for both encryption and decryption.
• Ideal for securing large data volumes, such as databases.
• Example: AES-256, widely recognized as the industry standard for symmetric encryption.

Asymmetric Encryption:

• Employs two keys: a public key for encryption and a private key for decryption.
• Commonly used for secure communication, like emails or digital signatures.
• Example: RSA (2048-bit or 4096-bit), which provides strong security and is resistant to many modern threats.

Encryption Algorithms: What’s Leading?

Modern encryption technologies are evolving to tackle emerging threats and meet increasing demands for data security. Here are the leading algorithms:

AES-256 (Advanced Encryption Standard):

• The gold standard for encrypting files, personal data, and financial transactions.
• Known for its speed and reliability, it remains the industry benchmark.

Post-Quantum Cryptography (PQC):

• Designed to resist quantum computing attacks, ensuring long-term data protection.
• Expected to play a crucial role as quantum technologies advance.

ECC (Elliptic Curve Cryptography):

• Provides strong encryption with smaller keys, making it ideal for IoT devices and systems with limited resources.

These algorithms are built to handle the growing volume of data efficiently while maintaining high security standards.

Real-Life Example: The Cost of Neglecting Encryption

In February 2024, a cyberattack on UnitedHealth’s tech unit, Change, exposed the personal information of 100 million people, making it the largest healthcare data breach in U.S. history. The hackers, known as ALPHV (BlackCat), broke into the system and accessed sensitive data like health insurance IDs, diagnoses, treatment details, social security numbers, and billing codes.

The attack caused major disruptions, stopping claims processing and affecting patients and healthcare providers across the country. UnitedHealth reported a $705 million loss for the year, provided billions in loans to help healthcare providers, and spent heavily to notify affected individuals.

This breach shows how unprotected data can cause huge problems. If encryption had been used, the stolen data would have been unreadable, reducing the damage caused by the attack.

How the Keepnet Human Risk Management Platform Can Help

The Keepnet Human Risk Management Platform offers essential tools to help your encryption strategies and overall cybersecurity.

Security Awareness Training

Keepnet offers comprehensive Security Awareness Training tailored to educate employees about the importance of encryption and best practices for maintaining data security.

By enhancing employee understanding, organizations can reduce the likelihood of errors that compromise encryption efforts.

Phishing Simulations

Through realistic Phishing Simulations, Keepnet tests employees' responses to phishing attempts, a common method attackers use to bypass encryption by obtaining credentials.

Regular phishing simulations help in identifying vulnerable individuals and provide targeted training to strengthen their defenses. Read our blog to learn how to create various phishing simulation campaigns with Keepnet.

Incident Response Tools

Keepnet's platform includes advanced Incident Response tools that enable swift action when a security lapse occurs. By automating the analysis and removal of malicious emails, organizations can prevent breaches that might exploit weaknesses in encryption protocols.

Human Risk Scoring

The platform assigns a Human Risk Score to employees based on their interactions with simulated attacks and training modules.

This scoring system helps identify individuals who may require additional training and ensures that all personnel adhere to best practices in encryption and data security.

Security Behavior and Culture Program

Keepnet helps organizations foster a workplace culture where security is second nature. Through gamified learning, real-world examples, and interactive training, employees internalize the importance of safeguarding encryption protocols.

Learn more details about security behavior and culture program.

Outcome-Driven Metrics: Measurable Improvements

Keepnet goes beyond generic training by offering outcome-driven metrics that track the effectiveness of its security programs. These metrics provide tangible insights into how well your organization is reducing human risks.

Also, Keepnet uses the concept of a Protection Level Agreement (PLA), a step beyond traditional service agreements. It’s a commitment from Keepnet to deliver measurable improvements in reducing human risks and enhancing encryption resilience.

With a PLA, Keepnet ensures your employees are equipped to handle encryption practices effectively, minimizing risks like phishing or poor key management. The PLA focuses on reducing risks over time, offering accountability and transparency in security initiatives.

Unlike vague promises, the PLA ensures that organizations achieve tangible, outcome-driven results in their encryption strategies.