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8 Reasons Your Business Needs Data Encryption - Finnegan Pierson - Blog

8 Reasons Your Business Needs Data Encryption

Encryption is a security tool used to protect sensitive information from access by unauthorized individuals. Almost all businesses can benefit from using encryption to help protect their data. These are eight reasons your business needs data encryption.

  1. You Are Always Sharing Data

Businesses are always sharing, storing and exchanging data. Every time you do this it creates an opportunity for malicious actors to access your data. Using an encryption protocol, such as tls 1.3, makes it more difficult for these bad actors to make use of anything they manage to steal from your network. 

  1. You Could Be Sued or Fined

Customers expect businesses to keep their sensitive information from being stolen. Businesses that fail to protect customer data may face lawsuits, fines, loss of reputation and bad publicity. Additionally, customers who have had their data stolen or heard about a breach at your company may choose to do business with someone else. When you use encryption, if you have a breach, your data will be useless to all but the most sophisticated thieves. This reduces the chance that you will face legal consequences or have to deal with angry customers.

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  1. Encryption Helps You Stay Competitive

Your business's reputation is critically important when it comes to staying competitive. Data breaches can lower your shareholder value and make it more difficult to compete with other companies that are perceived as being more secure. Encryption also helps you protect your trade secrets from being stolen by or shared with your competition. 

  1. Protects You Against Employee Theft or Error

While protecting yourself from external threats is important, data loss can also come from inside your company. Without proper security measures, employees may intentionally or unintentionally share your sensitive data with other parties. Following security best practices can help prevent this from happening; however, if it does, encryption provides you with an extra layer of protection against that data being used maliciously.

  1. Helps Keep Your Company Compliant

Because of the damage that data theft can do to people who engage with your business, many countries have established regulations, such as the European Union's General Data Protection Regulation, that require businesses to protect customers' information. Encrypting your data can help you comply with these regulations.

  1. Provides an Effective Last Line of Defense

It is best to avoid data breaches; however, thousands of breaches occur every year and they get more and more difficult to avoid as hackers become more sophisticated. Data encryption serves as a last line of defense when your other defenses fail. 

  1. Mobile Computing Creates More Risks

It has become common for businesses to access their data on the go by using laptops, tablets and smartphones. This has made it possible to conduct business from almost anywhere but also has created new weak points for hackers to exploit. A lost or stolen device can be an easy way for cybercriminals to break into your system. Encrypting your data makes it more difficult for anyone accessing your data on a stolen mobile device to use, sell or transmit it. Many smartphones have built-in encryption, but you may need to specifically activate it. Laptops can be protected through third-party tools or encryption built into the operating system. Don't forget to protect any USB drives that have sensitive information on them.

  1. Malware Attacks Have Been Increasing

If you have been paying attention to the news, you are probably aware of some of the ransomware and other malware attacks that have caused havoc for some high-profile companies. If an employee accidentally downloads malware onto your system, data encryption can help prevent this malicious software from exposing your data to hackers.

With data breaches becoming more common and difficult to avoid and the potential costs of these breaches escalating, it makes sense to employ as many layers of protection as you can. Encryption is another tool in your security toolbox that you can use to protect your data.

Publish Date: October 14, 2021 9:36 PM

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