Encryption is the process of protecting data. And it is done by changing the data from a readable form to an unreadable format. Complex algorithms are used here or scrambling data in order to protect it, as it becomes unreadable and also can not be accessed.
In case the data falls into the hands of any unauthorized parties, without having the right encryption code to decrypt the data, it can not be read. And when it comes to translating those files into readable, only the members of the organization have access to the encryption keys or the encryption key manager.
Think of it like the way you protect your home from being accessed by any stranger with the help of a lock and key. Here, the lock is the encryption, which keeps unauthorized individuals from accessing your house or, in other forms, your data.
And the encryption keys are equivalent to your house key that is needed in order to lock and unlock the door of your house. Only the person who has the key can lock or unlock the door of your house, or in other forms, encrypt or decrypt the data.
If someone, whom you do not want to enter your house, gets the key, the person can break in and steal your personal belongings. In the same way, in case any cybercriminal gets your encryption keys, they can steal your valuable information.
Here are some benefits of encryption. Just like CRM software for businesses, encryption is also a crucial part due to the below-mentioned reasons.
The volume of data, which is created, managed, or stored by organizations is increasing worldwide and also being diversified. It is becoming more important to have a data protection plan in place. The number of cyber attacks and breaches is also rising more and more.
It also often results in severe consequences for all kinds of businesses. Damage to the brand reputation, revenue loss, operational disruptions, loss of trust from customers, and also legal ramifications are some of them.
Though there are a bunch of technologies for protecting your data from a breach, it is true that encryption is the most effective one.
Compliance is the biggest factor, which is influencing organizations to implement encryption within their IT environment. There are also major regulations to exist across several particular sectors, only with the purpose of maintaining the security of sensitive and personal data of clients.
IoT, energy industry, biotechnology, financial services, and healthcare are some of the examples. If you fail to comply with all these regulations, it may result in a various number of penalties, like increased fees, penalties, and also retraction of rights in order to interact with clients only in the given industries.
For ensuring that sensitive data is not compromised, encryption offers a level of protection. It also confirms that all the necessary precautions are being taken for keeping the data safe.
The study says that around 25% of Americans do not prefer to do business with data-breached companies. The impact a data breach has on customer trust, and loyalty is one of the most significant and biggest consequences.
Yahoo experienced the largest data breaches of all time between the years 2013 and 2014, which had impacted 3 billion user accounts. After they announced the breaches publicly, they were forced to minimize their sales price to Verizon by $350 million.
In addition to that, they also paid a settlement of $80 million in 2018, along with a $35 million fine later. Other search engines and email services with better security service providers surpassed them. Implementing encryption like data protection makes the customers trust and also ensures the safety of their data.
There are a lot more things to know about encryption. But as a beginner, these pieces of information will do great. From there, you will get the basic idea of encryption. You can continue your research to get a better and wider grip.