Data encryption is the technique used to transform readable data into an encoded format through the use of cryptographic encryption algorithms, ensuring that only authorized parties with a decryption key can access or interpret it. Data encryption is widely used to protect sensitive information in transit (for example, during a payment transaction) and at rest (for example, where account information is stored), making it a critical control for safeguarding customer data and maintaining regulatory compliance.
Use case/ examples for data encryption
Encryption in transit: Encrypting customer data to protect it when it needs to be transferred from one institution to another, like during an online banking or e-commerce transaction, or between applications and servers within a financial institution.
Encryption at rest: Encrypting customer data where it is stored to protect it from hackers and from employees that should not have access, as well as to comply with privacy regulations like GDPR or CCPA.
