Data breach incidents are running rampant across Chicago, Tampa, and the rest of the United States. According to a recent study, the number of data breaches increased by 38% between the first and second quarter of 2021. Unfortunately, there are no signs that these breaches will slow down in the near future, as there’s also a growing surge of phishing and malware attacks.
To protect data, businesses will need to employ powerful security measures and one of the most important of these is encryption.
How does encryption work?
Encryption is the process of encoding files and messages so that they can’t be accessed or read by anyone else other than the intended recipient. It uses complex algorithms to convert plaintext information into unreadable ciphertext that can only be decoded by authorized parties with the right key. In cryptography, encryption and decryption keys are a random string of bits used to identify who encrypted the information and specify who can decrypt it. Without access to either of these keys, cybercriminals who somehow manage to intercept encrypted files will only see gibberish. Their only hope of gleaning any information is to guess the algorithms and keys used to encrypt the message, which can take thousands of years using brute force techniques.
The difficulty of cracking complex algorithms is what makes encryption so valuable for protecting the integrity and confidentiality of information. This is why encryption is often a staple security measure for businesses that manage highly sensitive data like medical records, financial information, customer data, and proprietary documents.
However, this is merely a basic description of how encryption works. Encryption is multifaceted and comes in different forms. Companies will particularly have to face one key decision when deploying encryption: should they go with software-based or hardware-based encryption?
What is software-based encryption?
Software-based encryption refers to programs that use a computer’s processing power to encrypt data. This type of encryption typically relies on passwords as encryption keys to authenticate users. Well-known examples of software encryption programs include Bitlocker and AxCrypt.
Benefits
What’s great about encryption software is that it’s accessible for just about any business or industry. Many encryption software solutions are compatible with major operating systems (OS) and devices, so there’s little configuration required. Encryption software works just like any application, allowing you to install updates to fix bugs and upgrade features.
Additionally, encryption software is an incredibly cost-effective security measure. In fact, powerful encryption tools like Bitlocker and FileVault are installed on modern Windows and Mac computers for free. Plus, the software can be easily distributed across your company and does not require you to purchase additional hardware.
Drawbacks
While software-based encryption is accessible and cost-effective, it does come with certain risks. For one, the security of encryption software is highly dependent on the operating system on which it’s installed. If there’s a security flaw in the OS, hackers can access the system and disable or remove encryption software, leaving your data fully exposed. Hackers can even launch brute force attacks to guess passwords that would decode encrypted files.
Even if the encryption software limits the number of password guesses allowed to decrypt data, hackers who have access to the computer’s memory can simply reset the attempt counter and guess an unlimited number of times. It’s therefore important that users regularly update their OS to eliminate vulnerabilities cybercriminals may exploit.
Software-based encryption can also impact system performance. When software uses the computer’s processor to encrypt data, resources are diverted to that process and, as a result, slows down normal operations. This can cause productivity issues since you’re waiting longer for your work applications to start up and load your files. Fortunately, modern computers are boasting more powerful processors than ever, so you’ll only notice a slight dip in performance when encryption software is in play.
What is hardware-based encryption?
Hardware-based encryption uses a device with a processor designed specifically to authenticate users and encrypt data. Examples of hardware encryption devices include encrypted USB and external hard drives, self-encrypting SSDs, and even mobile phones with built-in encryption capabilities. Unlike software-based encryption, which uses passwords as encryption keys, hardware encryption devices generate encryption and decryption keys so only authorized users can access classified information.
Benefits
The major benefit of hardware encryption is that it doesn’t need to be installed on the host computer’s operating system. This means even if your OS is compromised, hardware encryption processes will still keep your data secure. Encryption processes are always on so they’re not susceptible to malware or cyberattacks programmed to disable encryption protocols. Plus, brute force attacks are ineffective on encryption devices because they lock out users after several failed authentication attempts and the number of attempts can’t be reset like with software-based encryption.
What’s more, since encryption devices and their processes run separately from the host computer, you won’t experience performance issues. Hardware encryption also doesn’t require complex configurations or driver installations on the host computer, making it a fairly intuitive security solution.
Drawbacks
One downside of hardware encryption is that it can be more expensive than its software counterpart. An encrypted USB drive can cost at least $100, while some encryption software are offered for free. If you’re managing dozens of employees, purchasing and deploying encrypted devices for your team can definitely drive up costs.
Another issue has to do with updates and upgrades. Since hardware encryption is built onto the storage device itself, patching or configuring it is not as simple as sending out a patch. In many cases, the device itself will need to be replaced with something that has stronger encryption capabilities.
Also, keep in mind that these devices can be lost or stolen if not managed properly. The encryption processor could even get damaged, making it difficult to decrypt and access your information.
Which type of encryption is right for you?
The type of encryption you deploy will ultimately depend on your company’s needs. What’s truly important is considering factors like performance impact, security requirements, and budget.
For instance, businesses on a tight budget may consider software-based encryption because of its flexibility and scalability.
However, hardware-based encryption may make more sense for organizations in the financial, healthcare, and government sectors. Regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and Payment Card Industry Data Security Standard (PCI DSS) often have strict requirements regarding encryption of sensitive information. By complying with these regulations by using strong encrypted devices, your business can avoid expensive fines, lawsuits, and reputational damage.
Related reading: Learn the security requirements of HIPAA and PCI DSS
Regardless of what solution you choose, encryption will always play an integral role in any security framework. If you need help deciding on the best encryption solution for your business, the expert security consultants at Dynamic Solutions Group can help. We’ll conduct a thorough assessment to understand your company’s security needs and recommend best-in-class solutions. Contact us today to get started.
