In today’s digital landscape, where data breaches cost businesses an average of $4.35 million per incident according to IBM’s 2022 Cost of a Data Breach Report, implementing robust encryption strategies isn’t just a security measure – it’s a business imperative.
As organizations increasingly rely on managed IT services to protect their sensitive information, understanding the differences between encryption in transit and encryption at rest becomes crucial for making informed security decisions.
The Basics of Data Encryption
Data in Transit Encryption
Data in transit encryption is the encryption method deployed to protect information while it is int ransit – that is, as your data moves between systems, networks, or devices.
This encryption technique transforms sensitive data into ciphertext – a cryptographic method – before transmission, ensuring that even if intercepted, the information remains unreadable to unauthorized parties.
According to Cisco’s 2023 Cybersecurity Report, 86% of organizations experienced at least one successful attack on in-transit data in the past year.
Data at Rest Encryption
You’re probably way ahead of us at this point, and yep, you’re right. Data at rest encryption involves the safeguarding of digital information stored in databases, hard drives, or cloud storage systems.
Data at rest encryption is the encryption method that ensures that stored data remains secure even if physical devices or storage systems are compromised.
The NIST Encryption Standards provide guidelines for implementing robust at-rest encryption – so maybe start there if you want to implement your own at-rest encryption.
Which Type of Encryption Do You Need For Business?
So which type of encryption do you need for your business?
Well, in today’s data-dependent world, you need both. Modern enterprises that want to be successful – and stay successful – require both types of encryption to maintain comprehensive data security. Something that is only becoming more valuable to customers.
According to Gartner’s Analysis of Encryption Technologies, organizations implementing both encryption types experience 64% fewer successful breach attempts.
Regulatory Compliance
HIPAA, GDPR, and other regulations mandate specific encryption requirements for different industries. Working with experienced managed IT providers ensures your business meets all necessary compliance standards while maintaining optimal security.
How To Implement Data Encryption in Your Business
Best Practices for Data in Transit
When it comes to protecting your data in transit, it’s best to call in the experts. Your in-house IT expert or your friendly managed services provider can help you establish encryption for all of your in-transit data.
In general, however, expect to introduce these protocols to protect in-transit data:
- Transport Layer Security (TLS) for all data transfers
- Secure protocols for email and file sharing
- Encrypted connections (HTTPS, SSL, FTPS) for web-based operations
Best Practices for Data at Rest
Again, we have to suggest you consult with an IT expert before digging into encryption, as it can be rather complicated.
That said, here are some basic protocols to follow to protect your data at rest:
- Full-disk encryption for all devices
- Robust key management systems
- Regular security audits and updates
Specific Use Cases For At Rest and In Transit Data Encryption
Small to Medium Businesses
Small and medium-sized businesses often handle sensitive customer data and internal documents, which means they need to protect that data – and that trust – at all costs.
If you’re a small business, data at rest encryption typically provides the most immediate value by protecting stored information on servers, workstations, and mobile devices.
Sure, you’re not encrypting messages or data moving between your servers, but it’s all about picking your battles.
E-commerce Companies
Online retailers need robust data in transit encryption to protect customer payment information and personal details during transactions.
PayPal, eBay, Amazon – they have some of the most robust and sophisticated in transit data encryption tech safeguarding the billions of customers who use their services daily.
But – like we’ve already established – they also implement strong at-rest encryption for stored customer databases and transaction records.
Healthcare Organizations
Healthcare providers must prioritize both types of encryption to meet HIPAA compliance requirements. If you’re in healthcare, you already know all about this.
Patient data needs protection both during transmission between healthcare systems and while stored in medical records.
Cost Considerations
When it comes to planning your IT budget – and considering how to pay for data encryption – what cost considerations are at play? What makes hte most sense financially?
Here’s a bird’s eye view of the costs associated with both types of encryption.
Data in Transit Encryption
- Lower initial implementation costs
- Requires ongoing certificate management
- Minimal impact on system performance
Data at Rest Encryption
- Higher upfront investment
- Lower ongoing maintenance costs
- May impact system performance
How To Choose The Right Encryption Methodology
Choose Data in Transit Encryption When:
- Your business primarily transfers sensitive data
- You operate cloud-based services
- You handle real-time financial transactions
- Your organization uses remote workforce solutions
Choose Data at Rest Encryption When:
- You store large amounts of sensitive data
- You maintain on-premises databases
- You handle long-term customer records
- You need to meet specific compliance requirements
Choose Both When:
- You operate in regulated industries
- You handle payment card information
- You store and transfer sensitive customer data
- You need comprehensive data protection
Conclusion
The question isn’t whether to choose between data encryption in transit or at rest – your business likely needs both. The best encryption strategy depends on your specific business needs, industry requirements, and risk profile.
As cyber threats evolve and data protection becomes increasingly critical, implementing comprehensive encryption strategies through trusted managed IT service providers is essential for long-term success and security.