Encryption

Encryption is the process of converting data into a coded format that can only be accessed or decrypted with the correct key. It protects sensitive information from unauthorized access whether it's being stored (at rest) or transmitted (in transit).

In banking and credit union environments, encryption is critical for protecting customer data, ACH files, and internal communications. Tools like SFTP, FTPS, and TLS rely on encryption protocols to ensure data remains secure.

Why It Matters

Without encryption, sensitive information like customer data, account numbers, and payment instructions could be intercepted or stolen. Regulatory bodies such as the FDIC and NCUA require financial institutions to encrypt critical data.

Types of Encryption

  • Encryption at rest: Protects stored data on servers, hard drives, and backups.
  • Encryption in transit: Secures data as it moves across networks using protocols like TLS and SFTP.
  • End-to-end encryption: Ensures only the sender and intended recipient can decrypt the data.

How SimplifyIT Helps

Our platform uses modern encryption methods for both data at rest and data in transit. We also integrate with secure file transfer processes and encrypted workflows to maintain audit-ready compliance.

Common Questions

What is encryption used for?
Encryption protects sensitive data by converting it into a code that can only be read with the proper key. It's used to secure information stored on servers (at rest) and during transmission (in transit).
What's the difference between encryption at rest and in transit?
At rest encryption protects data stored on a device or server, while in transit encryption secures data as it moves across networks, such as when using HTTPS, SFTP, or FTPS.
Why is encryption important for financial institutions?
Banks and credit unions must protect customer data, payment files, and internal information from interception or theft. Encryption helps meet regulatory requirements and reduces risk.

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