Posted on: 11 February 2022
According to experts, the average data breach cost among organizations surveyed recently hit $4.24 million per incident in 2021. This shocking figure proves protecting your business' data is vital and a key factor in preventing immense losses. Encryption is one of the techniques applied by experts to achieve this end. It involves converting plaintext information into a ciphertext that can only be deciphered by authorized personnel. In a nutshell, this solution helps you limit access to crucial data to specific individuals or teams. The reasons to use encrypted data transport when sending sensitive files like application forms, financial statements, and tax return documents are outlined below.
1. Protect personal data
There are many forms of personal data relating to identifiable and non-identified personnel. These include information concerning various facets of an individual's life such as religious affiliation, race, genetic data, health data, sexual orientation, and biometric data. Most businesses collect personal data and use them to tailor products and services to satisfy clients and consumers more efficiently. Optimizing privacy and data protection through encryption is crucial for your company if it collects clients' data. Otherwise, if your systems are compromised, and data loss or compromise occurs, significant consequences will follow, including brand reputation damage, costly lawsuits, and bad publicity.
2. Prevent identity theft
Encryption helps you prevent identity theft by stopping scammers and other cybercriminals who try to steal your private details, especially during file transmission. By doing that, this technique saves from many adverse ramifications associated with identity theft. Remember, fraudsters can steal your identity and use it to purchase goods and services, hurting profit margins. Most criminals do that by establishing lines of credit with retailers, banks, and other institutions once they have secured your identity. This problem is common with organizations running bigger accounts since they have higher credit limits that cybercriminals can exploit.
3. Negate content tampering
Sometimes hackers intercept data during transmission and alter it to suit their ill motives. This form of manipulation is deadly to your business, especially when sending sensitive information to key stakeholders and decision-makers. Some malicious individuals or competitors may also use the altered content to undermine client trust, leading to customer loss and significant financial repercussions in the long run. But, when you use encryption solutions, rest assured your data will be safe and recipients in a better position to detect any alterations.
The Bottom Line
Data transmission is often affected by interceptions, observations, and thefts. Fortunately, there are many ways to avoid these problems, one of the best being encrypted data transmission. Working with professionals skilled and experienced in encryption helps you safeguard data, avoid costly legal issues, and boost trustworthiness.Share