Understanding Data Encryption

TL;DR: Data encryption is essential for protecting sensitive information, ensuring data security, mitigating risks, and facilitating secure communication in various contexts. It should be used to encrypt data stored, and transmitted to safeguard confidentiality and maintain privacy.

What is Data Encryption?

Data encryption is a process of encoding information in such a way that only authorized parties can access and decrypt it. In encryption, plain text, or readable data, is transformed into an unreadable format, known as ciphertext, using an algorithm and at least one cryptographic key. The ciphertext can only be decrypted back into its original form by using the corresponding decryption key.

Encryption ensures that only authorized individuals or systems with the corresponding decryption key can access and decrypt the encrypted data.

Why use Data Encryption?

Data encryption is a fundamental tool for protecting privacy, ensuring data integrity, and maintaining confidentiality of your financial data.

Encryption is essential for protecting your sensitive and confidential financial information from unauthorized access or interception. It provides a layer of security that helps prevent data breaches, eavesdropping, and unauthorized disclosure of information by encrypting data transmissions between communicating parties.

When should Data Encryption be used?

Encryption plays a critical role in safeguarding sensitive information in various contexts, including communication networks, data storage, and cybersecurity.

Encryption should be used every time the data is actively traveling through the Internet or through private networks (in transit) to prevent interception, tampering, or eavesdropping by malicious actors.

Encryption should also be used when data is stored (at rest), including on your personal device to protect it from unauthorized access, data breaches, loss or theft. Encryption ensures that even if a device is compromised, the data remains secure.

We call this type of encryption Standard Encryption, and it is implemented by FinancialAha for everybody that has opted to store their data in the cloud. We encourage people using browser storage and/or manual import/export to consider implementing personal security measures.

In addition to the Standard Encryption, FinancialAha also implements Advanced Encryption methods which make your data unaccessible to anyone else besides you and your authorized collaborators.

Conclusion and Recommendations

In case you opted for browser storage and/or manual import/export, FinancialAha does not have access to your financial data and consequently cannot help you encrypt or secure it in any way.

FinancialAha's Standard Encryption and even Advanced Encryption, our highest level of data encryption and security, is implemented by default when you opt for cloud storage.

Learn more about FinancialAha's Standard Encryption and about Advanced Encryption.