WinZip Blog

What is GLBA compliance, and what does it mean for data protection at financial institutions?

WinZip Blog – March 30, 2023

GLBA (Gramm-Leach-Bliley Act) or GLBA compliance ensures that financial institutions adhere to a set of federal guidelines established by the Gramm-Leach-Bliley Act (1999). The act protects customers’ nonpublic personal information (NPI) held by financial institutions.

To comply with GLBA, these financial institutions must:

Safeguard customer records and information.
Provide customers with notices of their information-sharing practices.

Develop, implement, and maintain safeguards to protect customer information.

Depending on the severity of the situation, failing to comply with the GLBA as a financial institution can result in various consequences, from a poor reputation to vast fees and fines.

Securing and ensuring the confidentiality of customers’ private financial information is key to maintaining GLBA compliance. That’s why WinZip® Enterprise works to ensure even the most sensitive types of financial data remain safe.

History of the GLBA Act

The GLBA was introduced in the U.S. Senate on May 6th, 1999, by Senator Phil Gramm and co-sponsored by Senator Paul Sarbanes. It was quickly passed with overwhelming bipartisan support in both chambers of Congress and became law on November 12th, 1999, after being signed by President Bill Clinton.

The GLBA protects private customer details from banking institutions like banks, credit unions, and other authorities located within different states. It also applies to companies outside America registered under certain conditions outlined in this act.

Who does GLBA apply to?

The Gramm-Leach-Bliley Act (GLBA) is a regulation in the United States that applies to all financial institutions that collect, store, or use personal financial information from consumers. This includes banks, credit unions, mortgage lenders, investment firms, and insurance companies.

The GLBA also applies to these institutions’ service providers to store customer data.

How does GLBA compliance work?

To align with GLBA compliances, many organizations put a series of safeguards and policies in place. These safeguards include:

Data security policies.
Procedures to detect and prevent unauthorized access to customer data.
Training programs for employees on security and privacy for customer data.
Audit procedures for compliance with the applicable regulations.

Incident response plans in case of a security breach/attack on customer records.
Encryption methods for sensitive data (SSNs, dates of birth, credit card numbers).
Risk assessments and regular reviews to ensure security measures remain in place.

For example, as per GLBA compliance regulations, companies must also perform annual audits that review portfolios. Moreover, they must provide detailed reports on customer-sensitive data to ensure they are meeting the standards for security.

Failure to comply with the GLBA can result in civil or criminal penalties, restrictions on activities, and possible revocation of licenses. In addition, severe violations can result in heavy fines, ranging from hundreds of thousands to millions of dollars, depending on the scope and duration of the infringement.

In general, failing to comply with GLBA regulations puts businesses at risk for serious legal repercussions and may damage their reputation and credibility among potential customers. Therefore, financial institutions must remain compliant with all federal regulations to protect themselves from any unnecessary liabilities related to consumer information privacy.

What are the 3 key rules of GLBA?

The GLBA includes several significant provisions to protect consumer data while gaining customers’ trust that their personal information will remain secure.

The three main rules of the GLBA include:

Financial Privacy Rule

Financial Privacy Rule in the GLBA requires certain financial institutions to inform customers how it collects, shares, and safeguards their personal information. Under this rule, the financial institution must provide clear and conspicuous notice about its privacy practices upon initial customer contact.

In addition, they must identify:

What information is being collected from the customer?
How it intends to use that information.
How it will protect against any misuse of that information.

That customers can opt out of sharing their data with a third party.

Moreover, the Financial Privacy Rule outlines the specific categories of personal data covered by this, including a customer’s:

Name
Address
SSN

Account numbers
Credit card numbers
Income or investments
Medical history or other health-related information

Safeguards Rule

The Safeguards Rule of the GLBA mandates that financial institutions must have measures to protect customers’ personal information’s confidentiality, security, and integrity.

To ensure compliance with the Safeguards Rule, financial institutions must:

Designate a qualified individual to coordinate and account for the security program.

Develop a written security plan to identify potential risks and vulnerabilities and how they will be addressed and prevented.

Carefully assess service providers who may also have access to customer data.

Establish reasonable administrative, physical, and technical procedures for preventing unauthorized access or use of consumer data.

Create a data security employee training program that covers initial training at hiring and periodic refresher courses.

Monitor the effectiveness of safeguards and initiate corrective action when needed.

Test system procedures by conducting routine vulnerability scans and regular penetration tests.

Establish guidelines for responding to security breaches or incidents.

Promptly notify affected customers in response to a breach or incident.

Pretexting provisions

Pretexting in cyber security is using false or misleading information to gain access to confidential data and systems. Pretexting often involves a malicious actor attempting to access personal information and sensitive accounts. It is commonly used by hackers, scammers, and identity thieves to steal information from victims online.

The GLBA requires companies in their capacity as service providers to protect customers from pretexting attempts by implementing reasonable policies and procedures. These measures should be designed to detect and respond to pretexting attempts.

Such provisions should include:

Soliciting and verifying any requests for customer information with written authorization from a customer.

Monitoring for indications of suspicious activity, such as accounts accessed through unrecognized devices or locations.

Restricting access only when security protocols are followed.

Monitoring communication activity on networks for evidence of pretexting activities.

Using secure authentication methods when authenticating customer data.

Ensuring all employees receive proper training on pretexting.

5 benefits of GLBA compliance

One of the main benefits of GLBA compliance is that it helps to protect customer privacy. Privacy policies must be clearly explained, ensuring that customers are always aware of how their personal data is used. This heightened security helps to protect any sensitive data collected from customers or held within internal databases, ensuring that it always remains safe and confidential.

Another benefit of GLBA compliance is increased trust from customers. By being transparent about how personal information is used and stored, customers can rest assured that organizations are taking steps to keep their data secure.

Such a level of trust can be invaluable in gaining and maintaining loyal business relationships with existing customers. On the other hand, it can positively affect brand perception among potential new customers. This reputation may make new customers more likely to do business with an organization because they feel confident their data will always be kept safe.

Who enforces GLBA & potential GLBA non-compliance penalties

The GLBA is enforced by the Federal Trade Commission (FTC). The FTC enforces the provisions of GLBA, including how companies must protect customers’ financial information.

Potential penalties for non-compliance with the GLBA vary depending on the type and severity of the violation. Below are some potential GLBA non-compliance penalties:

1. Civil monetary penalties

Individuals or companies that have not complied with the data security provisions within GLBA may face civil monetary penalties of up to $100,000 per violation or up to $5 million for a series of breaches in a single year.

2. Cease and desist orders

Companies found to be in violation may be issued cease and desist orders by government regulators. These orders could make them stop certain activities until corrective measures can be taken.

3. Enforcement actions

In more serious cases, regulators can take enforcement actions against companies. This can include criminal prosecution and financial sanctions such as fines, restitution, and disgorgement (repayment of profits from illegal or wrongful acts).

4. Revocation of licenses

Depending on the nature of the violation, regulators can revoke licenses held by businesses under GLBA, meaning they will no longer be able to conduct business as usual until corrective measures are taken.

5. Removal from service provider directory

Companies that have not taken adequate measures to protect customer privacy could be removed from service provider directories maintained by government agencies such as the Federal Trade Commission or Federal Financial Institutions Examination Council.

How WinZip Enterprise Protects Sensitive Financial Data

WinZip Enterprise is a powerful, customizable solution that gives organizations industry-leading file encryption, data management, and compression capabilities.

Its file-level Advanced Encryption Standard (AES) encryption protects data in transit and at rest, ensuring compliance with major standards such as the Federal Information Processing Standard (FIPS) 140-2 and Defense Federal Acquisition Regulation Supplement (DFARS) regulations.

In addition to bank and military-grade encryption, WinZip Enterprise gives IT administrators full control over their data environments. The solution is fully customizable, ensuring that it meets your unique organizational needs.

Find out how WinZip Enterprise can help you keep your data safe today!

What is data exfiltration and how to prevent it?

WinZip Blog – March 9, 2023

Data exfiltration, otherwise known as data extrusion or data theft, refers to the unauthorized transfer of personal information from one computer or device to another. Data exfiltration can happen manually, by a person with physical access to a device, or automatically through malicious programming and software. Essentially, data exfiltration is a type of security breach that happens when a person or company’s data is transferred, copied, or stolen from a device or software without permission.

There are many techniques that malicious actors use to steal data. Often, these cyber-attacks are targeted thefts used to gain access to specific valuable information.

Unfortunately, data extrusion can be exceedingly difficult to catch. Hackers often mask theft by making it look like network traffic that is typical to the user, therefore making it easy to miss. Once a person or company’s data is breached, the damage can be unfathomable.

So, what does data exfiltration mean for your business? Without the proper understanding, care, and precautions, you can’t be sure that your data is safe. When your data isn’t safe, neither is your business. To adequately keep you and your company clear of hackers, it is vital to understand not just what data extrusion is but how to prevent these attacks from ever happening.

Using data encryption, management, and sharing software, such as WinZip® Enterprise, can help protect users from data exfiltration. Solutions like WinZip Enterprise are essential to eliminating the risk of data loss by providing file tracking that can show when files or data are moved, edited, or deleted.

Data exfiltration vs. ransomware attacks

Ransomware attacks use malicious software to threaten to publish a victim’s data or block access to data permanently unless a ransom is paid, usually via cryptocurrency. For a long time, this type of extortion was one of the most common threats to organizations worldwide. However, the value of Crypto has plummeted in recent years, which has reduced the monetary appeal of once-popular ransomware attacks.

That’s where data exfiltration takes the main stage. Data extrusion is a type of espionage that’s becoming more prevalent rapidly. Rather than holding information or data captive, exfiltration actors will try to extort their victims, threatening to release their confidential information. These malicious actors often threaten to sell or release information to unscrupulous third parties or the public.

Public data exposure through data exfiltration is often considered more dangerous than ransomware. When a ransomware attack is performed, there’s usually an option to pay a ransom to satisfy the hackers, or a company can try to retrieve backups of their data if it’s properly stored. Leaked data, however, may prove to be wholly unfixable and ultimately more detrimental.

Examples of recent data exfiltration and ransomware attacks

Today, cyber-attacks are widespread and frequent. According to the Identity Theft Resource Center, there were over 1,864 data breaches in 2021, which was 68% more than in 2020. Even while organizations continue to improve their firewalls and detection systems, exfiltration actors are still finding a way in.

In April of 2022, the mobile payment company called Cash App reported that a former employee downloaded the personal information and data of over 8.2 million former and current customers. The hacker stole data that included full names, stock trading information, portfolio values, and brokerage account numbers.

On a smaller scale, over 2,000 people had their credit card information stolen from the budget airline EasyJet in 2020. This highly sophisticated cyberattack has been linked to a group of Chinese hackers that had targeted other airlines in the surrounding months. Currently, EasyJet is facing an £18 billion class-action lawsuit from the customers impacted by the data breach.

The examples of data exfiltration and ransomware attacks are limitless. The targeted entities range from oil pipeline operators to companies that protect sensitive personal information. Unfortunately, data theft and ransomware are only worsening, and no company is truly safe. The best way to avoid trouble is to use file management and compression software to keep you and your personal information secure.

Cost of data exfiltration or ransomware attacks for businesses

According to the 2022 cost of a data breach report by IBM and the Ponemon Institute, the average cost of a data breach in 2022 has reached a record high of $4.35 million. The cost of data exfiltration can be extensive. Customer turnover, legal charges, technical activities, loss of brand equity, and drain on employee productivity are just some of the many factors that are adversely affected by ransomware and data breaches.

4 reasons why secure file storage and sharing are essential

Secure file sharing and storage are essential for protecting sensitive information as it travels between users and networks. Without secure sharing platforms, your data can be easily breached. Ideally, an organization should use file-sharing and storing solutions specifically designed for businesses.

WinZip Enterprise® can provide your organization with incredible benefits that keep your data and information safe. There are four reasons why secure file storage and sharing are essential:

1. Enhanced data protection

When employees use unauthorized services, applications, systems, and accounts that don’t meet their company’s security standards, they risk leaking valuable information. Using WinZip Enterprise, managers can uphold standards and security protocols that secure organizational data.

2. Improved collaboration among team members

A secure file-sharing platform, such as WinZip Enterprise, improves collaboration among employees, whether they’re working from the office, home, or at another location. This software makes it simple to share all critical digital assets in one place, ensuring that everyone can find the information and data they need when needed.

3. Safe and effective file sharing capabilities

Many collaboration tools on the market make it difficult to share files without accidentally deleting or damaging them. For example, secure file-sharing platforms enable managers to control employee access levels for shared files, which adds an essential layer of protection. That way, unauthorized people can’t access, view, edit or delete files without permission.

4. Better data accountability

It’s oddly common for organizations to share sensitive files with all or most of their employees, which significantly increases the chance of data theft or exfiltration. Using WinZip Enterprise, administrators can limit what applications users and employees can access to ensure that data doesn’t become compromised.

IT requirements for protecting sensitive data

Every year, the government passes new laws and regulations regarding how companies must protect personal information and data. To date, there have been hundreds of cybersecurity-related laws and regulations enacted over the last four years alone.

Sensitive data that is referred to in these compliance laws include an individual’s:

Address
Health information
Birthday
Social security number
Debit/credit card information
Ethnic or racial data
Religious beliefs
Political standpoints
Biometric or genetic data
Sex or gender identification

In order to adhere to these compliance requirements and mitigate cyber threats, businesses need to take a security-first approach. Below are seven ways for organizations to meet compliance requirements for cybersecurity-related legislation:

Assess risks: Organizations should identify all devices, users, information, applications, and networks. Then, they should categorize these factors as “high-risk” or “low-risk” to assess potential attack vectors.
Set controls: Once organizations recognize their risks, they need to set appropriate controls to ensure this sensitive data is secure from malicious actors.
Monitor control effectiveness: Controls that organizations set in the present day may not be effective in the future. Organizations must continuously monitor controls so that data doesn’t become vulnerable.
Remediate risks: Risks to sensitive information are inevitable. Organizations must be able to identify their weaknesses and prioritize which risks are of the highest priority and need focus first.
Document activities: Organizations must document all processes, activities, and policies to show that their policies and security efforts are effective. This process is closely watched by an auditor who will report on any issues or findings within an organization’s security program.
Report to the Board of Directors or appropriate government body: Much of the legislation passed requires senior leadership to report to them with any issues or updates they may have to protect customer information. If this isn’t done properly, the government can hold corporate leadership responsible.

How WinZip enterprise can help your organization stay safe from data theft

WinZip Enterprise secures, manages, and protects sensitive business data. This fully customizable solution empowers IT admins with streamlined controls over user access, encryption standards, and protocols for storing and sharing information.

Detecting and stopping data exfiltration is key to eliminating data loss. Therefore, solutions like WinZip Enterprise are essential by providing file tracking, which records every instance of a file being moved, edited, or deleted. These insights help organizations review system activity and identify both insider attacks and external threats.

WinZip Enterprise leverages military-grade AES encryption for unsurpassed data protection at rest and in transit. This keeps files safe whether they are in storage or being shared, preventing unauthorized access and associated costly unauthorized data transfers that can result in extortion or even worse acts.

See how WinZip Enterprise can help protect your organization from data exfiltration.

Enterprise data encryption solutions and why your organization needs one

WinZip Blog – March 2, 2023

Data encryption solutions are powerful tools to protect an organization’s confidential information. For example, data encryption can safeguard communications, files, and data stored on a company’s computer systems. When properly implemented, these solutions can help prevent unwanted access to sensitive documents or networks and provide secure data transfer between two points over a network.

While every organization is different, they all need encrypting to some extent. In today’s digital world, organizations need encryption to ensure the security of their sensitive information. Data encryption is a powerful tool to protect data while it is transmitted and stored, ensuring that only authorized individuals can access and use the information in question.

Oftentimes, the best way to secure data is to use a software designed expressly for this purpose, such as WinZip® Enterprise. In this article, we’ll cover what you need to know about enterprise data encryption and why it’s important for your organization.

What is file encryption?

Encryption is the best way to protect data at any stage. Encryption is a way of transforming data into code that only specific recipients can decipher. Essentially, the information becomes manipulated into an unidentifiable format while in transit, only to become readable to the recipient once it reaches its destination.

This security measure prevents unauthorized users from being able to view, understand, and access sensitive information. Agencies, enterprises, organizations, businesses, and even individuals all have data that require safeguarding and encryption.

Without encryption, sensitive and vital information can easily become exposed. Files that need to be restricted and encrypted include, but aren’t limited to, the following:

Legal documents
Financial records and information
Archive data
Personally Identifiable Information (PII)
Patient health information (PHI)
Trade secrets, copyrights, and intellectual property

When organizations fail to encrypt and protect sensitive information, there can be negative consequences. When organizations leak data, it can result in the following:

Fines
Lawsuits
Profit loss
Customer dissatisfaction
Reduced employee retention
Public distrust

Why you need encryption to protect data at rest and data in transit

Data is considered “at rest” when it isn’t actively being used or accessed. Often, this data is stored physically and digitally on databases and computers. The term “data at rest” means the data is not actively moving through any devices or networks.

On the other hand, data in transit, also called data in motion, is a term for information moving from one location to another. This may be across the Internet, from one or more devices, or within a private network.

Data at rest and data in transit are two of the three steps in the data lifecycle. The last stage is called data in motion. Data in motion is regularly accessed for operations such as processing, updating, and viewing. Examples include your banking transaction history and data processed by computing equipment, such as a central processing unit (CPU).

Basic encryption solutions for data in transit or file transfers

There are three standard options used for encrypting file transfer data for internal to external or business-to-business transfers:

FTPS (File Transfer Protocol Secure)
SFTP encryption (SSH File Transfer Protocol)
HTTPS (HTTP Secure)

Unfortunately, basic encryption solutions aren’t enough for the enterprise level businesses. That’s why many organizations use a program like WinZip, which features military-grade encryption. With WinZip, you can add an extra layer of protection over these standard encryption protocols.

FTPS (File Transfer Protocol Secure)

FTPS (File Transfer Protocol Secure) is a secure protocol for transferring files over the internet. It works similarly to standard FTP, but adds an extra layer of encryption and authentication to protect data as it is transferred from one computer to another.

Unfortunately, amongst other things, FTPS does not provide enough robustness against man-in-the-middle attacks, also known as interception attacks, where someone can intercept and modify messages sent between users. Therefore, utilizing enterprise level software, such as WinZip, is recommended for organizations that handle sensitive data.

SFTP encryption (SSH File Transfer Protocol)

SFTP encryption, also known as SSH File Transfer Protocol, works by transferring files through an encrypted channel within an SSH protocol. This allows data to be securely exchanged between two computers.

SFTP encryption may not be ideal for enterprise security because it only encrypts data transferred over the network and does not provide end-to-end encryption. Additionally, like FTPS encryption, SFTP also doesn’t adequately protect against man in the middle attacks because it lacks user authentication.

HTTPS (HTTP Secure)

HTTPS (HTTP Secure) works by encrypting and authenticating data sent between two computers to try to ensure that information remains private and secure throughout the process.

HTTPS encryption is not considered sufficient security for enterprise-level businesses. This is because it only protects data that is sent over the web, not data and applications stored on a company’s server or computer systems. This data may be even more valuable in terms of confidential and sensitive information. Therefore, extra layers of encryption are needed on top of HTTPS encryption.

Common types of data risks at the enterprise level

Data risks are situations where organizations are negatively affected by issues or limitations related to secure data and information. Data breaches can have a catastrophic effect on an organization, both financially and reputationally.

So, what do data risks look like? Some common ways that pose a threat to an organization’s data include:

Data breaches
Cloud-based applications
Human error
Technology challenges
Lack of data processes

The most common type of enterprise data risk is malicious attacks from outside sources. For example, hackers may gain access to sensitive information, such as customer records or financial documents. This type of attack is typically targeted at larger organizations that hold more valuable information, such as banks and retail stores.

Another common type of enterprise data risk is human error or negligence. Employees may accidentally mishandle sensitive information or neglect to follow security protocols properly. For example, they may send confidential emails or documents to the wrong person or leave their workstation unlocked while away from their desk.

Additionally, companies need to be aware of potential insider threats who may have access to an organization’s systems and databases. Insider threats can deliberately leak confidential information or sabotage operations from within the organization.

How WinZip Enterprise can help you mitigate data risks

WinZip® Enterprise protects data in transit and at rest using AES-256 encryption. Advanced Encryption Standard (AES) is a symmetric algorithm commonly used with many different cryptographic protocols, such as TLS and S/MIME.

With this encryption, cyber attackers cannot read the encrypted data even if they access files. This ensures your data (and the data of clients or customers) is protected.

WinZip Enterprise is so much more than just an encryption tool. In addition to its industry-leading cryptography, companies that use WinZip Enterprise also leverage its data management, sharing, compression, and backup functionalities.

Your sensitive data is protected in transit, at rest, and during backups with WinZip. We also offer a variety of advanced security features, such as password protocols and reporting and analytics tools.

Discover why WZE is an industry-leading data encryption solution today!

Encrypting data in transit: What is it and why do you need to do it?

WinZip Blog – February 23, 2023

Data in transit, also called data in motion, is data that is being transferred between two locations over the internet or a private network. When data is in transit, it moves from one location to another, such as between devices, across networks, or within a company’s on-premises or cloud-based storage, i.e., the internet.

So much of our everyday lives involve using data in transit. Some examples of data in transit that we encounter daily include:

Sending an email
Browsing the internet
Sending a text
Accessing information in cloud applications
File sharing with coworkers

Often, the best way to keep data safe, wherever it may be, is to use encryption. Encryption is a way of transforming data into code that only specific recipients can decipher. This prevents outside unauthorized users from being able to view, understand, and access sensitive information. Agencies, enterprises, organizations, businesses, and even individuals all have data that require safeguarding.

When dealing with data in transit, enterprises often choose to encrypt the necessary data before moving or using it to protect it before it leaves its secure location. Similarly, data in use is often encrypted before traversing any external or internal networks.

Threats and vulnerabilities for data in transit

Once data leaves its source location, it is in motion and is considered vulnerable. Unfortunately, in this state, it’s susceptible to insider threats and malicious actors.

One of the most frustrating parts about the relationship between cybersecurity and data in motion is that once it leaves its network, administrators no longer have any control over the data. Therefore, the data in motion is vulnerable, rendering cybersecurity useless.

Data headed to cloud storage also isn’t foolproof. To keep data in motion safe while it’s on its way to the cloud, organizations must be sure that it doesn’t get intercepted.

Even some of the highest security organizations have had their data exposed via the cloud. For example, just last year Microsoft disclosed cloud storage misconfigurations were a major contributor to data breaches. These errors resulted in massive amounts of exposed data.

Furthermore, data sent via the internet is never safe and should always be encrypted. However, that hasn’t stopped large corporations from making simple cyber mistakes.

Clearly, data in motion can be incredibly vulnerable without the proper security and precautions. Analysis, changes to current company procedures, better encryption methods, and cyber security implementations are just some of the ways organizations can keep data in motion safe.

Encryption methods for data in transit

There are two main methods to encrypt and decrypt data in transit. These include:

Symmetric encryption: A temporary key (like a password) that is only used once, for encrypting and decrypting data sent between two different parties.
Asymmetric encryption: Also called public-key cryptography, it uses a pair of related keys (a public key and a private key) to encrypt and decrypt data and protect it from unauthorized access or use.

There are a few main differences between symmetric encryption and asymmetric encryption:

Asymmetric encryption is a new technique, while symmetric encryption is an old technique.
Asymmetric encryption uses two keys (public and private) to encrypt and decrypt data. In contrast, symmetric encryption uses a single key that is shared with the people who need to access the data.
Asymmetric encryption takes more time than symmetric encryption.

Ultimately, asymmetric encryption was created to eliminate the need to share a public key, which was needed for symmetric encryption. Therefore, asymmetric encryption is considered more secure because it uses a pair of public-private keys to encrypt and decrypt data in transit.

Examples of encrypting data in transit

As mentioned, encryption secures data to ensure that communications aren’t intercepted while data is moving between two services. Often, data in transit is encrypted before transmission, authenticated at the endpoints, decrypted on arrival, and then ensured that the data hasn’t been modified.

For example, Transport Layer Security (TLS) is often used to encrypt data in transit for transport security. This cryptographic protocol encrypts data sent over the internet to ensure that bad actors cannot see secure information.

TLS is particularly useful for private and high-risk data, like passwords, credit card information, and other personal information. In addition, companies such as Google use a secure TLS connection when sending information, such as email.

On a similar note, many companies opt to use Secure/Multipurpose Internet Mail Extensions (S/MIME) for email. While TLS encryption encrypts the communication channel, S/MIME encrypts the message sent. As a result, the two can be used simultaneously to secure channels and data more effectively.

How WinZip Enterprise can help you keep your data safe

WinZip® Enterprise protects data in transit and data at rest using AES-256 encryption. Advanced Encryption Standard (AES) is a symmetric algorithm commonly used with many different cryptographic protocols, such as TLS and S/MIME.

With this encryption, cyber attackers cannot read the encrypted data even if they access files. This ensures your data (and the data of clients or customers) is protected.

Explore how WinZip Enterprise can help you encrypt files in transit today!

Encrypting data at rest for maximum security and protection

WinZip Blog – February 16, 2023

Data is considered “at rest” when it isn’t actively being used or accessed. Often, data at rest is stored physically and digitally on databases and computers. The term “at rest” means the data is not actively moving through any devices or networks.

Cybercriminals often target data at rest because it’s easier to acquire. That’s because when data isn’t in use, it’s more likely to be overlooked, lost, or insecure. For example, if someone is storing data on a USB drive, a hacker could easily steal the flash drive, and all information would be compromised.

For this reason, encrypting data at rest is incredibly important. Encryption is a way of transforming data into code that only specific recipients can decipher. This prevents outside, unauthorized users from being able to view, understand, and access sensitive information. Agencies, enterprises, organizations, businesses, and even individuals all have data that are in need of safeguarding.

Additionally, data at rest often consists of important and sensitive information. Database servers and cloud storage can hold large volumes of at-rest data, making them a valuable target for malicious attackers. Therefore, encrypting data at rest ensures organizations don’t become a target for hackers.

Examples of the three different data states

Data at rest is considered the first stage of the data lifecycle. The three stages of the data life cycle include:

Data at rest

As mentioned, at-rest data is stored in a device or database and is not actively moving to other devices or networks. Some examples of data at rest include information that is stored in the following ways:

On a tablet or smartphone.
In database servers or cloud storage.
On a laptop or computer.
On portable storage devices (e.g., solid-state disk drives, USB sticks, and external hard drives).

Additionally, data at rest often consists of important and sensitive information. Some examples of data at rest include:

Electronically protected health information (ePHI)
Financial documents
Intellectual property
Third-party contracts

Data in transit

Also known as data in motion, in-transit data is transported to another location, whether it moves between devices, across networks, or within a company’s on-premises or cloud-based storage.

Examples of data in transit include the transfer of data over:

Public networks, such as the Internet.
Private networks, such as local area networks set up for an office location.
Local devices, such as computers, data storage devices, or other mediums.

Data in use

Data in use is regularly accessed for operations such as processing, updating, and viewing the data.

Examples of data in use include data that is:

Stored in a memory system, database, or application, such as your banking transaction history.
Processed by computing equipment, such as a central processing unit (CPU).
Data that is captured by an input device (such as your keyboard), transferred to a memory device, and then processed by a CPU.

Types of threats/vulnerabilities for data at rest

Data in motion and data in use are considered to be the most vulnerable types of data. This is because these types of data are often transferred over the internet through insecure channels, such as cloud storage or third-party service providers.

These potential locations may have laxer securities policies in place than the security of the corporate networks they’re arriving from. Additionally, data in motion is often the target of man-in-the-middle (MITM). MITM cyberattacks target data as it travels.

However, while an organization’s cybersecurity often protects data at rest, it’s still at risk. Many of the biggest data breaches in the past decade have involved data at rest. Malicious outside actors and insider threats often view data at rest as a high prize. That’s because it usually contains high volumes of information they can steal in big packets.

Another reason why data at rest is vulnerable is due to employee carelessness. It’s possible that data can be lost or stolen if an unauthorized person gains access to a work computer or device. Remote working has increased this threat as employees often take home company-issued devices, leaving them vulnerable to tampering.

How to secure data at rest

Many organizations use antivirus software and firewalls to secure data at rest. However, these tactics never guarantee that data is safe from inevitable cyberattacks.

Phishing attacks are social engineering attacks on individuals that are often used to trick users into handing over data, including login credentials, credit card numbers, or secure company data. Additionally, cybersecurity or encryption software doesn’t protect sensitive company data from insider threats.

When looking to eliminate the threat of employee carelessness, organizations often implement data encryption solutions. These security measures enable companies to encrypt employee hard drives so unauthorized users can’t access them without a key.

Generally, at-rest encryption relies on symmetric cryptography. Here, the same key encrypts and decrypts the data. Symmetric cryptography is often implemented when responsiveness and speed are the top priority, usually with data at rest.

What happens if you don’t adequately protect your data at rest?

Data in all three stages of its life cycle are subject to specific industry standards and regulations. These regulations ensure that crucial information is never lost, misused, stolen, or corrupted. Some common compliance regulations include, but aren’t limited to, the following:

Payment Card Industry Data Security Standard (PCI DSS): If your business handles cardholder data, following PCI DSS best practices can help minimize the risk of a data breach. One such practice is the encryption of data file transmissions.
General Data Protection Regulation (GDPR): The GDPR safeguards the privacy of EU citizens. Encryption is mentioned throughout the GDPR as a preferred method of protecting consumer data and managing the risks associated with transferring data.
Health Insurance Portability and Accountability Act (HIPAA): Companies in the healthcare industry use security protocols—including encryption—to meet HIPAA requirements for protecting sensitive health data.

If organizations do not comply with these regulations, they can expect to be charged high fees. For example, on average, organizations lose $5.87 million in revenue from a singular non-compliance event.

Additionally, the public often loses trust when organizations don’t successfully protect sensitive information. When organizations leak data, it can result in the following:

Fines
Lawsuits
Profit loss
Customer dissatisfaction
Reduced employee retention
Public distrust

How WinZip Enterprise Uses AES to Keep Your Data Safe

WinZip® Enterprise uses AES encryption keys so that you can customize your company’s level of data protection based on your specific needs. Advanced Encryption Standard (AES) is an encryption strategy for any business that needs high-level security measures.

You can combine AES encryption with customizable password security requirements (e.g., letters, numbers, special characters, and capitalization) to make unauthorized decryption virtually impossible.

Although the encryption process is complex, WinZip Enterprise makes it easy for users to operate. Select the encryption level you prefer, set a password, and you’re done. In addition, with the solution’s lightning-fast processors, less time is needed to encrypt large amounts of your most precious data securely.

Explore how WinZip can help your organization better encrypt files at rest today.