How to Apply Encryption Techniques to Bolster Data Loss Prevention

Data loss takes its toll on businesses. With the global average cost of a data breach in 2024 costing $4.88 million, data security is not something to be taken lightly. 

Luckily, your business doesn’t have to end up being part of next year’s statistic. There are plenty of methods you can implement to prevent data loss from occurring. We’ll focus on one in particular in the article: encryption. 

What Do We Mean by Encryption?

In this particular case, we are talking about data encryption, which means the protection of data through encoding it. This renders the data inaccessible to anyone without the correct decryption key. The application of the key transforms the coded data back into readable form. 

With robust encryption you can be sure that only those with the right authority and access can get into your data. This is why it’s so enormously popular as a means of enhancing data security, especially when combined with other security tactics such as role-based access permissions and two-factor authentication. 

Encrypted communications have grown in number in recent years, with the advent of more widespread data transfer among systems and devices (take the Internet of Things, for instance). As they’ve done so they’ve also grown in usability and reliability, so you can use such encryption techniques with confidence. 

Benefits of Encryption

There are several solid benefits to using encryption to assist you with data loss prevention, including:

Most businesses rely on a certain amount of sensitive data being transferred from one part of the business to another. This can be purely electronic, such as happens with migration to cloud, or it can be physical - for instance, by using a USB stick. 

The latter can be enormously convenient, especially if you have a large amount of data to port or an unstable internet connection. However, it can also be enormously easy for a USB stick to end up in the wrong hands. How often do we hear of one being left in a cafe or on a train - out in the open with all the confidential details of countless clients? 

However, if the data on a USB stick is sufficiently encrypted you have a level of security built-in. Even if it's left behind with a newly-emptied latte cup, it likely won’t be readable to anyone without the key. 

When the act of working together involves data being shared among teams, you need to be sure that there are no obstacles to this taking place. If a team is overly concerned about data security to the extent that they’re unwilling to share their information, then you have a situation at odds with effective collaboration. 

When a team is more confident about data security then you have a team that has the right attitude for productive co-work. 

Of course, we should all be mindful of the importance of data security, from the perspective of respecting the sanctity of confidential information relating to an individual or group. It’s a matter of ethics. 

However, it’s more than that. There is a framework of regulations now in place that govern the area of information security. Failure to adhere to data security protocols can result in huge financial and even custodial penalties, as well as a loss of trust from your customer base. 

Depending on whereabouts in the world your business operates, you’ll need to demonstrate adherence to one or more of these regulatory suites. If your business operates in the EU, for instance, then GDPR must be observed. For US activity, your business will need to show Sarbanes Oxley compliance.

Data loss can spell tremendous woe for your business in terms of losing information vital to certain processes, as well as being a PR disaster. So, you need to take data loss seriously. Let’s turn to how you can use encryption in order to do just that. 

Varieties of Data Encryption

There are two broad types of data encryption, and it’s worth understanding the differences in order to ensure you choose the right one for you.

This is where sender and recipient both have the same key. So, before the recipient can read the data, they have to be sure that they are using a key that’s identical to the one used by the sender in the first place. This is not as secure as the next form of data encryption, as the key can be appropriated and used by illegitimate users. On the bright side it’s simple and fast to implement. 

This cybersecurity method ramps up the safety by using two different but mathematically related keys. The sender uses one, and the recipient uses the other. This is a more secure approach based on combining a public-key element with a private-key element. The latter element resides purely with the recipient, so is inaccessible to all other parties. 

Methods of Data Encryption

With those two broad categories in mind, let’s move to more specific data encryption techniques. 

This is a commonly used method that uses an algorithm to turn material on servers and databases into securely encrypted data. It’s an example of symmetric encryption, employing the same key both for at the sending and receiving end of the data transfer. 

This is a technique widely used when information is sent over networks - you may be familiar with it from websites you have visited. It works by allowing web browsers to establish connections with an encrypted site. 

First developed over 40 years ago, this is a secure technique that is still widely used today across a range of applications. It involves the use of both a public and private key, so is an example of asymmetric encryption. 

Implementing encryption techniques

There are several points to remember when applying encryption techniques to bolster data loss prevention. 

Where are the main danger points in your data security framework? Where are the attack vectors likely to be? Using a threat assessment will help you understand where best to apply encryption. 

There’s little point in applying several layers of encryption if there’s a close-to-zero risk of unauthorized access. Do bear in mind that encryption techniques introduce delays and extra costs into data transfer procedures. Consequently, you don’t want them where they’re not needed. 

Additionally, although encryption is an extremely valuable weapon to deploy, but don’t disregard other approaches too. For instance, when doing your audit of SOC 2 controls, think about those USB sticks. Does an employee really need to be carrying them around with them? It’s also worth considering behavioral factors as well as technological ones. 

Encryption is an area that you should get into with the assistance of others. By this, we mean that it’s best to collaborate with other individuals and teams, both inside and outside your company. This way you can get a good balanced picture of what the issues are with your data security. One thing to consider is hiring an external penetration testing expert, who will be able to highlight vulnerabilities and risks you might otherwise have missed.

Getting input from others will help you stay on the right side of compliance too. The regulatory frameworks we mentioned before are fairly detailed, and the potential for misstep is significant. You can minimize it by getting guidance from others in your business with expertise. 

Be sure to use the best encryption solution for your needs. Different techniques have different strengths, so take time to assess the best candidates for the job. 

However, don’t be fooled into thinking that one technique will suffice by itself. There are times when it’s wise to employ a combination of encryption techniques, in order to make the different aspects of your business more data secure. For instance, you may want to use SSL on your websites and AES on your devices. 

Quite often, even the best new strategies struggle when it comes to the deployment stage. This can be because potential pitfalls haven’t been thought through. For instance, have you considered how new encryption techniques will interface with legacy systems? Or whether it’ll have a major impact on transaction speed?

Lastly, you should ensure that you have energetic buy-in from your staff. No amount of encryption or high-tech risk solutions can outweigh an employee that doesn’t understand the system.

Once you’ve introduced your encryption techniques, you should take pains to ensure that everyone in the business maintains your new security stance. If your encryption levels are healthy but an employee fails to adhere to security measures elsewhere, then you have trouble. For instance, if there are slips over password protocols, your operation can be compromised. 

Also remember to regularly look at performance so that you can apply extra attention where needed, either in the shape of updated encryption techniques or new training for team members. 

Decoding Encryption

We’ve shown you how encryption can keep that confidential data from prying eyes, which protects your business and your clients and keeps those eyewatering fines at bay. To get the most out of encryption, make sure to:

By integrating encryption into your data security strategy, you’re taking a proactive approach to safeguarding sensitive information and reducing the risk of costly breaches. But encryption alone isn’t a silver bullet—it should be part of a broader security framework that includes risk assessments, access controls, and regular system reviews. By staying informed, training your team, and continuously evaluating your security measures, you can ensure that your business remains resilient against evolving cyber threats.