Your Digital Safe

When you use a financial app or a website, you are entrusting that company with your most sensitive personal information. So, how do they protect your data from hackers and thieves? The answer, in a word, is encryption.

Encryption is the process of converting your data into a secret code that can only be read by someone with the right key. It's like putting your data in a digital safe that can only be opened with a unique combination.

What Is Encryption, and How Does It Work?

Encryption is a process that uses a mathematical algorithm to scramble your data into an unreadable format. The only way to unscramble the data is to use a special key. There are two main types of encryption:

Symmetric Encryption: Uses the same key to both encrypt and decrypt the data. This is like having a single key that can both lock and unlock a safe.

Asymmetric Encryption: Uses two different keys: a public key and a private key. The public key can be shared with anyone and is used to encrypt the data. The private key is kept secret and is the only key that can be used to decrypt the data.

Why Encryption Is So Important

  • It protects your data at rest. When your data is stored on a server, encryption ensures that even if a hacker manages to steal your data, they will not be able to read it without the key.

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  • It protects your data in transit. When you send data over the internet, encryption ensures your data is protected from being intercepted and read by unauthorized users.
  • It's required by law. Many industries, including the financial industry, are required by law to use encryption to protect their customers' data.

How to Make Sure Your Data Is Being Protected

  • Look for "https" in the URL. The "s" stands for "secure" and means the website is using encryption to protect your data.
  • Read the privacy policy. Look for a section on security that explains what kind of encryption the company uses.
  • Use reputable companies. When it comes to your financial data, it's important to use a company that you trust and that has a good reputation for security.
  • Look for security certifications. Certifications like SOC 2, ISO 27001, and PCI DSS indicate that a company has undergone rigorous security audits.

Action Steps

  1. Check every financial website you use for "https" in the URL.
  2. Review the privacy policies of your top 3 financial apps.
  3. Research the security certifications of any new financial service before signing up.
  4. Use a VPN when accessing financial accounts on public Wi-Fi.
  5. Enable full-disk encryption on your phone and computer.