Encryption is readily available for new applications in e-commerce, telecommunications and finance. With security breaches commonplace, the need for encryption has become so necessary that various agencies have seen a need to step in and impose regulations. Why is it even necessary to encrypt backup data? The reason is security. Data stored in clear-text is open to attack by everyone.

IT organizations are beginning to realize that the reach and effect of these security laws impacts their procedures and processes. There is currently no specific set of guidelines for compliance within the IT industry. One area of compliance that remains high-risk is that of data storage encryption. For the most part, data transported to off-site storage is not secured and tracked, leaving tapes defenseless against theft, alteration or unauthorized viewing. Encryption appliances for backup tapes are the only way to ensure data at rest is safe.

The California Security Breach Information Act is a cutting-edge law which enforces a rule stating California residents must be notified any time their “personal information” is compromised. Of course, this law imposes strict requirements for public disclosure, the main reason for the increase in reported security breaches across the country. The difference today is that those responsible will have to pay for their mistakes. If an IT Manager fails to properly encrypt company data, the sentences range from suspension to 10 years in prison, with fines from $100 to $1,000,000.

Therefore, concern is steadily growing over an individual company’s current and potential liability. To define what your most critical data is and how best to encrypt that data while at rest requires an in-depth review of current encryption policies, including assessing methods, key lengths and key management. Only after this thorough process will your company be in the position to address these high-risk areas with proper encryption.

Security measures are widely implemented to protect data, however these are not nearly effective enough to provide the security that guarantees the safety of stored confidential records. The answer was to transport backup tapes off-site for protection. However, as corporations grew increasingly computer and Internet savvy, the risk of employee theft, data lost or stolen during transport, environmental damage and theft of discarded tapes grew. Each of these threats brought increased security measures.

However, the biggest threat to confidential information today comes not from the outside, but from the inside. Internet hacking has quickly become the most efficient method of stealing data. Under the new compliance regulations the database administrators (DBA’s) find themselves charged with a high level of duties for which they often feel they do not have the most effective arsenal of tools.

Logic would tell us that the risk personally and to company information and customer privacy is high enough to immediately begin a solid plan of data encryption. Concerned CEOs searching for ways to minimize risk are taking a longer and harder look at cost-effective ways to make data security a priority.

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