Many organizations, from every sector, have been moving their on-premises IT infrastructures onto the Cloud. To utilize the Cloud, organizations must choose a Cloud Service Provider (CSP). The three biggest CSPs are Microsoft Azure, Google Cloud Platform (GCP), and Amazon Web Services (AWS). Using Cloud Service Providers offer a variety of benefits, including opening organizations to a wider range of customers. When dealing with the Cloud, the CSP is in charge of security of the Cloud, while the user is responsible for the data in the Cloud. But what exactly is a Cloud Service Provider, and what do they do?
What is a CSP?
Cloud Service Providers offer cloud computing infrastructure as a service to developers and businesses, so they can save on computing costs and operate with a larger customer base, while managing less of their IT infrastructure. Cloud services offer a variety of options for organization’s IT infrastructures, including storing, processing, and analyzing of data, protecting data-at-rest and data-in-motion, and developer tools to create your own applications on the Cloud.
CSPs offer these services at varying costs so organizations of any size can utilize their services. Services can be used on-demand, at set time periods, or dedicated hosts can be utilized for constant use. Even among the top three, Cloud Service Providers offer different options for data manipulation, so ensure you pick the right CSP for your requirements, as the infrastructures and APIsused by the Cloud Service Providers are also different.
Types of Cloud Services
There are three main types of Cloud Services:
Infrastructure as a Service (IaaS)
IaaS offer services that would normally be on-premises. These services
can be storage or networking options, servers, or another type of infrastructure service. These CSPs also tend to
offer secondary services, like load balancing, logging, or security options, to complement their infrastructure
options. All of these services are hosted by the Cloud Service Provider, and many are managed by the CSP as well.
Software as a Service (SaaS)
The next type of Cloud Service, SaaS, provides software for productivity,
customer relationship management, and software and human resources management to users. These software options are
hosted over the Internet by the CSP. Many software vendors have been offering cloud-based software recently, as
more
organizations move to the Cloud for their online needs.
Platform as a Service (PaaS)
Platform as a Service providers are the final type of Cloud Service, offer
infrastructure and services for use by software developers. The platform offered can be used for various other
functions as well, but software developers tend to utilize PaaS CSPs the most. Middleware and Operating Systems
are
just some of the examples of the options available for use in PaaS Cloud Service Providers.
Cloud Service are sometimes defined by the type of service they deliver: private, public, hybrid, or multi-cloud. Private clouds are kept within an organization’s walls, for use only by the organization who owns it. Public clouds offer a number of services, and are accessible across the Internet.
The top 3 Cloud Service Providers are considered public clouds. A hybrid cloud utilizes the functions of both private and public clouds, combining the services of each for a better and more secure experience. A multi-cloud architecture uses any number of public, private, or hybrid clouds, that may or may not be connected together.
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There are a variety of reasons so many businesses are moving their services and infrastructure to the Cloud. CSPs offer a way to cut back on the cost of supporting a company’s infrastructure, while also managing many of the services for a company.
This cuts back on the cost of human resources and man hours necessary to properly implement a secure and long-lasting infrastructure. Cloud Service Providers also offer rapid and simple deployment of applications and services, less time spent on marketing services, and potentially stronger compliance with the industry regulations and standards.
Cloud services can be used for many different purposes, including developing and deploying applications. With Cloud services, a wider customer base can be supported while incurring little to no cost. The Cloud can also be used as a Disaster Recovery solution as well.
A backup of on-premises services and infrastructure can be created on the Cloud to be implemented if an on-premises data center were to suffer any outages. Another way the Cloud is used by many organizations is to comply with industry standards and regulations. Since so many different types of industries utilize Cloud Service Providers services, they must comply with the most common regulations seen by organizations, such as HIPAA or FIPS.
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Encryption Consulting provides Cloud Data Protection Services that can help your organization manage your data efficiently on the cloud. We strive to provide solutions tailored to your organization’s needs. Choosing one cloud provider may seem like a daunting task, given all the features they provide, but we can simplify the process for you.
Encryption Consulting offers a number of services and products to assist you with your use of Cloud services such as AWS or GCP. Our AWS Crypto Training trains you on how to efficiently use AWS Cloud Crypto services to stay secure in the AWS Cloud.
This course focuses on industry standard best practices to secure data with AWS. We also offer a suite of utility functions that can be used on the Google Cloud Platform to encrypt data while migrating it to the Cloud, or while storing it within Google Cloud Storage Buckets. To learn more about Encryption Consulting’s services, visit our website.
The X.509 standard is a widely used format for digital certificates. These certificates are used in various internet protocols to verify the identity of the source, which eventually plays an important role in forming trust among users. X.509 certificates are issued by certificate authorities (CAs) and contain information such as the entity’s identity (usually in the form of a domain name), public key, digital signature, expiration date, and other relevant data.
The structure of an X.509 certificate is defined by the X.509 standard, which is maintained by the International Telecommunication Union (ITU) and the Internet Engineering Task Force (IETF). It specifies the format for public key certificates, certificate revocation lists (CRLs), attribute certificates, and certification path validation algorithms.
What is an X.509 certificate?
X.509 certificate is a digital certificate that uses the X.509 Public Key Infrastructure (PKI) standard to verify the ownership of a public key. The certificate can be used for asymmetric or symmetric encryption, which can belong to a user, website, device, or organization. An X.509 certificate contains information about the certificate’s owner and about the certificate itself. Some of the data includes:
Version
The version field indicates the iteration of the X.509 standard used to construct the certificate. Each version may introduce new features, fields, or security enhancements. For example, newer versions might support stronger cryptographic algorithms or provide improved mechanisms for certificate revocation and management.
Serial Number
This serial number serves as a unique identifier for the certificate within the issuing CA’s domain. It’s crucial for distinguishing between different certificates issued by the same CA, preventing duplication or confusion. The serial number is typically a non-negative integer that increments with each new certificate issued by the CA.
Signature Algorithm
The signature algorithm specifies the cryptographic algorithm and parameters used by the CA to generate the digital signature over the certificate’s contents. Common signature algorithms include RSA, DSA, and ECDSA, each offering different levels of security and efficiency. The choice of algorithm depends on factors such as key size, computational overhead, and cryptographic strength.
Issuer Name
This field identifies the entity (typically a CA) that issues and signs the certificate. The issuer’s distinguished name (DN) includes information such as the organization name, country, and possibly organizational unit. Verifying the issuer’s identity is essential for establishing trust in the certificate chain and ensuring that the certificate has not been fraudulently issued.
Validity Period
The validity period specifies the timeframe during which the certificate is considered valid and trustworthy for cryptographic operations. It consists of two components: the notBefore date, indicating the earliest date and time when the certificate becomes valid, and the notAfter date, indicating the expiration date and time. Properly managing the validity period helps mitigate the risk of expired or compromised certificates.
Subject Name
The subject name identifies the entity (e.g., individual, organization, device) to which the certificate is issued. It typically includes information such as the common name (CN), which is often the domain name for SSL/TLS certificates, as well as additional attributes like organization (O), organizational unit (OU), locality (L), state (ST), and country (C). Accurate and up-to-date subject information is crucial for correctly identifying certificate holders.
Public Key
The public key contained in the certificate is used for cryptographic operations such as encryption, digital signatures, and key exchange. It is mathematically related to the corresponding private key, which remains securely held by the certificate holder. The public key enables others to verify signatures or encrypt messages intended for the certificate holder, ensuring secure communication and data integrity.
Optional Extensions
Extensions provide additional metadata or functionality beyond the basic certificate fields defined in the X.509 standard. They allow for customization and specialization of certificates to meet specific requirements or use cases. For example, key usage extensions specify the intended purposes of the public key, while subject alternative name (SAN) extensions accommodate multiple identities (e.g., domain names) associated with the certificate holder. Extensions enhance the interoperability, security, and usability of X.509 certificates in diverse environments and applications.
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The National Institute of Standards and Technology, also known as the NIST, is a United States government laboratory that works to develop, test, and recommend best practices for federal agencies, and other organizations relating to things such as online security. Metrics, measurements, and regulations, like the Federal Information Protection Standard, are created by the NIST to help strengthen the reliability and security of technologies being developed.
All federal organizations are required to follow standards outlined by the NIST in their specific field when they are dealing with confidential, federal data. The standards and regulations set out by the NIST are recognized internationally, meaning any organization that follows the NIST’s standards for their business sector is trusted to be using the correct practices in their technology. NIST standards and regulations have been created for many Science, Technology, Engineering, and Mathematics (STEM) fields, from astrophysics to cybersecurity.
Why should you try and be compliant?
One of the many questions asked by organizations is why should I comply with the NIST’s standards and regulations? The main reason is the amount of testing put into the publications they release. Weeks, months, and sometimes years of testing are implemented into the subject NIST publications are related to before they are released to the public. This ensures that methods and practices proposed in the standards are the most up-to-date and methods available at the time of writing. The research is done by a team of professionals in their field, so the publications released to the public are extremely accurate, both informationally and technically.
Another reason to comply with the NIST’s standards is the fact that it will make your organizations infrastructure and new technologies much more secure. The goal of releasing NIST publications is to provide a more secure environment for both the government and companies in general. The more organizations that follow these standards, the less security breaches and vulnerabilities are available for exploitation by threat actors.
Some regulations, like the Federal Information Protection Standard (FIPS), are required for work with the federal government. This means, any company seeking federal work contracts, will need to be FIPS 140-2 compliant, along with potentially needing to comply with other regulations, depending on the organizations field.
Compliance can also provide your business with an edge over competitors. Those organizations that comply with federal security standards will appeal to customers over those businesses who don’t comply. Those same customers will trust your organization to produce an equally secure product or service in the future, winning your company future business with a recurring client. Some organizations will require compliance with specific regulations if a company wishes to be their vendor. One of these organizations is the United States federal government.
Who needs to be NIST compliant?
All contractors, vendors, subcontractors, and all federal agencies are required to be compliant with NIST standards and regulations if they wish to work with the United States federal government. This is due to the sensitive data that companies working with the government will be manipulating, storing, and processing.
If the data is handled improperly, this could cause a security gap allowing threat actors access to information or services that are meant to be top secret. Certain organizations, as well as local governments, may require those companies wishing to work with them to comply with certain NIST standards and regulations as well.
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One of the easiest ways to follow NIST regulations is to comply with the requirements set forth in the NIST publications. These requirements are specific to each publication, meaning following the requirements of one publication will not guarantee compliance with all NIST publications.
To help your company with being compliant with current and future publications created by the National Institute of Science and Technology, you should utilize the Cybersecurity Framework, created by the NIST. The NIST Cybersecurity Framework does not guarantee compliance with all current publications, rather it is a set of uniform standards that can be applied to most companies.
The NIST Cybersecurity Framework was created to improve the cybersecurity of organizations to prevent data breaches and increase the strength of cybersecurity tactics used by organizations. By implementing a uniform set of standards, organizations following the Cybersecurity Framework will already understand the infrastructure and cybersecurity tactics used by other Cybersecurity Framework organizations. The Cybersecurity Framework is broken into 5 stages, called the Framework Core:
Identify
The Identify stage helps the rest of the Framework Core function properly. This stage provides
transparency into the workings of the tools currently in use, while prioritizing actions for securing critical
infrastructure. Companies implementing this stage will identify all of the software and systems that are critical
to
the organization’s infrastructure.
This helps find unauthorized devices within the network, such as a worker’s
phone
that is accessing their email, which could be used as an attack vector for threat actors. Understanding the
systems
at play in your infrastructure helps identify where most of the secure data is kept, which can then be prioritized
for protection. All data cannot be protected within an organization, thus secure data has a priority for
protection.
Asset management, risk assessment, and risk management strategy are all tasks that fall under the Identify stage.
Protect
The protect phase is focused on reducing the number of breaches and
other cybersecurity events
that occur in your infrastructure. It also handles mitigating the damage a breach will cause if it occurs. This
could mean putting security systems in to prevent or detect data loss, such as intruder prevention systems, or
other
such cybersecurity tools. Identity access and management (IAM) control, training, and data security are just a few
of the processes that fall under the protection umbrella.
Detect
This stage helps with the detection of an intruder once a breach
occurs, as no security system is
100% secure. Once an attacker gets into your organization’s infrastructure, they must be detected and dealt with
in
a timely manner, so they do not have enough time to steal any data or compromise any client systems. The longer it
takes to detect an intruder, the more data that could be compromised. Events, monitoring, and detection are all a
part of the Detect stage.
Respond
The respond stage deals with the response an organization has to a breach. These guidelines help
with developing and implementing a plan to respond to a security breach. If the breach is not secured and the
attacker is given free reign of an organization, then the breach can become worse and worse. Response planning,
communications, analysis, mitigation, and improvements are the steps implemented in the Respond phase.
Recover
The final stage, Recover, deals with the aftermath of a security
breach. A plan for disaster
recovery is created and implemented here. A back-up of all databases and infrastructure should be in place as part
of the recovery plan. This stage includes recovery planning, communications, and improvements for the future.
The Health Insurance Portability and Accountability Act (HIPAA) provides a set of standards to protect the sensitive data of patients. Companies dealing with Protected Health Information (PHI) must have administrative, physical, and technical security measures to be HIPAA compliant.
What is PHI?
PHI stands for Public Health Information.
HIPAA Privacy Rule provides federal protection for PHI held by covered entities. Privacy Rule also permits disclosure of PHI needed for patient care and other important purposes.
Covered Entities
Covered entities are anyone providing treatment, accepting payments or operating in healthcare, or business associates. These include anyone who has patient information and provides support in treatment, payments, or operations. All covered entities must be HIPAA compliant. Subcontractors and other business associates must also be HIPAA compliant.
To determine if you are covered, follow this link.
General Rules
General Security Rules require covered entities to maintain reasonable and appropriate administrative, technical, and physical safeguards for protecting PHI.
Ensuring confidentiality, integrity, and availability of all PHI covered entities create, receive, maintain or transmit.
Identify and protect against reasonably anticipated threats to the security, or integrity of the information.
Protect against reasonably anticipated, impermissible uses, or disclosures.
Ensure compliance by covered entities’ workforce.
Physical Safeguards
Facility Access and Control A covered entity must limit physical access to its facilities while ensuring that authorized access is allowed.
Workstation and Device Security A covered entity must implement policies and procedures to specify proper use of, and access to, workstations and electronic media. A covered entity must also have in place policies and procedures regarding the transfer, removal, disposal, and re-use of electronic media, to ensure appropriate protection of PHI.
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Security Management Process A covered entity must identify and analyze potential risks to PHI, and it must implement security measures that reduce risks and vulnerabilities to a reasonable and appropriate level.
Security Personnel A covered entity must designate a security official who is responsible for developing and implementing its security policies and procedures.
Information Access Management A covered entity must implement policies and procedures for authorizing access to PHI only when such access is appropriate based on the user or recipient’s role.
Workforce training and Management A covered entity must provide for appropriate authorization and supervision of workforce members who work with PHI.
Evaluation A covered entity must perform a periodic assessment of how well its security policies and procedures meet the requirements of the Security Rule.
Technical Safeguards
Access Control A covered entity must implement technical policies and procedures that allow only authorized persons to access electronic protected health information (e-PHI).
Audit Controls A covered entity must implement hardware, software, and/or procedural mechanisms to record and examine access and other activity in information systems that contain or use e-PHI.
Integrity Controls A covered entity must implement policies and procedures to ensure that e-PHI is not improperly altered or destroyed. Electronic measures must be put in place to confirm that e-PHI has not been improperly altered or destroyed.
Transmission Controls A covered entity must implement technical security measures that guard against unauthorized access to e-PHI that is being transmitted over an electronic network.
General Data Protection Regulation (GDPR) is the core of Europe’s digital privacy legislation. “The digital future of Europe can only be built on trust. With solid common standards for data protection, people can be sure they are in control of their personal information,” said Andrus Ansip, vice-president for the Digital Single Market, speaking when the reforms were agreed upon in December 2015.
GDPR applies to all companies which collect and process EU resident’s data. Non-EU companies would need to appoint a GDPR representative and be held liable for all fines and sanctions.
Critical Requirements of GDPR are:
Lawful, fair, and transparent processing
Limitation of purpose, data, and storage Collect only necessary information and discard any personal information after processing is complete
Data subject rights A customer can ask what data an organization has on them and the intended use of the data.
Consent Organizations must ask for the consent of the customer if personal data is processed beyond legitimate purposes. The customer can also remove consent anytime they wish.
Personal data breaches Based on the severity and regulatory, the customer must be informed within 72 hours of identifying the breach.
Privacy by Design Organizations should incorporate organizational and technical mechanisms to protect personal data in the design of new systems and processes
Data Protection Impact Assessment Data Protection Impact Assessment should be conducted when initiating a new project, change, or product.
Data transfers Organizations have to ensure personal data is protected and GDPR requirements are respected, even if a third party does it
Data Protection Officer When there is significant personal data processing in an organization, the organization should assign a Data Protection Officer.
Awareness and training Organizations must create awareness among employees about crucial GDPR requirements
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To achieve GDPR on the cloud, we need to take these additional steps
Organizations should know the location where the data is stored and processed by CSP
Organizations should know which CSP and cloud apps meet their security standards. Organizations should take adequate security measures to protect personal data from loss, alteration, and unauthorized processing.
Organizations should have a data processing agreement with CSP and cloud apps they shall be using.
Organizations should only collect the necessary data that it would need and should limit the processing of personal data any further.
Organizations should ensure that data processing agreement is respected, and personal data is not used for other purposes by CSP or cloud apps.
Organizations should be able to erase data at will from all data sources in CSP.
Payment Card Industry Data Security Standards (PCI DSS) are a set of security standards formed in 2004 to secure credit and debit card transactions against data theft and fraud. PCI DSS is a set of compliance methods, which are a requirement for any business.
Let’s suppose payment card data is stored, processed, or transmitted to a cloud environment. In that case, PCI DSS will apply to that environment and will involve validation of the CSP’s infrastructure, and the client’s usage of that environment.
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In the contemporary digital world, it has become vital to perform transactions that are legitimate and verifiable in the virtual world. The European Association identified the necessity and introduced the eIDAS Regulation in 2014, which stands for Electronic Identification, Authentication, and Trust Services. It is an initiative designed to provide standardized structures and processes that would encourage every country in Europe to implement electronic identification (eID) in contrast with electronic signatures, digital identity verification, authentication, secure electronic transactions, etc.
eIDAS is a key regulation, as it provides essential services like electronic identification, authentication, electronic seals, time stamping, trust services, and electronic delivery services. These services provide the necessary foundation for the support of secure online transactions beyond the borders of the European Union. Thus, it helps individuals, businesses, and government agencies carry out safe transactions across borders and build trust in digital services between countries.
eIDAS plays a crucial role in the transformation of Europe into a Digital Single Market (DSM), which seeks to ensure the seamless online interactions of citizens and entities by introducing greater levels of interoperability across the electronic identification systems of different member states and by covering the provisions of trust services, including electronic signatures that are legally strict. In the framework of eIDAS, the European Union seeks to facilitate cross-border transactions by allowing individuals to use their national eID to prove their identity when accessing other European Union countries, as well as allowing companies to make legal use of electronic payments without all the red tape-paperwork.
The Genesis of eIDAS
In the absence of eIDAS, the situation in the EU concerning digital transactions could be referred to as chaotic, with member states adopting different stand-alone, incompatible electronic identification systems and security measures. Such a scenario proved difficult—if not impossible—for individuals and organizations who had to interact with multiple borders, as there were long, tedious, and ineffective verification processes that lacked standardization in terms of security.
Aside from the operational difficulties, this scenario was also responsible for limiting the uptake of digital services and the conduct of e-commerce within the EU since transactions across borders were problematic for both businesses and individuals. By creating a unified legal framework, eIDAS was established to address these issues, bridging the gap between national systems and laying the foundation for secure, efficient, and standardized electronic interactions across the EU.
eIDAS was first presented in 2014 under the name of “Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market” and implemented throughout the European Union from July 1, 2016, which also canceled the previous eSignatures. This regulation also replaced and repealed the earlier Directive 1999/93/EC on eSignatures. The creation of eIDAS was motivated by several objectives that aim at creating a safe and co-connected digital environment across the EU. The motivation behind creating eIDAS originated from the need for a more secure and reliable digital environment within the EU.
Mission and Objectives of eIDAS
The invention of eIDAS was the result of efforts done by the European Commission to address the challenges posed by fragmented national regulations and incompatible electronic identification (eID) systems across member states. Before eIDAS, each EU country had its own rules and technical standards for eSignatures and eIDs, which created significant barriers to seamless digital interactions. This fragmentation not only hindered cross-border trade but also made it difficult for individuals and businesses to access public and private services in other EU countries. Let us now consider the most fundamental objectives.
Cross-Border eID Interoperability
One of the main features of eIDAS is the ability to cross-edify electronic identification (eID) systems (eID systems from one EU country can be recognized and utilized in another EU country) across national boundaries. This framework of cross-border mobility allows a citizen from one EU country to utilize their national EID to access the services of the government of another member country. Thus, it promotes digital mobility across the union. Consequently, citizens, expats, and even tourists can pursue medical education and financial services without geographical limitations. For instance, Commission Implementing Regulation (EU) 2015/1502 details the minimum technical specifications and procedures for assurance levels for electronic identification means.
Providing Secure Digital Transactions
Another aim of eIDAS is to maintain protective measures during electronic operations, therefore making provision for secure electronic identification and electronic trust services with advanced signatures. It provides specifications on the various components, such as the electronic signature, seal, and timestamps used in the trust services, making sure such transactions are as good as the transactions done on paper.
Advancement of the Digital Single Market (DSM)
eIDAS is meant to enhance the optional single market by making electronic identification and trust services available in all Member States. The aim of the Digital Single Market is to eliminate structural barriers in the provision of services and selling of goods as well as in e-commerce. eIDAS puts in place a legal system as well as operational frameworks to allow citizens and businesses to conduct internet transactions without the fear of their geographical location within the European Union.
Main Concepts of eIDAS
Apart from the identity and trust services discussed earlier, eIDAS also incorporates some core trust services:
Electronic Signatures
Getting the approval and permission to proceed with a document or a transaction gives rise to electronic signatures, which are the digital equivalent of handwritten signatures (also known as wet or cursive signatures). eIDAS also classifies electronic signatures into three categories, which offer varying degrees of security and legal implications:
Simple Electronic Signature (SES)
These are a digital version of wet signatures that can range from typing a name to pushing the ‘I Agree’ button. They are mostly unvalidated and possess very little legal significance.
Advanced Electronic Signature (AES)
AES signatures connect to the user but are tamper resistant and use their personal information, which they alone control to create unique signs. The signer possesses exclusive control over the private key utilized to create the AES.
Qualified Electronic Signature (QES)
The highest standard, QES, is equivalent to practicing a cursive signature. This must come from signing through a Qualified Signature Creation Device (QSCD) and a certificate from a qualified trust services provider (QTSP).
Electronic Seals
Like a stamp, electronic seals provide secure verification of the proprietorship and authenticity of electronic documents, especially by corporations seeking to ensure the validity of some documents. A Qualified Electronic Seal is produced in accordance with regulations implementing qualified e-seal certificates, which are protected by a qualified signature creation device (QSCD).
Electronic Timestamps
As for timestamps controlled under the eIDAS framework, they serve to confirm the existence of a document and its contents after a particular date. This is important in law and finance, especially when evidence of the existence of documents is presented as to the timing when certain documents existed in relation to a regulation or court proceedings.
Electronic Registered Delivery Services (ERDS)
Electronic Registered Delivery Services is a means of securing the transmission of electronic data with a packet that enables the sending, receiving, and confirmation of transactions. This service is frequently applied in high-end security sectors like banking, where protecting data from transmission is of the utmost importance.
A Qualified Website Authentication Certificate (QWAC) is a sort of electronic certificate that is outlined by the eIDAS Regulation, namely to verify the authenticity of a website, gaining more trust in the usage of the website by the showing of who exactly operates the website, therefore helping users from phishing, fraudulent sites, and other cybercrimes.
The eIDAS Knowledge and Learning Programme offers a series of webinars aimed at educating small and medium enterprises (SMEs) about the benefits and implementation of eID and trust services. These webinars cover a wide range of topics that include the introduction to eIDAS resources, the business advantages of electronic identification (eID), and the specific benefits of trust services like electronic signatures, electronic seals, and electronic timestamps. They also highlight the application of eIDAS solutions across various sectors like financial services, online retail, transport, and professional services.
Each webinar provides real life examples and practical implementation tips to help businesses understand how to use eID and trust services to improve productivity, enhance customer experience, and ensure legal certainty. Webinars and PDFs for the eIDAS knowledge and learning program are available here for further learning.
Trust Services under eIDAS
eIDAS has a wide range of importance, but perhaps the most important of them all is how it creates uniformity in the legal landscape pertaining to digital practices in the entire territory of Europe. Many of the trust services that are used, such as electronic signatures and seals, have prescribed legal effects under eIDAS. Specifically, all services that are qualified have the same legal effect as that of their physical counterpart. This legal position helps in the fast integration of technology in various sectors, making it unnecessary to carry out activities in hard copies.
For example, it can be assumed that a qualified electronic signature (QES) is equivalent to a person’s signature, which makes it legal for a business to sign binding contracts with parties in different states around the globe without having parties meet face to face. Such standardization has eliminated most of the in-house meetings and the excessive documentation required, aiding in the efficiency of the business processes and the speed at which transactions are conducted.
Role of Trust Service Providers (TSPs)
Trust Service Providers (TSPs) are crucial actors in the operationalization of trust services as defined by eIDAS. These services include the provision of digitalization elements such as electronic signatures and seals, which come with their own defined level of security. To maintain high trust levels, TSPs undergo thorough trust audits, and only the eIDAS-accredited ones are entitled to become Qualified Trust Service Providers (QTSPs). These are trusted service providers that meet the EU eligibility criteria and are published in the EU Trust List, which allows entities and individuals to identify and engage in services from trusted TSPs.
As of January 2025, the number of trusted service providers in various countries is as follows:
Country
Number of Trusted Service Providers
Italy
34
Lithuania
7
Hungary
7
Czech Republic
9
France
31
Poland
10
Qualified TSPs are not only required to bear compliance costs but they must also be subjected to a heavy degree of regulation and supervision, including by national regulators. This is because the very services provided by the QTSPs approval, which are of utmost importance for the provision of the electronic services, are very likely to be relied upon by the users in a court of law or other legislative bodies.
Advantages of Compliance with eIDAS for Both Entities and People
The enforcement of eIDAS compliance brings a lot of advantages and covers many industries, such as banking, health care, and Internet commerce. A few of them are listed below.
Efficiency of Operation and Cost savings
eIDAS helps organizations cut down on administrative expenses that are incurred due to the use of paper processes. Steps in a transaction that previously required several stages and wet signatures may now be executed entirely online, eliminating wastage of time and resources.
Diminished Risks and Fraud Prevention
eIDAS reduces the chances of fraud in electronic commerce activities because it provides tough security measures for signing any legal document. Furthermore, there are several factors, such as the use of QTSPs and the application of trust service standards, that increase risk management in doing business.
Nurtured Growth of Cross Border Transactions
eIDAS provides for easy penetration and interaction between the member countries to facilitate the citizens and businesses filling out their services and transacting with such countries’ eID even when they are in a different member state. Thus, this eliminates borders and encourages the expansion of digital services as well as e-commerce.
Legal Certainty and Transparency
eIDAS takes a strict legal approach and provides a standard across regions that helps users understand digital transactions clearly within the European Union. Such support of legal certainty enhances confidence and eases the processes of going digital fully without any paperwork involved.
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Failing to comply with the eIDAS regulations can result in serious problems for organizations. Here are the main risks of non-compliance.
Non-compliance can result in situations like invalidation of electronic signatures or making contracts and transactions unenforceable in legal proceedings. Organizations must ensure that they use Qualified Electronic Signatures (QES) to meet eIDAS standards for legal recognition.
A case decided by the Court of Justice of the European Union in 2016 highlighted the risks of using illegal eSignatures in business contracts when the court held that an unqualified electronic signature could not be equated to a signing of a document with a hand-held signature.
While eIDAS itself doesn’t impose direct fines, non-compliance can result in penalties from national regulators, especially if electronic identification or trust services fail to meet required standards. These fines can be significant, especially when tied to broader regulations like GDPR.
In 2021, the Spanish Data Protection Authority (AEPD) fined a fintech company €72,000 for inadequate identity verification measures. This lapse allowed fraudsters to take out a loan in the name of an unsuspecting individual. That was also a breach of GDPR, which indicates the danger of eIDAS non-compliance in monetary terms.
Failure to comply with eIDAS guidelines for secure electronic identification and trust services exposes organizations to security breaches and fraud. Non-compliance can lead to the theft or alteration of sensitive data.
In 2018, a financial institution based in Europe suffered a hack that was directly related to eIDAS and GDPR violations, leading to the leaking of sensitive information and financial data, heavy penalties, and claims for compensation by the organization’s clients.
Non-compliant systems may be rejected by other EU member states, hindering cross-border transactions and affecting international business operations. eIDAS ensures that electronic identification and signatures are recognized across the EU.
In 2020, for instance, a German-based e-commerce business did not comply with eIDAS while using electronic signatures. Hence, it was not able to conduct business with French customers, resulting in the loss of businesses and affected international clients.
Non-compliance can damage an organization’s reputation, leading to a loss of customer trust and business opportunities. Customers expect secure and compliant digital services, especially in regulated sectors.
In 2019, a global document management services organization lost users due to the inability to launch eSignature services that are compliant with eIDAS, demonstrating how the loss of customers due to non-compliance results in damage to the company’s reputation.
Understanding eIDAS 2.0
In an era where digital transactions and online services are increasingly becoming a part of daily life, ensuring security, privacy, and trust in the digital ecosystem is of paramount importance. The European Union has recognized the need for a unified approach to digital identification and has introduced eIDAS 2.0 to address this challenge. This innovative policy aims to provide EU citizens with a secure and reliable digital identity, paving the way for safer digital interactions while empowering individuals to control their personal information.
As a measure directed towards better safety and privacy of digital transactions, the European Commission presented a new policy called eIDAS 2.0 in 2021. The most important aspect of eIDAS 2.0 is the European Digital Identity EUDI Wallet, a digital wallet that is backed by the European government to keep the digital identities and credentials of individuals. The wallet will keep not only identity details but also other private data such as health records and banking details, among others, making it safe for an individual to access both public and private services.
As it stands, 14 European member states have electronic ID modalities covering 59% of their citizens. It will come as no surprise, therefore, that by the year 2030, the European Commission would like to see 80% of the citizens of the EU having and actively using a digital ID, thanks to eIDAS 2.0. GDPR stresses the consent and control of the individuals for their data; therefore, in accordance with its provisions, every person has a right to choose how their data can be used.
With the aid of The European Digital Identity (EUDI) Wallet, users can easily manage their personal details when participating in online transactions, thereby increasing the confidence of the users to transact digitally. It aligns with GDPR’s focus on giving individuals control over their personal data.
Both frameworks are built upon the same conceptual background, providing for the availability of specific data security features to ensure the safety of personal data from unauthorized access and information breaches. eIDAS 2.0 facilitates the ability to share and use digital identities without compromising privacy by letting, among other things, requests for users access and request the erasure of their data, which is consistent with the principles of data protection by European regulation.
Key Features of eIDAS 2.0
eIDAS 2.0 envisions a few features to empower digital identity security and trust while giving users more control over their interactions with digital services within the EU. The updates prevent the security and versatility of digital identification from being compromised, bringing it into wider usage in various fields.
Self-Sovereign Identity (SSI) Enhancements
SSI enables every person to control what, when, and how much information they choose to share regarding their identities. For example, suppose a service only requires that a user’s legal age is above a certain limit. The said individual will then only furnish the service with age confirmation and nothing else.
Additional Trust Services
In eIDAS 2.0, the scope of trust services is broadened to include additional ones like electronic archiving and add-on ledger services.
The Interoperability for Both Public and Private Sector Compliant
In eIDAS 2.0, standards are clearer for private sector compliance, which means that businesses can develop solutions that are secure and interoperable while protecting user information.
Impact on Businesses
Integrating electronic identification and trust services (eIDAS) into your business offers significant benefits in user experience, security, and efficiency. It’s not just about compliance—it’s about building trust, simplifying processes, and unlocking growth opportunities.
eIDAS ensures smooth, hassle-free transactions and enhances customer satisfaction. The European Commission notes that introducing electronic identification and trust services into businesses can improve customer experience and trust. Its seamless processes make cross-border services easy and attract a broader audience.
eIDAS strengthens security and legal assurance, especially in industries like finance and healthcare. For example, Qualified Electronic Signatures (QES) makes contracts tamper-proof and legally binding and reduces fraud-related losses.
Automation through eIDAS accelerates workflows and cuts administrative task times. It also reduces manual errors and saves time and money. Onboarding clients or processing transactions that once took days can now be done in minutes.
eIDAS simplifies secure transactions across EU borders and allows businesses to expand. It is especially useful for high-value or restricted goods and services. A study by the European Union Agency for Cybersecurity (ENISA) revealed that 90% of respondents believed eIDAS to be an opportunity to grow their business.
Whether you have a small startup or a large corporation, eIDAS helps you build trust, enhance operations, and grow your customer base securely. It is not just a compliance tool but a gateway to smarter, safer, and more efficient business practices.
How can Encryption Consulting help?
Encryption Consulting provides specialized advisory services to help organizations achieve compliance with eIDAS (the EU regulation on electronic identification and trust services). Our services cover a broad spectrum of guidance, from secure digital identity management to adherence to strict cryptographic standards required under eIDAS.
By conducting in-depth assessments, Encryption Consulting identifies an organization’s current compliance level and highlights areas for improvement. We assist in setting up Public Key Infrastructure (PKI) solutions customized to eIDAS mandates, which ensure the secure issuance, management, and revocation of digital certificates. Additionally, Encryption Consulting offers expertise in implementing robust electronic signatures and seals that meet the advanced and qualified signature requirements outlined in eIDAS.
Our advisory services also extend to risk management and data protection protocols, which are critical for maintaining trust and regulatory alignment. Through thorough audits and custom roadmaps, we help organizations manage the intricacies of eIDAS compliance. Our real-world expertise enables us to support clients with detailed compliance strategies, ensuring secure digital transactions across borders, reducing regulatory risks, and fostering a legally compliant environment for electronic interactions.
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The eIDAS regulation has made it possible to conduct remote transactions in the EU within a common understanding of safe and legally acceptable electronic interactions. eIDAS has fitted and laid the foundational stones for the security of all the economic e-interactions within the region. With the introduction of eIDAS 2.0 in a year, the EU is set to expand the reach of the existing framework and give citizens a single digital ID that will streamline and secure the use of online services in both the public and private sectors.
The eIDAS Regulation, from this standpoint, is not only a legislative requirement, but it is also an integral part of the strategic plan for building a safe, effective, and cohesive digital single market in Europe.
Keeping sensitive data, such as Personally Identifiable Information (PII), secure in every stage of its life is an important task for any organization. To simplify this process, standards, regulations, and best practices were created to better protect data. The Federal Information Protection Standard, or FIPS, is one of these standards. These standards were created by the National Institute of Science and Technology (NIST) to protect government data, and ensure those working with the government comply with certain safety standards before they have access to data. FIPS has a number of standards released, but this article discusses FIPS 140-2.
What is FIPS 140-2?
FIPS 140-2 is a standard which handles cryptographic modules and the ones that organizations use to encrypt data-at-rest and data-in-motion. . To ensure compliance with cryptographic standards, FIPS 140-2 specifies the use of FIPS 140-2 compliant algorithms for data encryption. FIPS 140-2 has 4 levels of security, with level 1 being the least secure, and level 4 being the most secure:
FIPS 140-2 Level 1- Level 1 has the simplest requirements. It requires production-grade equipment, and atleast one tested encryption algorithm. This must be a working, 140-2 validated encryption algorithm, meaning it has been rigorously tested and authorized for use.
FIPS 140-2 Level 2- Level 2 raises the bar slightly, requiring all of level 1’s requirements along with role-based authentication and tamper evident physical devices to be used. It should also be run on an Operating System that has been approved by Common Criteria at EAL2.
FIPS 140-2 Level 3- FIPS 140-2 level 3 is the level the majority of organizations comply with, as it is secure, but not made difficult to use because of that security. This level takes all of level 2’s requirements and adds tamper-resistant devices, a separation of the logical and physical interfaces that have “critical security parameters” enter or leave the system, and identity-based authentication. Private keys leaving or entering the system must also be encrypted using FIPS 140-2 complaint algorithms, such as AES, 3DES, RSA, DSA, ECDSA etc., before they can be moved to or from the system.
FIPS 140-2 Level 4- The most secure level of FIPS 140-2 uses the same requirements of level 3 and desires that the compliant device be able to be tamper-active and that the contents of the device be able to be erased if certain environmental attacks are detected. Another focus of FIPS 140-2 level 4 is that the Operating Systems being used by the cryptographic module must be more secure than earlier levels. If multiple users are using a system, the OS is held to an even higher standard.
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One of the many reasons to become FIPS compliant is due to the government’s requirement that any organization working with them must be FIPS 140-2 compliant. This requirement ensures government data handled by third-party organizations is stored and encrypted securely and with the proper levels of confidentiality, integrity, and authenticity. Companies desiring to create cryptographic modules, such as nCipher or Thales, must become FIPS compliant if they want the vast majority of companies to use their device, especially the government. Many organizations have developed the policy of becoming FIPS 140-2 compliant, as it makes their organization and services seem more secure and trusted.
Another reason to be FIPS compliant is the rigorous testing that has gone into verifying the strength behind the requirements of FIPS 140-2. The requirements for each level of FIPS 140-2 have been selected after a variety of tests for confidentiality, integrity, non-repudiation, and authenticity. As the government has some of the most sensitive information in the nation, devices, services, and other products used by them must be at the highest level of security at all times. Using services or software without these tested methods in place could lead to a massive breach in security, causing problems for every person in the nation.
Who needs to be FIPS compliant?
The main organizations that are required to be FIPS 140-2 compliant are federal government organizations that either collect, store, share, transfer, or disseminate sensitive data, such as Personally Identifiable Information. All federal agencies, their contractors, and service providers must all be compliant with FIPS as well. Additionally, any systems deployed in a federal environment must also be FIPS 140-2 compliant. This includes the encryption systems utilized by Cloud Service Providers (CSPs), computer solutions, software, and other related systems. This means only those services, devices, and software that are FIPS compliant can even be considered for use by the federal government, which is one of the reasons so many technology companies want to ensure they are FIPS 140-2 compliant.
FIPS compliance is also recognized around the world as one of the best ways to ensure cryptographic modules are secure. Many organizations follow FIPS to ensure their own security is up to par with the government’s security. Many other organizations become FIPS 140-2 compliant to distribute their products and services in not only the United States, but also internationally. As FIPS is recognized around the world, any organization that possesses FIPS compliance will be seen as a trusted provider of services, products, and software. Some fields, such as manufacturing, healthcare, and financial sectors, along with local governments require FIPS 140-2 compliance as well.
Windows FIPS Mode
Windows FIPS mode is a configuration setting in Windows operating systems that requires the usage of FIPS 140-2 verified cryptographic methods. When on, it guarantees that encryption and decryption procedures only employ authorized cryptographic methods and key lengths.
What is FIPS Code?
A FIPS code is a numeric code that uniquely identifies geographic areas in the United States. The number of digits in FIPS codes vary depending on the level of geography. State-level FIPS codes have two digits, county-level FIPS codes have five digits of which the first two are the FIPS code of the state to which the county belongs. For example: A FIPS code of 06071 represents California (-06) and San Bernardino County (-071)
Companies in every sector must comply with standards and regulations, and one of the best ways to do this is to utilize encryption. Encryption takes data that can be clearly read, also known as plaintext, and runs it through an encryption algorithm, such as symmetric key encryption or asymmetric encryption, depending on the security needs. An encryption algorithm uses a key and mathematics to convert the plaintext into ciphertext, which is an undecipherable collection of letters and symbols. The process of encryption can be reversed using the same key or the other key in a key pair, which is in a process called decryption. There are two different types of encryption: asymmetric and symmetric encryption, commonly referred to as asymmetrical vs symmetrical models. A most common question is: “Does the Caesar cipher use the symmetric encryption model?” Well, the Caesar cipher is a symmetrical encryption method based on substitution.
What’s the Difference between Asymmetrical and Symmetrical Models?
Symmetric encryption involves the use of one key for both encryption and decryption. The plaintext is read into an encryption algorithm along with a key. The key works with the algorithm to turn the plaintext into ciphertext, thus encrypting the original sensitive data. This works well for data that is being stored and needs to be decrypted at a later date, especially when symmetric key encryption is applied. The use of just one key for both encryption and decryption, as in symmetric ciphers, reveals an issue, as the compromise of the key would lead to a compromise of any data the key has encrypted. This also does not work for data-in-motion, which is where asymmetric encryption comes in. The simplicity and speed of symmetric cryptography are not disadvantages, making it suitable for high-speed data encryption.
Asymmetric encryption works with a pair of keys, distinguishing it from symmetric key algorithms that use a single key. The beginning of asymmetric encryption involves the creation of a pair of keys, one of which is a public key and the other which is a private key. The public key is accessible by anyone, while the private key must be kept a secret from everyone but the creator of the key. This is because encryption occurs with the public key, while decryption occurs with the private key. The recipient of the sensitive data will provide the sender with their public key, which will be used to encrypt the data. This ensures that only the recipient can decrypt the data, with their own private key. Elliptic Curve Cryptography (ECC) is an asymmetric algorithm that is efficient in securing key exchanges and asymmetric authentication.
Uses for Asymmetric and Symmetric Encryption
Asymmetric and symmetric encryption are each better used for different situations. Symmetric encryption, with its use of a single key, is better used for data-at-rest. Data stored in databases needs to be encrypted to ensure it is not compromised or stolen. This data does not require two keys, just the one provided by symmetric encryption, as it only needs to be safe until it needs to be accessed in the future. Symmetric algorithms use two mathematically related keys. Asymmetric encryption, on the other hand, should be used on data sent in emails to other people. If only symmetric encryption were used on data in emails, the attacker could take the key used for encryption and decryption and steal or compromise the data. With asymmetric encryption, the sender and recipient ensure that only the recipient of the data can decrypt the data because their public key was used to encrypt the data. Both types of encryption are used with other processes, like digital signing or compression, to provide even more security to the data. For instance, RSA, a form of asymmetric encryption, is used in Public Key Infrastructure (PKI). Is RSA symmetric or asymmetric? RSA is classified as asymmetric encryption and is frequently used for secure data transmission. Now, another question arises: is AES encryption symmetric or asymmetric? AES is widely used for secure data encryption and is classified under symmetric encryption.
Common Asymmetric and Symmetric Encryption Algorithms
While asymmetric encryption is often recognized as being more advanced than symmetric encryption, organizations still use both cryptographic techniques in their security strategies. For example, symmetric encryption (RC4) is ideal for maximizing the speed of bulk data encryption or to secure communication within closed systems. On the other hand, asymmetric encryption is more beneficial for open systems where the priority is securing key exchanges, digital signatures (DSA which is an asymmetric algorithm), and authentication, particularly in cases like TLS symmetric or asymmetric models. For example, PGP and Diffie Hellman are used to encrypt emails and files and are examples of asymmetric encryption.
Here is a comparison table between symmetric and asymmetric encryption.
Asymmetric Encryption
Symmetric Encryption
Definition
A two-way function that takes in plaintext data and turns it into undecipherable ciphertext. This process utilizes a public key for encryption and a private key for decryption, which is true of asymmetric encryption models.
A two-way function that takes in plaintext data and turns it into undecipherable ciphertext. With symmetric encryption, a cipher (symmetric cipher) is known to use the same key for both encryption and decryption.
Use Cases
Digital Signing: Asymmetric encryption is much better for digital signing compared to symmetric encryption, especially as using an asymmetric cryptosystem provides additional security benefits. The use of both a public and private key means the identity of the signer of the data can easily be known. The signer uses their private key for encryption, while the recipient verifies their identity with their public key. As only the public key of the signer can decrypt data encrypted with the signer’s private key, the identity of the signer is verified when the data is decrypted.
Blockchain: Again, the identification of the user during cryptocurrency transactions is much easier done with asymmetric encryption.
Public Key Infrastructure (PKI): The identity of key owners is proven with certificates in PKI, and thus asymmetric encryption is the better choice in PKIs.
Banking: Encrypting sensitive customer data in banks is extremely important, as is decrypting that information as quickly as possible. For this reason, symmetric encryption is the preferred method of encryption in banks, as one-key encryption is much swifter than two-key encryption.
Data Storage: As with banking, data storage services and products tend to use symmetric encryption. This method is much quicker for encrypting and decrypting data needed in a timely manner, making it preferable for scenarios where symmetric key encryption is desired for efficiency.
Advantages
The loss of the public key does not result in the compromise of data, unlike with symmetric cryptography, where losing the key compromises data security, so symmetric key exchange is important.More secure than symmetric encryption
Only the owner of the private key can decrypt the data sent to them, which is a core characteristic of asymmetric encryption
Simpler to implement
Faster than asymmetric encryption
Protects data from compromise
Disadvantages
Slower than symmetric encryption
More complicated to implement than symmetric encryption
Loss of a key means any data encrypted with that key can be compromised
The adoption of technology is a must to keep data safe throughout each stage of its lifecycle. Organizations can choose from data protection methods such as encryption, masking, tokenization, etc, but they often face difficulty in deciding on the right approach.
A common misconception within the data community is that encryption is considered a form of data masking. In this article, we will provide an overview of encryption and data masking, and show how they differ from each other.
Definitions
Encryption works by encoding the original data, or plaintext, with the help of sophisticated algorithms that convert it to unreadable text or ciphertext. A decryption key would be needed to revert the ciphertext to a readable format. Encryption is used to protect sensitive data, such as payment card information (PCI), personally identifiable information (PII), financial account numbers, and more.
Data masking, also called data obfuscation, is a data security technique to hide original data using modified content. The main reason for applying masking to a data field is to protect data that is classified as PII, sensitive personal data, or commercially sensitive data. However, the data must remain usable for the purposes of undertaking valid test cycles. Data masking meets the requirements of most privacy laws including GLBA, HIPAA, GDPR, PCI DSS, PIPEDA, CCPA, etc.
There are a few different types of masking. Below is a look at the three main types of data masking:
Static Data Masking
Static data masking refers to the process in which important data is masked in the original database environment. The content is duplicated into a test environment, and can then be shared with third-party vendors or other necessary parties.
Dynamic Data Masking
In dynamic data masking, automation and rules allow IT departments to secure data in real-time. That means it never leaves the production database, and as such is less susceptible to threats.
On-the-fly Data masking
Like dynamic data masking, on-the-fly data masking occurs on demand. In this type of data masking, and Extract Transform Load (ETL) process occurs where data is masked within the memory of a given database application. This is particularly useful for agile companies focused on continuous delivery.
How does data masking works?
Every single business has sensitive data, whether they are trade secrets or employees’ social security numbers, thus all sensitive data must be protected. Data masking obscures sensitive information and replaces it with proxy data.
Data masking works by shielding confidential data, such as credit card information, social security numbers, names, addresses, and phone numbers, from unintended exposure to reduce the risk of data breaches. It minimizes the risk of data breaches by masking test and development environments created from production data, regardless of the database, platform, or location.
Data masking technology can integrate with existing authentication solutions, including Active Directory, LDAP, and Identity Access Management software, and it complements other data protection technologies such as encryption, database activity monitoring (DAM), and security information and event management (SIEM), collectively providing comprehensive data privacy protection.
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One of the most valuable tools of data masking is that once the information is masked, it is irreversible. Using the employees’ example above, you would not want to make a client’s credit card or banking information available to people working at your call centers. This would expose your clients to identity theft and your business to potential litigation. Your employees will still be able to read some of the information but will not be able to unmask what you have obfuscated.
With encryption, information is completely scrambled and illegible to anyone who sees it. However, the intended recipient would be able to unscramble the information once it is received.
Encryption is ideal for storing or transferring sensitive data, while data masking enables organizations to use data sets without exposing the real data. Whichever method gets used, it is essential that the encryption keys and algorithms used to mask data are secured to prevent unauthorized access.
Both encryption and data masking enable enterprises to remain compliant as they reduce the risk of sensitive data being exposed. Masked data remains usable for development and QA teams in production and testing environments, while encrypted data is challenging to work with.
Pick the best data masking and data encryption for your Business
Depending on what type of protection you need and the amount of information that needs to be concealed, there is a myriad of options available for you. If you are at a loss about how to move forward with data masking, Encryption Consulting can help. Contact us and let us talk about what we can do for you.
