Importance of File Encryption: The Key to Data Confidentiality

File encryption encourages data security and online privacy protection. However, the importance of encryption arises from the black hats’ imposition of the lingering threat of data theft. As a solution, modern security tools and encryption methods enable the utmost privacy protection.

Importance of File Encryption

Implementing such encryption techniques significantly minimizes the likelihood of cybercriminals absconding with one’s online data. And this article covers everything about file encryption.

Between 2021 and 2022, with almost 9 incidents reported every hour; cybercrime reports increased by 13%. With each passing moment, we witness the rapid progress of technology. Meanwhile, online privacy and data protection are the most significant value amid upheaving advancements. To ward that off, two-factor authentication, PINs, and passwords are the commonly known privacy protection methods. And data protection implies both – device and online data protection.

After spending an average of 415.5 minutes daily online – the Internet, our home, shelters crucial information related to personal and enterprise data. While advanced problems demand solutions, file encryption is a knight in shining armor. But how does it work? This article covers everything from file encryption to the best method of file encryption. Dive in to learn about it all!

What is File Encryption?

File encryption or data encryption derives from data scrambling, where only a specific code (key) can unscramble it. Simply put, it converts human-readable text into incomprehensible phrases- ciphertext.

To illustrate a file encryption example, FastestVPN encryption uses AES-256-bit encryption. Meaning it’s a symmetric block military-grade cipher that can take years to break. And data theft takes place for easy-to-hack information than making hundreds and thousands of tries to decrypt an almost impossible-to-hack file.

How Does File Encryption Work?

As aforementioned, encrypting files means converting a file or a document into incomprehensible text. Going into the basics, an encrypted file requires you to provide an encryption key – a text or a phrase. Later on, the file is converted into pure gibberish or an incomprehensible document, known as ciphertext.

Meanwhile, the encoding process into ciphertext is done through cryptographic mathematical models known as algorithms. And to gain file access, you’ll need to enter the password (key) to access it.

Despite the significant benefits and learning about file encryption examples, there’s a major downside to file encryption. If you open the file after months or years, you must remember the encryption key; you can never access your file.

Your important document becomes a waste—the reason why it’s essential to keep the password stored somewhere safe. Almost all devices, such as Windows, Mac, etc., can be encrypted. For example, these devices stay protected through FileVault and BitLocker – two compelling encryption tools.

Why Is Encryption Needed – The Importance of Encryption on a Network

Just like we never leave home with its gates open, keeping the doors to your online information closed and secure is essential. After all, you wouldn’t want any prying eyes to sneak a peek at your valuable enterprise data, would you?

In 2022, the US alone encountered 1802 cybercrimes. And 422 million individuals fell prey to data leakage, breaches, and exposure. With that said, there’s no protocol matching file encryption in today’s digital age.

Taking the file encryption example of 2-factor authentication, it’s simply a security layer that restricts login attempts, i.e., it limits unauthorized access to the highest possible extent. The same is the case with file encryption; it protects your data from intruders – almost dissolving the risks of data leaks.

The importance of encryption derives from the barricades you put on a hacker’s path, i.e., to steal information, it’ll have to remove layers of extensive security protocols that will take ages to be accessed. And, majorly, black hats only prey on easy-to-hack information.

Which Files Do You Need to Encrypt?

You always encrypt the most important of your files or those you don’t want to be accessed by prying eyes. This includes sensitive documents, videos, and photos – which can be both personal or work-related.

Also, you don’t have to encrypt sensitive files you know are prone to attacks. File encryption is also necessary for protecting your important files, despite them not being at constant risk of attack.

On the other hand, here are the type of files that you need to encrypt:

Legal Information and Documents

To adhere to data protection regulations, it is necessary to encrypt and safeguard legal information in numerous countries. By implementing encryption measures, your organization can ensure compliance with legal obligations while preserving the privacy of legal teams and advisors.

Enterprise or Commercial Information

In the first quarter of 2023, over 6 million data records were breached. And in the coming years, the stats are only predicted to skyrocket. As a business, safeguarding customer information and contracts is vital due to their vulnerability to potential attacks.

In the event of leaks or unauthorized access to customer offers, contracts, or other sensitive data, your business can face significant consequences. That is why it is imperative to store and encrypt your information securely.

Banking Documents

Commonly, breaches occur due to the lack of authentication, and the banking sector stays under the constant threat of it. Yet, as per a McKinsey report, no industry touches the 50% trust rating for data protection. However, the banking sector must largely encrypt its documents to avoid unfortunate results.

When applying for a loan, financial institutions typically ask for sensitive documents such as tax filings, pay stubs, brokerage statements, identity documents, account statements, and balance sheets.

File encryption is a top use case for banking documents. A helpful way to share these files is to create a password-protected encrypted folder and share the link with your broker or loan officer. Meanwhile, you can also use FastestVPN encryption to make safer online transactions. This method ensures that the encrypted file is transmitted and accessed securely.

What Is the Best Encryption Method for Securing Personal Files?

AES is a data encryption standard widely used worldwide, including by the US government. It provides significant security by allowing data to be both – encrypted and decrypted using the same key, known as symmetric encryption. While symmetric encryption is faster, it’s less secure than asymmetric encryption.

Understanding block ciphers is essential when working with AES, and FastestVPN offers military-grade encryption with a 128-bit block size. Despite some attacks, AES remains uncracked. The most secure version, AES-256, also the FastestVPN encryption, requires more computing power but is considered quantum-resistant, meaning it can withstand the threat of post-quantum cryptography.

FAQs – Importance of File Encryption

FAQs - Importance of Encryption

What is file-level encryption?

This encryption system encrypts files through a third-party software package or a file feature.

Why is encryption needed?

Every file stored in your device should be encrypted, whether videos, photos, or work-related documents - especially those you're sure are prone to attacks. By encrypting a file, you convert it into pure gibberish. And this makes it only harder for hackers to steal information from an encrypted file.

What is the importance of encryption and decryption?

File encryption derives from the inability to access information despite making numerous tried. Comprehensively, it protects data from falling into the hands of cybercriminals. On the other hand, when sensitive information needs to be securely transmitted, it is encrypted at the sender's end and decrypted by the authorized recipient upon receipt. Similarly, taking a file encryption example, it can, at rest, be decrypted for authorized access or processing.


Living in a digital age, accelerated demand for data demands file encryption. And while we spend most of our time online, it’s crucial to use the best VPN, such as FastestVPN, which boasts of using military-grade AES-256-bit FastestVPN encryption, guaranteeing unmatched cybersecurity to its users.

Meanwhile, an encrypted file assures enhanced data protection. Even if you’re downloading from the Internet, FastestVPN encryption can help you ward off all attempts of data breaches.

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