TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (2024)

TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (1)

WhatsApp recently announced that they turned on end-to-end encryption for their messaging app, estimated to be used by 1 billion users. In this case, end-to-end encryption secures communication between endpoint devices, such as smartphones or the tablets.

Securing data transferred between different endpoints is important not only through public networks but also in private networks. The data has to be protected if it is business critical or if modification or interception leads to a security incident with a high business impact. Can you imagine if it is easy for cyber attackers to intercept your bank transfers, documents or information about the business strategy or customers, the traffic, modify the data, delete or even redirect it to another server?

Keeping the data secure means ensuring the principle of the CIA triad (Confidentiality, Availability and Integrity); an important concept in information security. Securing the communication by implementing HTTPS, for example, doesn’t ensure confidentiality if the HTTPS communication does not end at the application backend. There is a possibility that data will be modified during the transfer to the final destination, thus the CIA principle is not ensured.

Why is it important to encrypt data even in a private network?

All data transfers are done using a public or private network. The public network is the Internet or any local Internet Service Provider (ISP) network used by customers. Based on lots of research and studies done about the DROWN attacks or other HTTPS-related attacks, there are a lot of servers with wrong HTTPS configurations which endangers the transferred data.

The big problem is that encrypted data needs to be decrypted before being processed by the application logic. This decryption can be done in various devices such as firewalls, load balancers, SSL terminators, web application firewalls, and of course, application backends. The fact that a HTTPS session is terminated before the data arrives at the application backend poses a big issue. That means that if the data is decrypted before reaching the application backend logic, it can be intercepted.

There have been and always will be bad guys who want to hijack the network to get their hands on the data. There are also many other devices such as routers, firewalls, anti-spam filters in the network that can be tampered with or operated by hackers to manipulate communications.

Payload encryption helps when you encounter these issues or need an extra layer of security protection.

Let's imagine that you have an SSL Terminator in your DMZ. The HTTPS traffic is then terminated inside the DMZ at the SSL Terminator. If the data is not encrypted and only HTTPS is in place, the data is in readable form before being sent further inside the private network protected by a firewall. Operators of the firewall can intercept, change or manipulate the data.

It’s important to keep in mind that every device that works with unencrypted data can be manipulated.

Data being decrypted inside a private network

TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (2)

Allowing unencrypted communication even in private networks can incur severe consequences. It is hard to trust that all employees and contractors will know and do the right things when they have access to company servers and sensitive business information. They can intercept the data if the data are not encrypted. Thus, it is up to responsible people, the Application Business Owner, for example, to define the level of importance of the data and how they want to secure it.

If the data contains information about customers, payment transactions, company strategies or unpublished decisions, the impact is devastating.

To make it short:

  • Encrypt the payload transmitted from the client
  • Allow only the application backend to decrypt the data

How SeaCat supports encryption

SeaCat client, SDK, is embedded with a protected mobile application and encrypts transmitted data by the recipient’s certificate. In our solution, this is the application backend certificate. The payload is then transferred via a secure client connection to the SeaCat Gateway where the secure client connection is finally terminated. However, the transferred data is not yet decrypted until it is passed to the application backend.

SeaCat supports this approach to payload encryption, keeping data private until it reaches the application backend, and in doing so, guarantees data protection in both public and private networks.

Data encrypted inside a private network

TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (3)

If your mobile or IoT application is secured by SeaCat and monitored by our Network Security Center, you have payload encryption built-in. To get a true assessment of the architecture and security of your mobile application, please request a FREE Demo. Or, to learn more about TeskaLabs’ SeaCat Mobile Secure Gateway and how we can help you with the security of your mobility solutions, please visit www.teskalabs.com/products/seacat-mobile-secure-gateway.

Contact us

About the Author

TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (4)

Jiri Kohout

TeskaLabs’ VP of Application Security, Jiri Kohout, brings years of experience in ICT security, having served as the Chief Information Security Officer for the Ministry of Justice and Chief Information Officer for Prague Municipal Court. He cooperated with the Czech National Security Agency to prepare the Czech Republic cyber security law.

TeskaLabs Blog · Why Is Data Encryption Necessary even in Private Networks? (2024)

FAQs

Why is data encryption necessary? ›

Encryption conceals data by scrambling it, so that anyone who tries to view it sees only random information. Encrypted data can only be unscrambled through the process of decryption. Encryption is essential for protecting users' online activities.

Why is encryption on a network necessary? ›

Encryption converts information into an unreadable format. It then reconverts that information into its original form. Encryption allows information owners to keep data confidential and secure. It protects their plans or assets from unauthorized actors.

Why is it recommended to encrypt your data even if your account is protected by a password? ›

Encryption provides a robust layer of security by converting documents into unreadable code that can only be deciphered with the correct decryption key. This ensures that even if unauthorized individuals gain access to the encrypted files, they cannot make sense of the information within.

Why is encryption used when sending personal data on a network? ›

Encrypting personal data whilst it is being transferred from one device to another (eg across the internet or over wired or wireless connections) provides effective protection against interception of the communication by a third party whilst the data is in transfer.

What happens if data is not encrypted? ›

Allowing unencrypted communication even in private networks can incur severe consequences. It is hard to trust that all employees and contractors will know and do the right things when they have access to company servers and sensitive business information. They can intercept the data if the data are not encrypted.

Is it better to always encrypt data? ›

As a result, Always Encrypted allows customers to securely store their sensitive data in the cloud, reducing the risk of data theft by malicious insiders.

Why is encryption an important need for everyday life on the internet? ›

It helps provide data security for sensitive information. Encryption is commonly used to protect data stored on computer systems and data transmitted via computer networks, including the Internet. Financial transactions and private messaging communications often use encryption to increase security.

Is it necessary to encrypt? ›

Without encryption, your sensitive data could be vulnerable to attack. For instance, if you store credit card numbers on a server, anyone with physical access to the server could potentially steal those numbers.

Why is encryption important when using WIFI? ›

Encryption scrambles the information sent through your network. That makes it harder for other people to see what you're doing or get your personal information. To encrypt your network, simply update your router settings to either WPA3 Personal or WPA2 Personal.

Why is it important to be sure data is protected and secure? ›

By protecting data, companies can prevent data breaches, damage to reputation, and can better meet regulatory requirements. Data protection solutions rely on technologies such as data loss prevention (DLP), storage with built-in data protection, firewalls, encryption, and endpoint protection.

What does encryption not protect against? ›

Encryption Can't Prevent Accidental Data Loss

No matter how highly-encrypted your data is, it is still susceptible to being transmitted to the wrong recipient via email, or otherwise shared via incorrect attachments or unsecured encryption keys.

Why is it important to encrypt the data at rest on your work Authorised laptop or mobile device? ›

The Bottom Line

You could also permanently lose your data if your physical device is lost or stolen or stops working due to normal wear and tear or an accident like dropping it on a hard surface. To reduce these risks, you should: Encrypt your computer, mobile device, hard drives or other removable media, and files.

Why is data encryption important in network security? ›

Data encryption is important because it helps protect people's privacy, and secures data from attackers and other cybersecurity threats.

Why should you encrypt your network? ›

It helps protect private information, sensitive data, and can enhance the security of communication between client apps and servers. In essence, when your data is encrypted, even if an unauthorized person or entity gains access to it, they will not be able to read it.

Should all personal data be encrypted? ›

Personal data should be stored in an encrypted form to protect against unauthorised access or processing, especially if the loss of the personal data is reasonably likely to occur and would cause damage or distress to individuals.

Why is it important to encrypt and backup data? ›

Data security: Encrypting backups protects your data from unauthorized access attempts. In the unfortunate event that a backup is stolen, encryption ensures that the encrypted data can't be read or, in the case of identity theft, used.

What is the purpose of data encryption standard? ›

Data Encryption Standard (DES) is an outdated symmetric key method of data encryption. It was adopted in 1977 for government agencies to protect sensitive data and was officially retired in 2005. IBM researchers originally designed the standard in the early 1970s.

What is the main reason to encrypt a file? ›

Encryption protects the contents of a file from being read by anyone who doesn't have the encryption key.

How does encryption help us to save data? ›

4. Helping you maintain the integrity of your data. Encryption processes provide an additional benefit that is frequently overlooked but critical for all types of sensitive data. Encryption protects such data not only from theft but also from all forms of tampering.

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