# Encryption Best Practices: Protecting Your Data at Rest and in Transit > In an era of constant cyber threats, encryption is non-negotiable. Our guide breaks down the essential best practices for protecting your business's data, whether it's stored on a server (at rest) or Source: https://loopbackup.com/blog/encryption-best-practices-protecting-your-data-at-rest-and-i-mol985g6 Publisher: Loop Backup Content language: en --- In today's digital economy, data is the lifeblood of your business. From customer information and financial records to intellectual property, the data you create and manage is invaluable. As of 30 April 2026, the threat of data breaches continues to grow in sophistication, making robust security measures more critical than ever. At the heart of any effective data protection strategy lies **encryption**. But what is encryption? Simply put, it is the process of converting data into a code to prevent unauthorized access. Think of it as a digital safe for your information. To truly protect your business, you must understand how to secure data in its two fundamental states: when it is being stored, known as **data at rest**, and when it is being moved, known as **data in transit**. ## Understanding the Fundamentals: Data at Rest vs. Data in Transit Protecting your data effectively requires a two-pronged approach, as the vulnerabilities differ depending on whether the data is stationary or moving. Failing to secure both states leaves significant gaps in your company's cyber defence posture. Data at rest refers to any data that is inactive or stored in a persistent state. This includes files saved on a server, documents on an employee's laptop, databases, and, crucially, your backups. This data is a prime target for attackers who gain physical or logical access to your systems. Without encryption, a stolen hard drive or a compromised server means your sensitive data is completely exposed. Data in transit, on the other hand, is data actively moving from one location to another. This occurs when you send an email, when a user accesses your company’s cloud application, or when data is transferred between your servers. While in transit, data crosses various networks, including the public internet, creating opportunities for eavesdroppers or "man-in-the-middle" attacks if not properly secured. ## Best Practices for Encrypting Data at Rest Encrypting data at rest ensures that even if a storage device or server is compromised, the information it contains remains unreadable and unusable to unauthorized parties. This is your last line of defence when physical or perimeter security fails. ### The Gold Standard: AES-256 Encryption When it comes to securing stored data, the undisputed industry standard is **AES-256**. The Advanced Encryption Standard (AES) is a symmetric encryption algorithm trusted by governments, financial institutions, and cybersecurity experts worldwide. The "256" refers to the length of the key, which has a staggering number of possible combinations, making it practically unbreakable by brute-force attacks with current computing technology. This level of security is not just for large enterprises. It is an accessible and essential standard for any business serious about data protection. Whether you are protecting client files, employee records, or business financials, insisting on AES-256 encryption for your software, hardware, and service providers is a critical best practice. It's a core component of any secure [cloud backup for small business](/cloud-backup-small-business) solution. ### Practical Implementation Strategies Implementing encryption for data at rest involves several layers. A great starting point is using the native tools in your operating systems, such as BitLocker for Windows and FileVault for macOS. These utilities provide full-disk encryption (FDE), which encrypts the entire hard drive of a laptop or desktop. This should be standard policy for all company devices to protect data in case of loss or theft. For servers, database encryption is paramount. Tools like Transparent Data Encryption (TDE) for Microsoft SQL Server encrypt data at the file level without requiring changes to applications. Most importantly, your backup and disaster recovery solution must use robust encryption. Backups are a complete copy of your most valuable data, so they must be protected with the same, if not greater, rigor as your live systems. Ensure your backup provider uses AES-256 encryption by default before data ever leaves your network. ## Best Practices for Encrypting Data in Transit Securing data as it travels across networks is just as important as protecting it while it is stored. Unencrypted data moving over the internet can be easily intercepted and read, exposing sensitive communications and credentials. ### The Essential Protocol: TLS (Transport Layer Security) For data in transit, the primary protocol you need to know is **TLS**, or Transport Layer Security. TLS is the successor to the now-obsolete SSL protocol and is the cryptographic standard that powers the secure web (HTTPS). It creates an encrypted tunnel between a client (like a web browser) and a server, ensuring the privacy and integrity of the data being exchanged. It is crucial to use the latest version, currently TLS 1.3, which offers improved performance and security over its predecessors. Whenever you see a padlock icon in your browser's address bar, you are seeing TLS in action. This same technology is used to secure many other forms of communication, including email and API calls. Any application or service your business uses that sends data over the internet should be configured to use a modern version of TLS without exception. ### Securing Your Communications Implementing TLS begins with your own digital properties. All company websites, web applications, and customer portals must be configured to enforce HTTPS, which encrypts the entire communication session. This not only protects your users but also positively impacts your search engine rankings, as browsers flag non-HTTPS sites as "not secure." Beyond web traffic, you must consider other channels. Email servers should be configured to use STARTTLS, which encrypts the connection between email clients and servers. For employees working remotely or connecting to the office network, using a Virtual Private Network (VPN) is essential. A VPN creates a secure, encrypted tunnel over the public internet, effectively extending your secure private network to wherever your employees are. ## Encryption, Compliance, and Trust Strong encryption is not just a technical safeguard; it is a fundamental pillar of business operations and regulatory compliance. Frameworks like the GDPR in Europe and industry-specific regulations like HIPAA in healthcare mandate stringent data protection controls, with encryption being a key requirement. For businesses in specialized sectors, such as [cloud backup for law firms](/industries/solicitors) or financial services, demonstrating robust encryption is essential for meeting legal obligations and avoiding severe penalties. The use of proven encryption standards like AES-256 and TLS is a clear signal to your clients and partners that you take the security of their data seriously. In an age where a data breach can cause irreparable reputational damage, building this digital trust is invaluable. It transforms cybersecurity from a cost centre into a competitive advantage, assuring customers that their information is safe with you. ## Conclusion: Make Encryption a Core Part of Your Security Strategy Encryption is a foundational element of modern cybersecurity that is accessible to every business. By understanding and implementing best practices for both data at rest and data in transit, you can build a formidable defence against cyber threats. Always insist on strong standards like AES-256 for stored data and the latest version of TLS for data moving across networks. Proper encryption is not a choice; it is a responsibility. Protecting your data should not be a complex or burdensome task. At [Loop Backup](/), we simplify security by providing [cloud backup for business](/cloud-backup-for-business) solutions with military-grade AES-256 encryption built-in. We ensure your backups are secure from the moment they are created to when they are stored in our secure data centres, giving you peace of mind. Explore our services today to learn how we can help you safeguard your most critical asset.