Implementing Data Encryption: A Step-by-Step Guide for SMBs

Feb 7

Small to mid-range businesses (SMBs) are prime targets for cybercriminals because they often do not have established IT departments to assist with implementing “best practices.” And a common best practice to protect Personally Identifiable Information (PII) and other sensitive data is through encryption.

Encryption Explained in Simple Terms Everyone Can Understand

Think of encryption as a lock — even if someone gains access to your data, they can’t read it without the key.

Encryption uses a mathematical algorithm to convert your sensitive data to a random string of binary data, and the key to unlock that random string of data is a secret.

For instance, when you send an encrypted message, instead of sending it in “plaintext” (something everyone can read), you scramble it into something unreadable (“cyphertext”). Only someone with the right key can turn cyphertext back into a readable, plaintext message.

Even though your message may have traversed a public network you don’t control — like the Internet — encryption locks up your sensitive information so that even if cybercriminals intercepted it, they can’t read or use it.

Encryption helps keep your data private and secure, protecting everything from passwords to customer information, financial records, and personal details.

Encryption at Rest vs. Encryption in Transit

There are two ways to think about encryption:

Encryption at Rest. This protects data while it’s stored on a hard drive, a USB device, or in the cloud. Think of it like locking a filing cabinet: even if someone breaks into your office, they can’t read the files without the key. Examples: Encrypted databases, encrypted hard drives like BitLocker for Windows or FileVault for MacOS.
Encryption in Transit. This protects data while it’s being sent from one place to another, like when you send an email or enter your credit card info online. Imagine sending a sealed letter. Even if someone intercepts it, they can’t open it without breaking the seal. Examples: HTTPS websites (that little padlock in your browser), encrypted emails, and VPNs (Virtual Private Networks).

We constantly use both types of encryption to help secure confidential information from unauthorized parties.

Encryption as a Cybercrime Deterrent

Encryption is one of the best defenses against cybercrime because it makes stolen data useless. Here’s why:

Even if hackers steal encrypted data, they can’t read it without the encryption key.
To brute-force attack an encrypted container or message stream, the aggressor has to work through a very complicated mathematical quest to guess at the key. This guessing could take a standard microcomputer hundreds of years. That time it takes to guess the secret — to guess what the encryption key is — is the deterrent.
Encryption discourages attacks because hackers prefer easy targets; low-hanging fruit. Encrypted data means more effort, so they often move on.

Without encryption, stolen data is an open book for cybercriminals. But with encryption, it’s just gibberish unless they have the right key, making it one of the most powerful tools for protecting your business.

Why Encryption Matters

Hackers will target small businesses because they assume you lack security protections. If you store customer details, payment information, or internal business data without encryption, you’re leaving your digital doors wide open. Encryption ensures that even if data is stolen, it remains unreadable.

Imagine for a moment if your laptop left your control, say, it was stolen at an airport, or, you accidentally left it in a hotel room. If the device isn’t encrypted, everything on it — every file, every picture, your cached website access and credentials — is accessible to someone who knows what they’re doing. If you’re feeling a sensation of panic, good: you’re starting to understand the benefit of encryption.

If the device is encrypted, who cares? It would take a standard person using a standard PC upwards of 500 years to guess the secret key and unlock the hard drive, and nobody cares that much about your data.

Step-by-Step Guide to Implement Encryption

Identify What Needs to Be Encrypted. Take an inventory of the confidential information you maintain. Good examples are Electronic PII, financial records, customer databases, and employee information.
Use Full-Disk Encryption for Devices. Enabling built-in encryption on Windows (BitLocker) and macOS (FileVault) protects everything stored at-rest on company devices. Modern phones (Android and iOS) are already encrypted so long as the user has implemented a passcode.
Encrypt Emails and Communications. Ensure the latest protocols are enabled to ensure the greatest extent of email confidentiality in-transit. Perhaps invest in a secure email platform to safeguard email communications.
Secure Cloud Storage with Encryption. Choose cloud providers that offer zero-knowledge encryption, meaning even they can’t access your files. A good example is Google Workspace.
Use Strong Passwords & Multi-Factor Authentication (MFA). Encryption is only as strong as the password protecting it. Ensure all encryption keys are securely stored and not reused.
Regularly Audit & Update Encryption Methods. Cyber threats evolve—so should your encryption. Stay updated on industry best practices.

Small Businesses and Encryption

Encryption isn’t just for big corporations any longer. It’s a must-have for SMBs looking to secure their data and build customer trust. Need help? I know a guy.