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 Everything you need to know about the stuff that keeps corporate secrets safe online.

It's no secret that not a lot on the web is secret. In fact, most people with an Internet connection and a bit of free time can find out plenty about all kinds of people and subjects without a whole lot of effort. With the Internet capable of transmitting everything from pedestrian e-mail to highly sensitive proprietary company information with equal speed and confidence, the danger of information being intercepted and read by prying eyes is very real. That is why the wise business executive needs to understand the basics of encryption, the science of coding information that travels electronically. After all, responsibility for the security of your company and its assets ultimately rests at the top. Encryption is a murky world, but a fascinating one, inhabited by lines of code, denizens called cryptographers and a healthy dose of acronyms. (And math. Lots and lots of math.) But just what is the stuff? And what does its use mean to you and your business? Let us venture into this sureal world where we will try to help answer these questions. The mission, if you choose to accept, understand encryption.

The single biggest question for the newly initiated to the information security world is, what's the difference between security and encryption?

Security encompasses a whole bunch of different things, right down to whether or not your extra computers are safely locked in storage, your employees scribble their passwords on little sticky notes and even how physically secure your building is. Encryption, the act of scrambling electronic information so that even if someone intercepts it he can't read it, is only one piece (albeit a generous one) of the security pie.
Encryption roots go back to the ancient Egyptians (think hieroglyphics and the Rosetta Stone), and it played a starring role on the world stage in the 20th century (think Enigma and the Allies breaking German code during World War II and let us not forget the Russians and the Cold War). But as business technology has matured and security threats have become more pronounced during the last decade, encryption has come into its own as a mainstream business necessity.

Looking for a brief history of Encryption?

How does an encrypted message travel?

Rijndael. No that is not a typo, it's the newest encryption standard. Check here for more detailed information.

A piece of information is encrypted using two parts: an algorithm and a key. The algorithm is a mathematical formula that uses a key (a series of characters) to turn data into cipher text, mixing and blending the data until it looks like a bunch of gibberish. On the other end, another key unscrambles the data, turning it back into plain text. The strength of an encryption system depends not only on the strength of the algorithm that governs it, but also on how carefully the keys used to encode and decode the information are developed and cared for. With most modern encryption systems there are so many possible key combinations that a computer would have to spend hundreds of thousands of years to try all the different combinations. The more bits, or pieces, a key has, the harder it is to break it. That means most properly encrypted pieces of information are pretty safe.


But I always misplace my house keys. If I use encryption, do I have to keep track of another set?

That depends on what sort of key you're using. There are two different types of keys: public and private. A public key can live anywhere, on a website, on a Post-it note, or it can travel from one person to another through e-mail or another public channel. If you use a private key, it lives on your hard drive or in another secret place.

To communicate with encrypted messages, two people need to agree on what key they're going to use to code and decode a message. It's like saying to a friend, "OK, let's talk in pig latin for the next five minutes." If this communication gets neglected, the message recipient won't be able to make heads or tails of the encrypted information. It's like asking someone to feed your cat while you're away, but forgetting to give them the house key.
There are two types of encryption, symmetric and asymmetric, and they use different types of keys. Symmetric encryption uses a private key for both encoding and decoding a message. Asymmetric encryption uses a private key for the encoding and a public key for the decoding, or vice versa.

Let's say Joe sends a message to Mary encrypted with his private key. Because Joe's private key is related to his public key, he tells Mary what his public key is, and she uses that to decode his message. But Mary can't figure out what Joe's private key is by his public one, so he can use that private key again and again to communicate with other people.

Is encryption just for sending messages from one person to another?

Not at all. Many types of encryption negotiations go on behind the scenes all the time and remain invisible to users. Take Internet shopping. When Mick the music fan types his credit card number into Ticketmaster's website, Mick's computer's browser, which has built-in encryption technology, takes responsibility for the transaction. The browser negotiates with Ticketmaster's server and keeps Mick's credit card numbers away from prying eyes. A similar thing happens when you enter your PIN into an ATM; encryption turns that PIN into a key that unlocks your account information.

Does Uncle Sam have anything to do with encryption?

Funny you should ask. In October of 2000 the National Institute of Standards and Technology (NIST) chose a new encryption standard called Advanced Encryption Standard,or AES for short, that government organizations will be required to use. Like sheep, others will migrate to the new standard. The banking industry has historically used NIST standards, joining the government in one big, happy standard algorithm party. But why use a standard? Because the NIST, the arm of the Department of Commerce that monitors standards, regularly tests encryption standards to ensure that they are still valid. The more industries that adopt the NIST's encryption standard, the closer the world comes to having all systems speak the same encryption language, the elusive "interoperability" that IT people are always going on and on about.

How do I know what I need to encrypt?


Keep in mind that for the most part anything you send over the Internet without encryption is fair game for interception. So if you are sending sensitive company documents in an e-mail (probably not a good idea, anyway), you should make sure you and the recipient use encryption.

Password protection and a bit of luck are not enough to keep the files on your hard drive safe. Software that breaks through the weak password barriers most systems use is not only cheap but readily available, so only encrypted information is truly safe.

As a businessperson, how much do I need to know about this?

While nobody expects a business executive to develop a personalized algorithm for the company, or to try to create an uncrackable key, you do have ultimate responsibility for the safety of the corporate goodies. Take e-commerce, for example, its success largely depends on a website's ability to conduct secure credit card transactions and assure users that their information is safe.

Fortunately, there are number-loving folks who are delighted to do the nitty-gritty work, some theoretical cryptographers spend their entire lives on a single math problem and wouldn't be caught dead in a company boardroom. (If there isn't an expert in your company, it's time to think about getting one or shop for a hired gun.) But all executives should be aware that anything truly valuable is better off encrypted. Don't be blasé about the danger of information hijacking.

Final thought - Even with all the great tools available at your disposal to defend yourself from the would be bad guy, nothing is 100% hack proof. The key is to make it difficult enough for him to move onto the next target.

 

 

 

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