7 Encryption Benefits That Safeguard Growing Businesses

by Jason Harlam | June 23, 2025 | Blog

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Small and mid-sized businesses (SMBs) are in the crosshairs of cybercriminals like never before.

What used to be a problem for global giants is now a daily risk for companies with modest IT budgets and limited cybersecurity resources. Yet many SMBs still operate under the dangerous illusion that “we’re too small to be targeted.

That false sense of security comes at a high price. According to Ponemon Institute, businesses can save an average of $1.4 million per attack by using robust encryption. A single breach could compromise customer trust, trigger regulatory penalties, and grind your operations to a halt.

“Every click, every email, every transaction: encryption is what makes them safe,” says Jason Harlam, Business Development Manager at Technology Advisory Group.

Let’s break down exactly why it’s a wise, scalable investment every business leader should consider.

 

Secure Your Systems with TAG’s Proven Cybersecurity Solutions Take proactive steps to protect your business with our expert security strategies. Book a Consultation

 

What is Data Encryption?

Data encryption is the process of converting readable information into a coded format, ensuring that only authorized parties can access it. There are two primary types:

• Symmetric Encryption: Uses a single key for both encryption and decryption.
• Asymmetric Encryption: Utilizes a pair of keys, a public key for encryption and a private key for decryption.

Implementing encryption protects data both at rest (when it is stored) and in transit (when it is being transmitted), safeguarding it from unauthorized access.

 

Key Benefits of Implementing Encryption

Encryption is a technical tool and a strategic investment in your business’s future. When properly implemented, encryption protects your data, strengthens your reputation, and positions your business for sustainable growth. Here are seven powerful reasons to make encryption a foundational part of your IT strategy:

 

1. Fortifies Data Security Across Devices and Networks

Encryption transforms sensitive data into unreadable code that only authorized users can decipher. Whether data is stored on servers, transmitted across networks, or sitting idle on a mobile device, encryption ensures it remains inaccessible to prying eyes.

• Makes data unreadable, even if devices are lost or stolen
• Shields sensitive information such as financials, client records, and IP
• Works seamlessly with antivirus, firewall, and access control tools for layered security

Learn more about how encryption works.

 

2. Helps You Meet Regulatory Compliance Requirements

Today’s compliance frameworks, including HIPAA, PCI DSS, and CCPA, require data protection at rest and in transit. Encryption helps your business comply with the law and avoid costly fines or reputational damage.

• Enables secure handling of protected health information (PHI) and payment data
• Supports audit readiness and proof of compliance
• Reduces liability in the event of a breach when encrypted data is compromised

 

3. Builds Customer Trust and Confidence

When customers know their personal data is protected, they’re more likely to engage with your brand and remain loyal over time. Encryption shows you take their privacy seriously, something your competitors may neglect.

• Communicates a strong commitment to data privacy
• Enhances reputation in industries where trust is paramount (e.g., legal, financial, healthcare)
• Encourages repeat business and long-term client relationships

Most small to medium-sized businesses (SMBs) focus on customer experience, but security is also an integral part of it.

 

4. Creates a Competitive Advantage in Security-Conscious Markets

Buyers today are savvier than ever. They evaluate vendors based not only on services and price but also on how well they secure data. Encryption sets you apart as a forward-thinking partner.

• Helps you win bids and contracts that require cybersecurity standards
• Demonstrates operational maturity and IT leadership
• Makes your business more attractive to enterprise customers and procurement teams

 

5. Reduces the Blast Radius of Data Breaches

No defense is perfect, but encryption limits the damage if a breach occurs. Encrypted data is essentially useless to hackers without the decryption key, offering a powerful last line of defense.

• Prevents stolen data from being exploited, resold, or leaked
• Protects against insider threats and ransomware extortion
• Lowers the cost of response and recovery during a cyber incident

 

6. Supports Secure Remote and Hybrid Work

The rise of distributed teams and Bring Your Own Device (BYOD) policies increases the risk of data exposure. Encryption helps secure communication and file sharing between remote employees, contractors, and third-party vendors.

• Protects company data on personal and unmanaged devices
• Enables secure VPN and email communications
• Encrypts files stored in the cloud or accessed from home networks

30% of IT leaders identify information security as the biggest hurdle to adopting BYOD.

 

7. Boosts Business Continuity and Insurance Coverage

Cyber insurers are increasingly requiring encryption as a condition for coverage and may offer premium discounts to companies with strong data protection practices. Encryption also reduces downtime by helping you recover clean data faster.

• Satisfies underwriting requirements for cyber liability policies
• Minimizes downtime during recovery and restores trust faster
• Signals resilience to clients, investors, and regulators

Encryption is no longer a nice-to-have; it’s an essential pillar of modern business resilience. In every industry, from healthcare to professional services, the benefits of encrypting data far outweigh the costs. And with today’s solutions, implementation is easier and more scalable than ever before.

 

Implementing Encryption: 5 Best Practices for SMBs

Encryption can only protect your data if it’s implemented thoughtfully. Too often, businesses rush into encryption without a clear strategy, resulting in gaps, confusion, and compliance risks. Here are five essential best practices to help your organization deploy encryption effectively and sustainably:

 

1. Identify and Classify Sensitive Data First

Before encrypting anything, you need to know what you’re protecting—and why. Not all data carries the same level of risk. Begin by conducting a comprehensive audit of your digital assets to categorize data according to its sensitivity, regulatory requirements, and potential business implications.

• Prioritize personal customer data, financial records, intellectual property, and proprietary documents
• Use data classification frameworks (e.g., Public, Internal, Confidential, Restricted)
• Document where each type of data resides—servers, endpoints, cloud apps, mobile devices

 

2. Choose the Right Encryption Standards and Tools

Encryption isn’t one-size-fits-all. Different tools and protocols are designed for various use cases, including emails, databases, cloud storage, VPNs, and file sharing. The strength and efficiency of your encryption depend on selecting appropriate standards and keeping them up to date.

• Use AES-256 for robust symmetric encryption and RSA-2048 or higher for public key encryption
• Prioritize tools that are FIPS 140-2 or NIST-approved for compliance-sensitive environments
• Avoid outdated algorithms like DES or MD5, which can be cracked with modern computing power

More articles you might like: What is Data Breach Insurance and How Do You Know When You Need it Cyber Insurance Costs: What You Need to Know Cloud Security Threats: How to Identify and Defend Against them

 

3. Implement Strong Encryption Key Management

Encryption is only as secure as the keys that unlock it. Poor key management is one of the most common weaknesses in an encryption strategy. Without proper control, keys can be lost, stolen, or misused, rendering your protection worthless.

• Store keys separately from encrypted data (never in the same environment)
• Use Hardware Security Modules (HSMs) or Key Management Services (KMS) for enterprise-grade protection
• Rotate keys regularly and retire old or compromised ones immediately

 

4. Train Employees and Build Awareness

Your encryption strategy is only effective if your employees use it properly. Staff may unknowingly bypass security protocols if they find them confusing or inconvenient. Build a security culture where encryption is second nature, not an afterthought.

• Provide ongoing training on encrypted communications, file handling, and mobile security
• Run simulated phishing and data handling tests to reinforce best practices
• Emphasize why encryption matters, especially when dealing with customer or financial data

Employees can be the weakest link or the strongest firewall. Training makes the difference.

 

5. Monitor, Audit, and Refine Regularly

Encryption isn’t a “set it and forget it” solution. As your business grows, your systems evolve, and your encryption needs will shift. Regularly review and refine your approach to keep it aligned with your risk landscape and compliance requirements.

• Schedule routine audits of encrypted systems, endpoints, and cloud apps
• Monitor for unusual access patterns or failed decryption attempts
• Stay current on emerging encryption trends and threat vectors

 

Comparing Encryption Types for SMB Use Cases

Encryption Type	Best For	Key Benefits	Potential Drawbacks
Symmetric Encryption	Internal data storage, backups, large file transfers	Fast performance, simple implementation	Key distribution can be risky; one key used for all actions
Asymmetric Encryption	Email security, digital signatures, external communications	Strong security with public/private key pairing	Slower, more resource-intensive
Full Disk Encryption	Protecting endpoints like laptops, phones, and USB drives	Prevents data loss in case of device theft	May slow device boot time slightly
File-Level Encryption	Sensitive files on shared drives or cloud platforms	Granular control over individual files	Requires consistent application by users
End-to-End Encryption	Messaging, cloud file sharing, remote team collaboration	Keeps data secure throughout transmission path	May require compatible apps for all users

 

Secure Your Data and Your Reputation with Technology Advisory Group

In a time when cyber threats are evolving faster than ever, encryption is no longer a luxury: it’s your frontline defense. From securing sensitive files to complying with industry regulations and earning customer trust, encryption delivers measurable value to small and medium-sized businesses (SMBs) across every sector.

It’s not just about protection: it’s about preparation. Proactively encrypting your data helps you avoid the chaos of a breach, maintain business continuity, and build a brand that clients can trust with confidence.

Discover Trusted Cybersecurity Services Near You: Rhode Island Providence Worcester

At Technology Advisory Group, we don’t just check boxes: we architect encryption strategies that fit your business operations, compliance requirements, and risk profile. Whether you’re starting from scratch or refining an existing approach, our team of cybersecurity professionals will guide you with practical expertise and proven solutions.

Ready to take control of your cybersecurity future? Contact us today to schedule your free consultation and discover how our tailored encryption services can protect what matters most: your business.