Encryption

Definition

Encryption is the process of converting personal data into an unreadable format so that only authorized parties with the appropriate cryptographic key can access it.

In the context of the Digital Personal Data Protection Act, 2023 (DPDP Act), encryption is a security measure used to protect personal data from unauthorized access during storage, transmission, or processing. It converts readable information (plaintext) into an unreadable format (ciphertext) using cryptographic algorithms and keys. Only users or systems possessing the appropriate decryption key can restore the data to its original form. Encryption helps preserve the confidentiality of personal data throughout its lifecycle.

Organizations process personal data across websites, mobile applications, cloud platforms, databases, APIs, employee devices, and backup systems. Encryption helps reduce the risk of unauthorized disclosure if personal data is intercepted, accessed without authorization, or exposed through lost devices or compromised systems. It is commonly implemented alongside other security measures such as access controls, identity and access management, key management, logging, and continuous monitoring to strengthen the protection of personal data.

The DPDP Act does not mandate encryption as a specific technical requirement. Instead, it requires Data Fiduciaries to implement reasonable security safeguards to protect personal data from Personal Data Breaches. Depending on the sensitivity of the personal data processed and the risks involved, encryption may form an important component of those safeguards. It also aligns with widely accepted security standards and good practices for protecting sensitive information and reducing the impact of security incidents.

In practice, gaps emerge when:

Personal data is stored or transmitted without encryption despite the associated risks.
Encryption keys are inadequately protected or managed.
Different business systems apply inconsistent encryption standards.
Backup copies containing personal data remain unencrypted.
Encryption is implemented but not regularly reviewed as systems and risks evolve.

Organizations strengthen data protection by implementing encryption across storage and communication channels, adopting secure key management practices, periodically reviewing cryptographic controls, and integrating encryption into broader privacy and security governance. Within Privy, capabilities such as automated data discovery, data classification, data mapping, governance workflows, and audit-ready reporting help organizations identify where personal data resides and flows, enabling appropriate security measures—including encryption—to be applied based on risk.

Here’s everything you need to know about this term and how it fits into your compliance program.

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Encryption is the process of converting readable data into an unreadable format using cryptographic algorithms so that only authorized parties with the correct key can access it.

Encryption helps protect personal data from unauthorized access during storage and transmission, reducing the risk of disclosure if systems or devices are compromised.

The DPDP Act does not specifically mandate encryption. However, organizations are required to implement reasonable security safeguards, and encryption is widely recognized as an effective measure for protecting personal data.

Encryption at rest protects personal data stored in databases, devices, or cloud storage, while encryption in transit protects personal data as it moves between systems, applications, or networks.

Privy helps organizations discover, classify, and map personal data across enterprise environments, enabling them to identify where encryption and other security safeguards should be implemented to support DPDP compliance.

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