Encryption at Rest

Encryption at rest is a security measure that protects data when it is stored rather than when it is being transmitted or actively processed. It uses cryptographic algorithms to convert readable data into ciphertext, ensuring that stored information remains inaccessible to unauthorized users without the appropriate decryption keys. Encryption at rest is commonly applied to databases, file systems, cloud storage, virtual machines, backup media, portable devices, and archival storage to reduce the risk of unauthorized access if storage systems are compromised.

As organizations increasingly store sensitive business information and personal data across hybrid and cloud environments, encryption at rest has become a foundational cybersecurity control. Even if an attacker gains physical or logical access to storage systems, encrypted data cannot be readily read without the corresponding encryption keys. However, encryption should be complemented by robust key management, identity and access management, logging, monitoring, and backup security to provide comprehensive protection against data breaches and insider threats.

The Digital Personal Data Protection Act, 2023 (DPDP Act) does not mandate encryption at rest as a specific technical control. Instead, it requires Data Fiduciaries to implement reasonable security safeguards to protect personal data from personal data breaches. Depending on the nature of the personal data processed, the associated risks, and the organization's technology environment, encryption at rest may form an important part of those safeguards. It also aligns with widely accepted security frameworks such as ISO/IEC 27001 and the NIST Cybersecurity Framework, where encryption is recognized as a key measure for protecting sensitive information.

In practice, gaps emerge when:

• Databases storing personal data are encrypted, but backup copies remain unencrypted.
• Encryption keys are stored alongside encrypted data without adequate protection.
• Legacy applications cannot support modern encryption standards.
• Cloud storage encryption is enabled but key management responsibilities are unclear.
• Organizations encrypt production systems but overlook development and testing environments containing personal data.

Organizations strengthen data protection by implementing encryption across storage environments, adopting centralized key management, monitoring encryption status, regularly rotating encryption keys, and integrating encryption into broader security governance. Within Privy, capabilities such as automated data discovery, data classification, data mapping, governance workflows, and compliance reporting help organizations identify where personal data resides so that appropriate security controls—including encryption at rest—can be implemented based on risk.