Should I Encrypt Sensitive Files on My Computer? (2024)

In this article:

  • How Does Encryption Work?
  • What Are the Benefits of Encrypting Sensitive Files on Your Computer?
  • How to Encrypt Files on Your Computer
  • Protect Your Identity and Credit

If you keep tax forms, legal documents, financial records or other files with sensitive information on your computer, encrypting the files may be an effective way to protect them. Even if you're dealing with files stored at your home on your desktop, encryption can keep your information safe if your computer ever becomes compromised by a virus or hacker. It can be especially important to take extra steps to protect your data if you run a small business and store clients' information, or if you use a laptop that could be lost or stolen.

How Does Encryption Work?

Encryption is the process of scrambling information so it can't be read without a key. As the owner of the data, you'll have the ability to unscramble the data by using a password, biometric information or something else.

Encryption turns a normally readable message that you want to save or send, broadly referred to as plaintext, into an encrypted message, or ciphertext. The key decrypts the ciphertext back into plaintext.

A simple example of encryption is a method you may have encountered before in a spy novel or war drama. Let's say you have a message where the plaintext is "hello." The message gets encrypted by shifting each letter in the message over one space in the alphabet, so that the encrypted message (or ciphertext) appears as "ifmmp." This is called a shift cipher, also known as Caesar's cipher.

The key needed to decrypt the message would simply be the number times and the direction in which the letters in the message were shifted. In the above example, you would just need to know or figure out that the letters in the message were shifted one time, forward in the alphabet. Someone who intercepts the message won't immediately know what it says, but a recipient with the correct key can quickly decrypt the ciphertext.

Of course, many people, and certainly today's computers, could figure out how to decrypt a message that's encrypted with a simple letter-shift cipher. Astronomically more complex methods are used to encrypt computer files and information that's sent online, but the same general concept gets applied.

What Are the Benefits of Encrypting Sensitive Files on Your Computer?

Encrypting sensitive files on your computer can help keep the information within those files private. Requiring a login password to open your computer might be a helpful step to keep a roommate from snooping, but files can be copied from your hard drive in other ways. Or, someone may be able to get remote access to your computer without you realizing it.

If your files are encrypted, people without the key won't be able to open or use the information they've stolen. Additionally, your employer may require you to encrypt files on your computer if you're working from home, or if you work with companies that share private information with you.

There are drawbacks as well. For example, once your information is encrypted, it will be nearly impossible to decrypt without the key. Which means you might lose access to your own files if you forget your password or otherwise lose access to the method used to unlock them. And, if the password you use to access your encrypted files isn't very strong, that may be a weak link even if the encryption itself is strong.

Even with all this in mind, encrypting sensitive files is often worth your effort, particularly because it's not necessarily difficult to do.

How to Encrypt Files on Your Computer

There are many ways to encrypt files on your computer, including a variety of free options. But first, you need to decide which files you want to encrypt.

If you don't keep a lot of sensitive information on your computer, you may want to use a program that allows you to encrypt individual files and folders. As a general rule of thumb, encrypt any files that have personally identifiable information, or have information or images you wouldn't want published online for anyone to see.

Another option is to encrypt your entire hard drive, or a large part of your hard drive. While this can seem like an easier solution, remember the downside—a lost password means you lose all your files. If you do decide to encrypt your entire hard drive, you may want to regularly back up the information on an unencrypted, but securely stored, external hard drive (ideally one that's not hooked up to an internet-connected device).

Popular Encryption Software

Many modern encryption options use similar levels of security to keep your files secure, but you may have a preference depending on program pricing, the computer operating system you use and your comfort level with technology.

For example, FileVault 2 is included with Macs that use OS X Lion or later and will encrypt your entire hard drive. Once enabled, you'll need to use a password to access your account. You can optionally create a recovery key that you may be able to store locally, or use your iCloud account to decrypt your files.

BitLocker is the free encryption software that can encrypt your drive and comes with the professional and enterprise versions of Windows 8 and 10. However, you may need to have certain hardware to run the program. Similar to FileVault 2, you can create a recovery key that you save locally or save to your Microsoft Account.

In addition to the included options that may come with your computer, there are popular third-party encryption programs available. Some are free, while others have free basic features and a paid version.

Protect Your Identity and Credit

Encrypting the files, folders or entire hard drive on your computer can be an important step in keeping your personal and business information secure. In turn, this can help protect you from identity theft. But it's only one of the many steps you may want to take.

For example, you'll want to use strong, unique passwords on all your online accounts, as those may be compromised by a data breach. Ideally, you'll also turn on two-factor authentication for your most important accounts.

If you think some of your accounts may already be compromised, you can run a free dark web scan. Additionally, you could sign up for an identity theft protection service, such as Experian IdentityWorks℠. The service can help you monitor your credit reports, public records and the web for your personal information and suspicious changes. And, if something does happen, you'll be supported with a U.S.-based fraud resolution team and up to $1 million in identity theft insurance.

Should I Encrypt Sensitive Files on My Computer? (2024)

FAQs

Should I Encrypt Sensitive Files on My Computer? ›

Sensitive data should be retained or handled only when required. Encryption can be an effective information protection control when it is necessary to possess confidential data.

Is it good to encrypt your files? ›

File encryption helps protect your data by encrypting it. Only someone with the right encryption key (such as a password) can decrypt it.

What are the disadvantages of encrypting files? ›

Cons: Encryption causes file size bloat to the tune of 20-30%. For light archives, encryption imparts a performance penalty for systems that need to extract the content from the preservation archive for access purposes.

What is encrypt sensitive files? ›

Encryption ensures that even if the information is intercepted by a malicious user, it is unreadable and unusable. This can prevent the loss of sensitive data. Encryption is becoming more important for organisations in order to comply with privacy and data protection regulations like GDPR, PCI-DSS, and HIPAA.

Which computer files need to be encrypted? ›

Personal information: Any files containing social security numbers, birth dates, addresses, or other personally identifiable information should be encrypted. Financial data: Bank account numbers, credit card information, and other financial records need to be secured with encryption.

Do I really need to encrypt my hard drive? ›

If a laptop is ever lost, stolen, or decommissioned inappropriately, the odds are that the data will remain safe even then, because encrypted drives are extremely difficult to access without knowing the decryption key.

Can encrypted files be hacked? ›

Can hackers see encrypted data? No, hackers cannot see encrypted data, as it is scrambled and unreadable until the encryption key (or passphrase) is used to decrypt it. However, if a hacker manages to obtain the encryption key or crack the encryption algorithm, then they can gain access to the data.

How to safely encrypt files? ›

How to encrypt files with Windows
  1. Right-click or press and hold the file or folder you want to encrypt. Select Properties.
  2. Click the Advanced… button and check the box next to Encrypt contents to secure data.
  3. Select OK to close the Advanced Attributes window and then select Apply.
  4. Click OK.
Mar 15, 2023

What is the safest encryption method? ›

AES 256-bit encryption is the strongest and most robust encryption standard that is commercially available today. While it is theoretically true that AES 256-bit encryption is harder to crack than AES 128-bit encryption, AES 128-bit encryption has never been cracked.

Does encryption slow down your computer? ›

Encryption will cause a nominal reduction in performance that should not be noticed by the average user.

Should you encrypt sensitive data? ›

The most reliable way to protect confidential or sensitive data is to avoid handling sensitive data. Sensitive data should be retained or handled only when required. Encryption can be an effective information protection control when it is necessary to possess confidential data.

Why must sensitive files be kept secure? ›

Loss or theft of sensitive data can lead to legal, compliance and business consequences. Be sure to take proper precautions to securely store that data.

How do I send securely sensitive files? ›

Methods for Secure File Sharing
  1. Method 1: Use Encrypted File Sharing Services. ...
  2. Method 2: Password-Protect Your Shared Files. ...
  3. Method 3: Use a Secure File Transfer Protocol (SFTP) ...
  4. Use Two-Factor Authentication (2FA) ...
  5. Limit Access to Shared Files. ...
  6. Educate Employees and Users on Best Practices.

Should I encrypt all my files? ›

Generally, any file containing sensitive, personal, or confidential information should be a priority for encryption. Protecting your digital assets through encryption is a crucial step in maintaining your privacy and security in an increasingly interconnected world.

What is the main reason to encrypt a file? ›

Encryption protects the contents of a file from being read by anyone who doesn't have the encryption key.

Why is Windows encrypting my files? ›

Files are most vulnerable to cyberattacks once they are sent out, and file encryption helps keep your personal information safe in transit.

Is it safe to encrypt your data? ›

Encryption isn't fool proof, there are different levels or strengths of encryption but if used correctly it should make it very difficult for anyone to access your confidential data but remember: You need to take care of your encryption keys (passwords) so that you can access the encrypted data yourself in the future!

What happens when a file is encrypted? ›

File encryption transforms data into code that only intended recipients can decipher, preventing unauthorized users from being able to access, view, and understand sensitive information.

Is it better to always encrypt data? ›

As a result, Always Encrypted enables customers to confidently store their sensitive data in the cloud, and to reduce the likelihood of data theft by malicious insiders.

Is it necessary to encrypt? ›

Encryption is a critical cybersecurity tool

It's one of the most effective tools available to keep your important information out of the hands of malicious individuals. If attackers manage to access your system data, these methods ensure they can't see, read, or do much with the information.

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