What is PGP Encryption?
In the information age, the world still runs on files, and whether they are at rest or in motion, encryption is essential to protecting those files. For encrypting those files, we rely on PGP (Pretty Good Privacy), a popular and proven encryption and decryption. PGP is an open-source, 2,048-bit encryption standard trusted by millions of users since it was first introduced in 1991.
How PGP Works
It helps to think of encryption as a tough mathematical puzzle involving so many numbers and complex equations that it would take a modern computer millions of years to solve—unless you have a special key. PGP encryption uses a combination of symmetric-key and public-key cryptography to protect data. That means each user has a pair of keys: a public key that’s shared with others and a private key that is kept secret.
When someone wants to send an encrypted message, they use the recipient’s public key to encrypt the message. Then, even if the message is intercepted by a cybercriminal or sent to the wrong person by mistake, only the person with the corresponding private key can decrypt and read the message or make sense of the data. That is important, in a time where most communications are digital, and when so much information is sensitive.
PGP, OpenPGP, and GPG
A couple of points of clarification needs to be made here. You may see the term OpenPGP used interchangeably with PGP. Don’t be confused. The only real difference is that PGP is trademarked, while OpenPGP is the open standard (defined by RFC 4880) PGP implements. When it comes to PGP management, Diplomat MFT automates the process.
Also, there is a PGP alternative called GPG–short for GNU Privacy Guard–that is an open source implementation of the PGP protocol. GPG offers a command line interface to perform PGP encryption, decryption, signing, verifying, and key management operations. GPG is compatible with the OpenPGP standard.
Importance of Encryption in Data Security
Because organizations of all sizes regularly transfer data that is of high importance—things like financial transactions, medical files, human resources records, trade secrets, legal documents, and more—encryption is fundamental to keeping that data safe. And because most countries have many laws (like HIPAA, GDPR, PIPEDA, DORA, PIPL, APPI, and many more) requiring information security and data privacy, using encryption like PGP is the first, best step to ensure that your information remains confidential.
It’s worth noting that PGP encryption has never been cracked, and so it makes sense that it has been widely adopted for protecting everything from personal emails to critical business documents. That is why, when you need to transmit sensitive data, encrypting it with PGP ensures that the information remains confidential throughout the transfer process. PGP encrypts the data on the sender’s end, and only the recipient can decrypt and access it, preventing unauthorized access.
PGP Encryption for Secure Data Transfer
Automated PGP encryption and decryption is the difference between managed file transfer and secure managed file transfer. Without it, security depends on an individual making a decision to go through the steps needed to encrypt a file—and doing it correctly. That is why, when confidentiality is required for a data transfer, PGP encryption guarantees that only authorized individuals can access the information, guarding against an accidental data breach and preventing unauthorized or malicious parties from eavesdropping.
Encryption is also vital to ensuring the integrity of your files because PGP not only encrypts your data, but it adds a second layer of protection by assigning a digital signature to verify the authenticity of the files, ensuring that the information remains unaltered during transfer.
BENEFITS OF PGP ENCRYPTION
When combined with process automation and secure transport protocols like SFTP (secure file transfer protocol) and FTPS (file transfer protocol secure), PGP delivers several benefits to the secure managed file transfer process.
PGP encryption ensures that the content of files is kept confidential. Before files are transmitted, they are encrypted with a unique encryption key. This process renders the files unreadable to anyone who doesn’t possess the corresponding decryption key, even if the files are intercepted during transfer.
Protection Against Interception:
One of the most significant benefits of PGP encryption is its capacity to render files useless to unauthorized interceptors. If files are intercepted, the encryption ensures that their content remains secure and unreadable, as the decryption key is necessary to unlock them.
End-to-End Security:
PGP encryption applies a principle of end-to-end encryption, meaning that data is encrypted at the sender’s end and only decrypted at the recipient’s end. This method eliminates the risk of data being accessed or tampered with at any point along the transfer route, ensuring a secure, confidential, and seamless transfer process.
Authentication:
PGP provides a means of authenticating the source of the files. Recipients can verify that the files they receive are from a legitimate source and have not been tampered with, ensuring the authenticity and trustworthiness of the data.
Regulatory Compliance:
In industries subject to specific data protection regulations (such as healthcare with HIPAA or European organizations under GDPR), PGP encryption is a key tool for maintaining compliance. It ensures that data is protected and can help organizations meet the stringent requirements of these regulations.
For any organization that regularly shares sensitive information, and especially for those operating in industries like healthcare, financial services, legal services, pharmaceuticals and bio manufacturing, retail, government, and high technology, PGP can be instrumental in ensuring data security. In fact, many larger organizations require the use of PGP or similar standards as a precondition for engaging in file transfers.
By using secure managed file transfer solutions that include PGP automation, organizations can ensure their data protection measures, regulatory compliance programs, and industry security standards are met, building trust and confidence in their data transfer processes.
PGP and Managed File Transfer
What is Managed File Transfer?
Managed File Transfer (MFT) is a software solution for automating and optimizing the secure exchange of data between different organizations, entities, or even departments within the same organization. During a single day, an organization may need to send and receive files thousands of times. Some of those files may be large, time sensitive, or contain information that governments or trading partners require to be protected. Without a way to automate the exchange of so many files, delays and mistakes are inevitable, leading to fines, government investigations, and damage to brand reputation. Humans would also get overwhelmed as the volume and frequency of file transfers increases. MFT software solves that problem by serving as a centralized platform for managing the complete file transfer lifecycle, from initiation to completion.
A good MFT solution takes every aspect of file sharing and management into consideration, with features that simplify what would otherwise be a difficult and time-consuming task. A good MFT solution makes a hard job simple enough that regular transfers, once established, happen without human intervention. And every step of the process is simplified to ensure data security is achieved, data integrity is maintained, and that regulatory and partner requirements are met. A good MFT solution also gives you peace of mind while enhancing operational efficiency knowing file transfers will be on-time and reliable.
Here are a few key characteristics and functions that a good managed file transfer solution will have to make that happen:
- Process Automation: MFT software automates many aspects of the file transfer process, reducing the need for manual intervention. Automation minimizes the risk of errors and streamlines processes, allowing organizations to execute transfers correctly, securely, and efficiently.
- Centralized Management: MFT software centralizes the management of file transfers, offering a unified platform for planning, executing, and monitoring them. Using MFT software simplifies file transfer administration and ensures consistent security practices.
- Monitoring and Tracking: MFT software provides real-time monitoring and tracking capabilities, allowing organizations to gain insights into the status of transfers, identify potential issues, and maintain a comprehensive audit trail. Capturing data associated with file transfers is essential for accountability, reporting, and compliance.
- Integral Security: Security is a fundamental aspect of MFT. A secure MFT solution employs several built-in security features, such as encryption, authentication, access controls, recipient verification, and delivery confirmation. PGP encryption and the SFTP transport protocol play central roles in MFT security by safeguarding files during transfer and at rest.
- Compliance Support: Good MFT solutions are designed to help organizations meet regulatory compliance requirements, particularly in industries that deal with sensitive or regulated data, such as healthcare (HIPAA) or finance (PCI DSS). File encryption is a key to maintaining security and privacy compliance, and process data capture for required audits is essential to proving compliance.
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Use Case For PGP Encryption With Managed File Transfer (MFT)
Managed file transfer (MFT) is an excellent way to share the files that need to be exchanged with other parties (internally and externally), but without security-by-design, an MFT platform might put your data at greater risk.
MFT solutions that automate the use of PGP, such as Diplomat MFT, to manage the encryption and decryption of data, streamline the process of keeping data secure and confidential by handling the difficult steps automatically, virtually eliminate the probability that someone will forget to encrypt a file, send a file to wrong recipient, or make other costly mistakes.
Let’s take a closer look at how an MFT solution uses PGP encryption to protect files containing sensitive information when sharing those files with other parties.
The PGP + MFT Connection
PGP and MFT are two powerful tools that, when combined, significantly strengthen the entire process of managing, securing, and transmitting files. Together, MFT automations and strong PGP encryption enhance the security and integrity of file transfers, particularly in scenarios where data privacy, confidentiality, and regulatory compliance are paramount. PGP encryption ensures data is secure in motion during the file transfer process, and also when data is at rest once it is received and archived.
Compliance and Regulatory Considerations
Because of the abundant laws requiring data privacy and security, regulatory compliance is a top priority for many organizations. Protecting and managing the transfer of sensitive data, such as personally identifiable information (PII), protected health information (PHI), intellectual property (IP), financial transactions and account data, and more, compliance is relevant for many data transfers.
Furthermore, there are several industry and corporate standards, like the Payment Card Industry Digital Security Standard (PCI DSS) and JPMorgan Managed File Transfer Services, that require data encryption. Secure MFT solutions that support PGP address these considerations in three important ways:
- Data Encryption: In the event of a data breach—whether accidental or through a malicious act—files that are encrypted are typically considered secure and exempted from reporting.
- Data Audits: Following a data breach, forensic audits can prove that regulations were followed. Without audit ability, organizations may be found in violation of the law.
- Data Integrity: Regulations often demand that data remains unaltered during transfer. PGP’s digital signatures provide assurance that files have not been tampered with.
The connection between PGP encryption and MFT automations forms a robust framework that bolsters data security, integrity, and compliance. This combination ensures that data remains confidential, secure, and compliant with industry-specific regulations, fostering trust, accountability, and transparency in the data transfer processes.
Your Plan of Action to ensure File Transfer Security
Using Diplomat MFT as a solution for file transfer security, HIPAA/HITECH, GDPR and PCI/DSS requirements.
Advantages and Disadvantages of Using PGP
The clear benefit of PGP encryption in the managed file transfer process is found in file security. When a file is encrypted using PGP, the data contained in that file is safe, even if the file itself is intercepted. That is a big advantage when it comes to security and privacy compliance programs. Often, if a file can be shown through process audit to have been encrypted, it is considered safe even if a threat actor has gained access to it, or it was exposed accidentally through misdelivery or other operator error.
And so, while PGP encryption offers significant security benefits to a data security and regulatory compliance program, implementation of PGP can pose challenges when not addressed in a strategic manner.
PGP management is a complex process when handled manually, which means that asking staff to tackle PGP encryption and decryption manually can result in errors or avoidance, putting data at risk. And some PGP management tools can be expensive, providing a budgetary disincentive.
Here are a few of the features and processes of PGP that can be difficult without the proper tools and approach:
- Encryption Key Generation: Generating strong encryption keys is essential. Organizations must use reliable methods to create keys that are resistant to attacks and capable of protecting sensitive data. Inadequate key generation can undermine the entire security framework.
- Encryption Key Distribution: Securely distributing encryption keys to authorized users or recipients is a challenge. Unauthorized access to keys could lead to data breaches. Organizations must establish robust mechanisms for key distribution while keeping them confidential.
- Encryption Key Rotation: Over time, keys may become vulnerable due to advancements in computing power or evolving encryption standards. Regular key rotation is necessary to maintain data security. However, rotation introduces complexities in ensuring that data encrypted with older keys remains accessible.
- Encryption Key Revocation: In situations where a key is compromised or a user’s access rights change, revocation mechanisms must be in place to immediately nullify a key’s effectiveness. Handling key revocation effectively is vital to prevent unauthorized access.
PGP Automation and AI
The good news is that automation and artificial intelligence (AI) have made significant contributions to the field of encryption and go a long way toward making the use of PGP simple and more effective, while enhancing various aspects of the encryption process. Many of these innovations can be applied to the use of PGP to make it easier to tackle the complexities of data encryption, decryption, and encryption key management. A few ways AI and automation are complementing PGP encryption include:
- Key Management: Applied to PGP key management, automation and AI speed the process of generating, distributing, and rotating encryption keys while ensuring that keys are consistently and securely managed, reducing the risk of key-related vulnerabilities.
- Streamlined Processes: Automation and AI improve the efficiency of PGP encryption by enabling the fast and consistent encryption of data, reducing the burden on human operators and minimizing the potential for human error, translating to more cost-effective and reliable data security.
Future of PGP Encryption
One question we often hear concerns the future of PGP encryption as other technologies like artificial intelligence and processing power grow more capable, and as research and development bring quantum computing closer to viability. Some speculate that, because encryption is, at its core, a highly complex math puzzle, innovations that make it easier to run new and faster programs to solve the puzzle mean PGP and other types of encryption could soon be obsolete.
It is unlikely that improvements to artificial intelligence and increases in traditional computing power will put PGP at risk of obsolescence. It is estimated that today’s computers would take 300 trillion years to crack 2,048-bit encryption like PGP. A quantum computer, on the other hand, could defeat traditional encryption in a matter of minutes. That news should make everyone uncomfortable. And while it is widely believed the advent of a viable quantum computer is at least five (and maybe twenty) years away, there are already many experts working to develop new algorithms and methods of cryptography—known as post-quantum cryptography—that would be resistant to the power of quantum computers.
Post-quantum cryptography is an important area of research. Because of the way data is processed in quantum computing, traditional cryptography will not work. In anticipation of the quantum computing era, there are nations and organizations stealing encrypted data and storing it for a day when it will be easily decrypted and read. This practice is known as “harvest now, decrypt later” or harvest attacks, and they typically target state secrets, military industrial intellectual property, and other information with a long shelf life. But the threat is not exclusive to governments and large industrial concerns.
For that reason, it is important to develop post-quantum cryptography as quickly as possible so that data can be protected against the threat before it becomes a reality. Lattice-based cryptography and homomorphic encryption are among the methods being explored to harden PGP against quantum attacks and provide a more robust defense against increasingly sophisticated adversaries.
Coviant Software is following these trends closely and will adopt proven post-quantum cryptography once it has been developed and approved by a recognized standards authority such as the National Institute of Standards and Technology (NIST).
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