Encrypt sensitive information, planners are routinely warned by security experts. Many states even require it. But theres also confusion out there among advisors about the nuts and bolts of encryption. <\/p>\n
Planners would love to get specific guidance, says advisor and technology consultant Bill Winterberg, but he suspects that many are frustrated. As a result, he says, I would boldly guess that the majority of advisors are not using encryption properly. <\/p>\n
ENCRYPTION BASICS <\/p>\n
Encryption, which is basically taking easily readable information and making it secure by making it unreadable, is a technically complex process, involving complicated algorithms. But the everyday use of encryption online is generally pretty simple, once you understand the options. <\/p>\n
Winterberg points out that many computers, especially Apple, come equipped with encryption systems, and theres simple off-the-shelf encryption software that should be adequate for most planners, he says. When people use passwords to log on to a computer, access files or send emails, theyre generally already using encryption, though it can be difficult to know what information is encrypted and how. One way youll know that information is being sent in an encrypted form is when you see an s added to the familiar http in a web address to read https. <\/p>\n
LEVELS OF ENCRYPTION <\/p>\n
There are different types and levels of encryption. Encryption can be applied to an entire hard drive, and it can also be applied to specific files, providing multiple layers of defense. If a computer is lost or stolen, those additional layers can be helpful in protecting data. <\/p>\n
Advisors should encrypt all backup files, regardless of the form they are in, says technology and compliance consultant E.J. Yerzak, who conducts security risk assessments for advisors and broker-dealers. Email can be encrypted manually or automatically many email programs have encryption options built in, and advisors can get plug-ins, but those options have to be enabled by both parties using the program to be secure, says Yerzak. <\/p>\n
While advisors should encrypt their email, he says, email is still a notoriously insecure means of communication. For planners concerned about protecting information, encrypted portal websites for clients are an increasingly popular choice and Yerzak and Winterberg both approve of the trend. <\/p>\n
WEAK LINK <\/p>\n
<\/p>\n