Encrypted Data

Personal data that has been transformed using cryptographic techniques so it's unreadable without the decryption key. Encryption converts plaintext data into ciphertext that appears as random characters. Strong encryption provides significant security benefits—even if encrypted data is stolen or intercepted, it remains protected as long as encryption keys are secured. Privacy laws often treat encrypted data more favorably than unencrypted data. Under GDPR, if encrypted data is breached and keys weren't compromised, notification requirements may not apply. However, encryption isn't a panacea—if keys are compromised along with data, encryption provides no protection. Organizations should use strong encryption algorithms, manage encryption keys securely, encrypt data at rest and in transit, implement key rotation, maintain key backup and recovery procedures, and understand that encryption is one security layer, not complete protection. Encrypted data remains personal data requiring appropriate handling.