Level 1: Requires that production-grade equipment and externally tested algorithms be used. The FIPS 140-2 encryption standard defines four levels, which are: What Is FIPS 140-2?įIPS 140-2 is the standard used by the United States government to validate the fact that cryptographic modules and solutions (hardware and software) produced by private sector companies meet the NIST standards and adhere to the Federal Information Security Management Act of 2002 (FISMA). Government contractors are also expected to adhere to FIPS. These standards describe document processing, encryption systems, and other IT standards to be used within non-military government agencies. The Federal Information Processing Standards (FIPS) are standards developed by the National Institute of Standards and Technology’s (NIST) Computer Security Division. However, to ensure a standardized system across all their departments and agencies, the U.S federal government has set standards for the encryption systems they use. That’s why organizations in the private sector simply choose the data encryption system that works best for them. However, there are no standards to govern data encryption systems and the algorithms they use to turn plain text into encrypted data. One of the most secure ways to protect data is to use encryption systems.
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