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Which of the following statements is TRUE about data encryption as a method of protecting data?
Correct Answer: D
Explanation/Reference: Explanation: The main challenge brought by improved security is that introducing encryption software also introduces management complexity, and in particular this means dealing with encryption keys. An encryption key applies a set of complex algorithms to data and translates it into streams of seemingly random alphanumeric characters. There are two main types - private key (or symmetric) encryption and public key (or asymmetric) encryption. In symmetric encryption, all users have access to one private key, which is used to encrypt and decrypt data held in storage media such as backup tapes and disk drives. Although considered generally secure, the downside is that there is only one key, which has to be shared with others to perform its function. Asymmetric encryption comprises two elements: a public key to encrypt data and a private key to decrypt data. The public key is used by the owner to encrypt information and can be given to third parties running a compatible application to enable them to send encrypted messages back. Managing encryption keys effectively is vital. Unless the creation, secure storage, handling and deletion of encryption keys is carefully monitored, unauthorized parties can gain access to them and render them worthless. And if a key is lost, the data it protects becomes impossible to retrieve. Incorrect Answers: A: Data encryption should not 'sometimes' be used for password files; it should always be used. B: It is not true that data encryption is usually easily administered; it is complicated. C: It is not true that data encryption makes few demands on system resources; encrypting data requires significant processing power. References: http://www.computerweekly.com/feature/Encryption-key-management-is-vital-to-securing-enterprise-data- storage