Compliance glossary
Definition

Encryption in Transit

Protecting data with cryptographic controls while it moves between systems, typically using TLS 1.2 or higher.

What it means.

Encryption in transit applies cryptographic protection (TLS 1.2 or higher) to data while it moves between systems: email, file transfers, API calls, browser sessions, and VPN traffic. The FTC Safeguards Rule requires it for transmissions of customer information under 16 CFR 314.4(c)(3). TLS prevents an attacker who intercepts the network traffic from reading the data. For CPA firms, this matters most for email containing taxpayer documents, client portal uploads, and remote desktop sessions.

Why it matters for CPA firms.

Email by default is unencrypted in transit between mail servers, despite what the lock icon in your browser suggests. Sending tax returns or W-2s via standard email leaves them readable on intermediate hops. Encrypted email gateways, secure client portals, and TLS-required mail policies close this gap. The FTC has pointed to unencrypted email transmission as a Safeguards Rule violation in enforcement actions.

Relevant regulations.

  • 16 CFR 314.4(c)(3)
  • IRS Publication 4557

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