How to secure data at rest, in use, and in motion

Data doesn't just sit on dusty drives in locked server rooms anymore. It lives and moves across endpoints, networks, cloud platforms, and back again. This data lifecycle comes with threats that range from misconfigured cloud shares and excessive user permissions to insiders accessing sensitive files and threat actors quietly observing data in motion. Stopping these threats one at a time isn't enough. What organizations need is a holistic approach to data security. But first, let's understand the three states that reflect where data lives and how it's used:

• Data at rest = stored data, whether in a database, file share, object store, or on-premises disk.
• Data in motion = data moving across networks and between systems (for example, a file being transferred, a backup moving to the cloud, or a stream between services).
• Data in use = data being processed, queried, edited, or accessed by applications and users, such as employees, partners, and customers. This is when data is actively processed rather than simply stored or transferred.

Focusing on just one or two of these states leaves gaps. For example, you might encrypt everything at rest, but neglect permissions on a file share or fail to monitor unusual sharing links. And suddenly, data in use or in motion becomes exposed.

DSPM: A unified approach to data security

Data Security Posture Management (DSPM) is a unified strategy designed to discover where sensitive data resides, understand who has access (and whether they should), monitor how it's being used or moved, and alert on suspicious activity. It provides visibility and control across all three states: at rest, in motion, and in use.

The Netwrix 1Secure DSPM platform enables organizations to unify their data security strategy by automatically discovering and classifying shadow and sensitive data, assessing risks, monitoring permissions, and alerting on critical changes. Covering environments like Microsoft 365, SharePoint, Teams, OneDrive, Active Directory, Entra ID, file servers, and SQL Server, it provides visibility and risk context to help protect data at rest, in use, and in motion.

Netwrix 1Secure DSPM also integrates identity and data security, providing insight into who has access to what data and why. In this way, organizations can better detect risks, enforce least privilege access, and maintain regulatory compliance.

Understanding the states of data: rest, motion, and use

To protect data effectively, the first step is to understand how data lives and moves through your digital ecosystem and how it's stored, shared, and accessed in different ways. Each of these states, at rest, in motion, and in use, face unique risks and requires specific protection measures.

Why each state needs its own protection

No single security control can cover all three states equally. Encryption protects data at rest, but once it's opened (in use) or transferred (in motion), other controls must step in, such as secure transmission protocols, access management, and behavioral monitoring. Holistic data protection means applying the right defense at the right moment.

By recognizing how data shifts between these states and tailoring your security approach accordingly, you can build stronger, more resilient protection against threats.

Why data at rest is a prime target for attackers

Data at rest, such as data stored on a server, in a database, or in cloud storage, remains one of the most attractive targets for attackers. It is static, concentrated, and typically contains an organization's most valuable information, from customer records and financial details to intellectual property and employee credentials.

Data at rest usually stays in one place for a long period. Once an attacker gains access, they can quietly copy and exfiltrate large volumes of information without raising immediate alarms. That makes it a prime target for cybercriminals who trade stolen data on the dark web or use it to launch further attacks.

Common risks to data at rest

Data at rest faces the following risks that can expose sensitive information if not properly addressed:

• Physical theft: Lost or stolen laptops, backup drives, and even improperly discarded hard disks can expose sensitive information if they're not encrypted.
• Unauthorized access: Weak passwords, misconfigured permissions, and open file shares grant intruders more visibility than intended.
• Insider threats: Sometimes, the danger comes from within—employees or contractors who intentionally or accidentally access and misuse stored data.
• Cloud misconfigurations: In the rush to move data to the cloud, open storage buckets and unprotected databases are among the most common and costly mistakes.
• Ransomware: Ransomware attacks target stored data by encrypting entire systems or drives, locking organizations out until a ransom is paid.
• Data breach: Data at rest is liable to a data breach, where sensitive customer and business information is leaked by an external attacker or a malicious insider.

Real-world examples

The following examples highlight real-world breaches involving data at rest. They show that protecting data at rest isn't just about storage security, but also about access control, encryption, and continuous monitoring. A single misstep, human or technical, can open the door to massive data loss and reputational damage.

Data at rest encryption: methods, algorithms, and use cases

Password protection, data encryption, physical controls, and monitoring are some ways to protect data at rest. Of these, encryption is perhaps the most powerful. It ensures that even if unauthorized users gain physical or digital access to stored files, they can't read the data without the decryption keys. In essence, encryption turns sensitive information into an indecipherable format, a digital lock that can only be opened with the right key.

Symmetric vs. asymmetric encryption

Following are the two main data at rest encryption standards:

• Symmetric encryption uses the same key to encrypt and decrypt. It's fast and efficient, making it ideal for encrypting large volumes of data, such as databases and storage drives. The main challenge lies in securely managing and distributing that single key.
• Asymmetric encryption uses a pair of keys: a public key for encryption and a private key for decryption. This model enhances security for key exchange and is used in combination with symmetric encryption to balance performance and protection.

In practice, these methods often work together. For example, symmetric encryption is used to encrypt the data while asymmetric encryption secures the exchange of keys.

Common encryption methods

To protect data, organizations rely on multiple data at rest encryption methods:

• Transparent Data Encryption (TDE): Commonly used in databases like Microsoft SQL Server and Oracle. TDE automatically encrypts database files on disk so that copied files are unreadable without access to the encryption keys.
• Full disk encryption (FDE): Tools like BitLocker (Windows) and FileVault (macOS) encrypt the entire storage drive. This protects laptops, desktops, and servers from data theft in case of loss or hardware compromise.
• File- and folder-level encryption: Useful when only specific files or directories need protection, especially in shared environments.

Key algorithms

Among encryption algorithms, a few stand out for their strength, reliability, and ability to balance security with performance:

• AES-256 (Advanced Encryption Standard): The industry standard for symmetric encryption. It is widely adopted across government, finance, and healthcare sectors for encrypting data at rest and in transit due to its speed and robust security.
• RSA (Rivest-Shamir-Adleman): An asymmetric encryption algorithm used for secure key exchange, digital signatures, and certificate-based authentication.
• ECC (Elliptic Curve Cryptography): A modern asymmetric approach that provides equivalent security to RSA with much smaller key sizes, making it faster and more efficient.

Real-world applications across industries

Organizations across many industries use encryption to protect sensitive data and meet regulatory requirements:

• Finance: Banks use AES-256 and RSA to secure stored customer records, cardholder data, transaction logs, and backups, ensuring compliance with PCI DSS.
• Healthcare: Hospitals encrypt patient data under HIPAA requirements. They often use TDE to safeguard medical databases containing protected health information (PHI).
• Education andgovernment: Full-disk encryption tools like BitLocker and FileVault protect sensitive documents on laptops and workstations.
• Cloudservices: Cloud providers implement both symmetric and asymmetric encryption layers to secure stored data and manage encryption keys safely.

Closing encryption gaps with DSPM

While technologies like AES-256, RSA, BitLocker, and TDE secure the data itself, they are only effective if applied consistently across all sensitive and shadow data. Netwrix 1Secure DSPM supports encryption strategies by continuously discovering where sensitive data at rest resides and whether it's properly protected. By identifying unencrypted or misclassified data and alerting on risky conditions, DSPM enables organizations to close encryption gaps.

Choosing the right encryption strategy for data at rest

Not all data and storage environments are created equal. Choosing the right encryption strategy for data at rest is about finding an approach that fits your organization's data types, operational needs, and compliance requirements.

Data at rest encryption best practices

To develop an effective encryption plan, you must first understand what you need to protect. Identify where sensitive and regulated data is stored. Once you have visibility, follow these data at rest encryption best practices:

• Encrypt by default: Make encryption the norm for all storage locations, not just high-risk areas.
• Classify and prioritize data: Label data based on its sensitivity and regulatory requirements. Apply stronger encryption to highly sensitive information.
• Automate wherever possible: Manual encryption management leads to mistakes. Automation tools and DSPM platforms provide consistency.
• Enforce least privilege: Limit who can decrypt, access, and manage encrypted data to reduce insider risks.

Evaluating encryption standards and compliance needs

Different industries have different rules when it comes to encryption. Finance must meet PCI DSS standards. Healthcare organizations must comply with HIPAA. Government and defense entities follow FIPS 140-2 or 140-3 validated cryptographic modules.

When evaluating encryption standards, look for algorithms that are NIST-approved, such as AES-256 for symmetric encryption and RSA or ECC for key exchange and authentication.

The importance of encryption key management

Encryption key management ensures that the digital keys to your data are created, stored, rotated, and retired securely. Best practices include:

• Separate keys from data: Never store encryption keys in the same location as the encrypted files.
• Use centralized key management systems (KMS): Tools like AWS KMS, Azure Key Vault, and on-premises HSMs simplify secure key lifecycle management.
• Rotate keys regularly: This reduces the risk of long-term exposure if a key is compromised.
• Enforce access controls: Only authorized users and systems should have the ability to use and manage encryption keys.

Data in motion: Securing the transit pathway

When data moves between systems, users, and applications, whether through emails, messaging, file transfers, or API calls, it becomes data in motion. This is one of the most vulnerable moments in the data lifecycle because information is actively traveling across networks, sometimes through untrusted or public channels.

Common threats to data in motion

One of the biggest risks to data in transit is that attackers can intercept it, by monitoring network traffic to capture sensitive information. They can use techniques like packet sniffing or eavesdropping on unsecured Wi-Fi networks.

Another major threat is the Man-in-the-Middle (MITM) attack, where an attacker secretly positions themselves between two communicating parties. Attackers can intercept or modify the data being exchanged.

Then there is session hijacking. After a user authenticates to a web application, attackers can steal or spoof their active session token to impersonate them, gaining access without needing credentials.

How to secure data in motion: Encryption techniques

How can data in motion be secured? Encryption is the first line of defense for protecting data as it travels:

• Transport Layer Security (TLS): The standard protocol that encrypts data transmitted over the internet. TLS ensures secure browsing sessions, represented by the HTTPS lock symbol in web browsers.
• HTTPS (Hypertext Transfer Protocol Secure): Built on top of TLS, HTTPS secures communications between browsers and websites, protecting sensitive transactions like online payments.
• IPsec (Internet Protocol Security): A protocol suite that encrypts and authenticates IP packets, commonly used for VPNs to create secure tunnels between remote users and corporate networks.

Defenses beyond encryption

While encryption protects the data itself, other security measures include secure network design and active monitoring:

• Use secure communication protocols: Enforce TLS 1.3, HTTPS, SSH, and SFTP. Disable outdated versions (such as SSL and TLS 1.0) that are vulnerable to attacks.
• Use network segmentation: Divide networks into smaller, isolated zones to limit how far attackers can move if they gain access.
• Deploy firewalls and intrusion detection systems: These act as gatekeepers, filtering traffic and blocking malicious activity.
• Enforce strong authentication: Require mutual TLS, certificate-based authentication, or secure tokens to verify both users and systems.

Protecting data in use: The overlooked frontier

When most of us think about data protection, we think of securing stored files and encrypting data in transit. But what about the moment when data is actively being processed—opened, analyzed, or edited by an application or user? This is known as data in use, and it is as vulnerable as other states.

Why data in use is so exposed

Unlike encryption of data at rest and in transit, data in use must be decrypted so that systems can work with it. That temporary exposure creates a critical attack window. Threats include insider activity, memory scraping, and malware that can spy on or manipulate data as it is being processed.

Modern methods for securing data in use

Because traditional encryption doesn't protect data while it's being used, organizations need techniques designed specifically for this stage:

• Confidentialcomputing: A hardware-based approach that isolates sensitive workloads inside a trusted execution environment (TEE), or secure enclave. Data remains protected even while being processed.
• Memoryencryption: Encrypts the contents of system memory to prevent attackers from reading data if they gain physical access or compromise the operating system.
• Secureenclaves: Specialized areas within a processor (such as Intel SGX or AMD SEV) where sensitive operations occur in isolation from the rest of the system.

Complementary techniques: Data masking and tokenization

Not every organization can immediately adopt confidential computing, but there are other effective strategies:

• Data masking replaces sensitive information with fictional yet realistic-looking data in non-production environments, allowing safe testing and analysis.
• Tokenization substitutes sensitive values with unique tokens that have no exploitable meaning outside a secure system and is widely used in payment systems and healthcare applications.

Aligning encryption practices with DSPM principles

Sometimes, organizations deploy strong encryption tools but their sensitive or shadow data remains exposed simply because they don't know it exists or can't confirm whether encryption is consistently applied. This is where Data Security Posture Management (DSPM) comes in.

Visibility across all data states

DSPM brings together visibility, classification, and continuous risk assessment for data in on-premises, cloud, and hybrid environments. It helps security teams see where data lives, how it moves, and who has access. By unifying identity and data security, DSPM answers critical questions like: Which sensitive data is encrypted and which is not, who can access it, and whether encryption keys and policies are being managed properly.

Continuous monitoring and automated policy enforcement

Data environments change fast. New files are created, permissions are modified, and cloud apps sync data in ways that security teams can't track manually. DSPM solves this by automating monitoring tasks. With continuous scanning, alerting, and policy enforcement, DSPM ensures that encryption controls align with security baselines and compliance needs in real time.

Key management and access controls: foundations of effective encryption

For encryption to be truly effective, it's important to manage the keys properly and enforce strict access controls.

The lifecycle of encryption keys

Encryption keys have a lifecycle: Generation (using strong algorithms), Distribution (securely shared with authorized systems), Rotation (changed periodically), and Revocation/Expiration (securely destroyed when no longer needed). Organizations can use key management solutions like AWS KMS, Azure Key Vault, and on-premises HSMs to manage this process.

Access controls: The human side of encryption security

Access controls determine who can decrypt and use encrypted data. Organizations should adopt Role-Based Access Control (RBAC) to assign permissions based on job roles, and least privilege principles so users and systems have only the minimum access required to perform their tasks.

Integrating with Identity and Access Management (IAM)

Encryption and access control work best when tied to an IAM framework. With IAM, organizations can enforce MFA before granting decryption rights, link encryption key usage directly to verified identities, automatically revoke access when users change roles or leave the organization, and audit every access event for compliance and forensics.

Compliance, standards, and regulatory alignment

Data protection isn't just about security. It's also about compliance. Regulations and standards define how organizations must protect personal, financial, and sensitive information. Encryption plays a central role as both a safeguard and a compliance requirement.

Encryption requirements under major regulations

Encryption serves as a compliance shield in regulatory frameworks. It provides concrete proof that organizations are protecting customer data and maintaining trust.

Industry standards: NIST and ISO/IEC 27001

Technical standards guide how encryption should be applied to data at rest and in transit. By following these standards, organizations can enhance data security and prove compliance during audits.

How DSPM helps maintain compliance

While compliance frameworks define what should be protected, DSPM helps verify that it is. Netwrix 1Secure streamlines this process by mapping encryption posture directly to frameworks like GDPR, HIPAA, PCI DSS, and NIST standards. It continuously scans Microsoft 365, Active Directory, file servers, databases, and cloud platforms to verify that encryption and permissions align with compliance baselines.

Real-world scenarios: encryption in action

Encryption is a practical necessity for every environment where data lives and moves.

Encryption for backup data and disaster recovery

Backups act as a crucial safety net against data loss, system failures, and ransomware attacks. However, unencrypted backups can become a security risk if stolen or exposed. It's important to lock your backup files with encryption, especially for organizations handling customer, healthcare, and financial records.

Secure cloud databases with Bring Your Own Key (BYOK)

Many cloud providers offer Bring Your Own Key (BYOK) models that allow organizations to generate, own, and manage their own encryption keys while still leveraging the cloud provider's services. This approach improves control and accountability.

The role of Netwrix 1Secure DSPM

While technologies like BYOK and backup encryption are essential, they don't always guarantee full coverage. Netwrix 1Secure DSPM bridges that gap by validating whether these measures effectively protect sensitive and shadow data. It continuously discovers unencrypted and misclassified data, helping organizations spot blind spots.

Common pitfalls and how to avoid them

• Over-reliance on a single method: Relying on just full-disk encryption can give a false sense of security. Use a layered encryption strategy that protects data at rest, in motion, and in use.
• Poor key management practices: Encryption is useless if keys are mishandled. Implement centralized key management with strict policies.
• Lack of visibility into encryption coverage: Organizations often assume data is fully encrypted until an audit or breach proves otherwise. Deploy tools that continuously discover and assess data.

The DSPM advantage: beyond encryption

DSPM doesn't replace encryption but amplifies it. By combining continuous visibility, risk assessment, and automated policy monitoring, organizations can move towards comprehensive and proactive data protection. DSPM tools detect hidden shadow data pockets and assess their level of exposure, helping in remediation efforts.

Conclusion: building a resilient encryption strategy

Securing data at rest, in motion, and in use demands consistent visibility, control, and alignment across every stage of the data lifecycle. Encryption is crucial, but its true strength comes from how it's applied, managed, and monitored. By combining proven encryption best practices with DSPM, organizations can gain the insight needed to identify gaps, validate coverage, and safeguard sensitive and shadow data alike.

Explore Netwrix 1Secure DSPM to see how you can unify visibility, encryption validation, and automated policy enforcement across your organization.