What is the law concerning the use of encryption technologies?

In North Carolina, the law concerning the use of encryption technologies requires two things: the use of reasonable security measures to protect data, and the implementation of encryption algorithms. Reasonable security measures are defined as technology that is appropriate to keep data secure, depending on the type and value of the data. An example of this type of measure is a locked file cabinet for storing sensitive documents, or a secure password protocol for accessing an online system. Encryption algorithms are used to ensure the confidentiality of data. Encryption takes a plain text message and scrambles it using a mathematical formula, creating ciphertext. This ciphertext can only be decrypted with a key that is known only to those who are authorized to view the data. In North Carolina, businesses must use encryption technology to protect confidential data, and must take reasonable security measures to ensure that the data is not accessed, used, altered, or disclosed without appropriate authorization. Failure to comply with this law can result in significant civil and criminal penalties.

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What is the law concerning the use of encryption technologies?

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