Disclaimer: This blog was originally published on August 2, 2021, and has since been updated for accuracy and clarity.
Email encryption turns emails into code so only authorized people can read them, protecting sensitive business data while sending and storing messages. Without it, emails can travel as plain text, making customer data, financial records, and company information easier to steal.
Every day, businesses send hundreds of emails with sensitive information. One stolen message can expose customer data, financial details, or contracts, which can hurt your business fast.
Email remains one of the main ways attackers target companies. Phishing, ransomware, and malware often arrive via email, so if messages are not protected, a single compromised email can put your entire organization at risk.
At Intelligent Technical Solutions (ITS), we help businesses protect email communications without disrupting daily workflows. As a managed IT and cybersecurity provider, we support healthcare, finance, and other regulated industries. Our team sets up email encryption that protects data and keeps work moving.
Peter Swarowski, ITS Chief Information Officer, explains common encryption methods and when businesses should use them.
In this article, you'll learn:
How Does Email Encryption Work?
Email encryption converts plain text into scrambled text, called ciphertext (coded format). Only someone with the right key, like a password, can read this complex string of characters. This keeps your message private while it travels online.
Businesses commonly use email encryption in three ways:
- Transport Layer Security (TLS) for server-to-server encryption
- Pretty Good Privacy (PGP) for end-to-end security
- Third-party plugins for everyday business use
Here's how each method works, according to Peter.
Opportunistic Transport Layer Security (TLS)
TLS creates an encrypted tunnel while email moves between servers. This helps protect emails as they travel through the internet.
However, Opportunistic TLS has a limit. If the receiving server doesn’t support TLS, the email may be sent in plain text instead. That's why TLS works well for everyday email, but it may not be enough for highly sensitive data.
Pretty Good Privacy (PGP)
PGP uses a one-time session key to encrypt (lock) the message, then encrypts that session key with the recipient’s public key so only the intended recipient can open it. The recipient’s private key unlocks the session key, which then decrypts (unlocks) the message for strong email protection.
Common PGP users include:
- Security researchers
- Whistleblowers
- Journalists
- Anyone requiring very private communication
PGP is powerful, but setup and key management can be tricky. Your team may need more training and support to use it correctly.
Third-Party Email Encryption Plugin
Most businesses use third-party plugins that work with their email systems. These plugins work with Outlook and other email apps. Users can encrypt messages with a button or policy setting.
When you send an encrypted email, the recipient may receive a notification. They may click a link to a secure page hosted by the third-party provider and verify their identity. Then they can read the message safely.
This option gives a good balance of security and ease of use for everyday business communications.
Read: How Does Microsoft Email Encryption Benefit Your Business?
Why Does Your Business Need Email Encryption?
Email encryption helps keep your business emails private. Without it, someone could intercept a message or access it later, exposing customer data, financial details, or company plans.
Many email systems now encrypt emails between servers by default. Although that usually helps reduce risk, it does not protect every message from sender to recipient. This gap matters most in regulated industries and when you share highly sensitive data.
Here are two key reasons your business may need email encryption.
1. Compliance Requirements Mandate Email Encryption
Some industries must encrypt certain email content to comply with regulatory requirements. For example, financial firms may need to protect sensitive financial data and PII (personally identifiable information), such as account details.
"If you send just a standard email, there's no guarantee that it wasn't viewed by anyone else. If you send it in an encrypted way, you can validate certain things," Peter said.
"For instance, when you send a license key, you can definitively say that the intended recipient redeemed it. These things matter a lot, especially in the regulation or legal space, where you have to do things in an industry-recognized way," he added.
Healthcare organizations also need strong safeguards when emailing patient data. That includes PHI (protected health information) under HIPAA.
According to the U.S. Department of Health and Human Services, covered entities may email patients if they use reasonable safeguards. Although encryption isn’t required by the Privacy Rule, it may be used as an added protection.
Other industries that require encryption include:
- Legal firms (attorney-client privilege)
- Insurance providers (policy and claims data)
- Government contractors (controlled unclassified information)
2. Email Encryption Protects Business Interests
Data breaches can be expensive and disruptive. They can lead to recovery costs, legal fees, and lost customer trust. Email encryption lowers the risk by keeping sensitive messages unreadable to unauthorized people. If an attacker intercepts an email, its contents remain protected.
Encryption also matters for everyday business emails. Contracts, vendor terms, pricing details, and financial reports often contain information you do not want to be exposed.
It also helps when emails get forwarded or sent to the wrong address. Even if the message ends up in the wrong hands, the details are harder to access.
Read eBook: Beyond Encryption: 5 Ways ITS Secure Safeguards Businesses
How ITS Helps Businesses Implement Email Encryption
Email encryption works best when it is set up correctly. A managed service provider can help you avoid gaps in settings, policies, and user training.
Intelligent Technical Solutions has helped organizations secure their emails since 2003. We manage Microsoft 365 licenses and email encryption settings to align with your risk and compliance needs.
Ready to protect your business communications? Schedule a free cybersecurity consultation to discuss your email security needs and compliance requirements. You can also request a free cybersecurity assessment to review your security posture.
Want to Learn More?
Explore these resources in our Learning Center:
- How to Determine if an Email is a Phishing Scam [Video]
- How to Protect Your Business from Spam Emails
- 7 Tips to Prevent Business Email Compromise (BEC) Scams
Frequently Asked Questions (FAQs)
Q: What is email encryption, and how does it protect my business?
A: Email encryption converts messages into coded text. Only approved recipients can read them using a key or a password, protecting customer data and company information from unauthorized access.
Q: Does my business need email encryption if we're not in a regulated industry?
A: Even without strict rules, encryption can still protect your business. If you email contracts, financial details, customer data, or confidential plans, encryption lowers the risk of leaks and protects competitive information.
Q: How difficult is it to implement email encryption for my team?
A: Many tools make it simple for users. Employees can encrypt messages with a button or policy setting, and your managed service provider can handle setup, policies, and training, so your team uses it correctly.
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