Encryption tossed into the too-hard basket

Very few enterprises in Australia use encryption to protect sensitive data, especially if it involves customer data.

Given the high number of security breaches, Deakin University IT director Craig Warren said it is alarming to learn that so few companies make use of encryption.

While the university doesn't encrypt data, Warren said strict security protocols are in place so encryption could end up being a burden.

"We heavily segment our Virtual Local Area Network (VLAN) and encrypt any password exchange as well as things like human resources information; but we do not encrypt backup tapes and laptops," Warren said.

"Even if you had backup tapes sent offsite most storage companies have clauses in their contracts preventing them from accessing the data. Because of our security, encryption is not an issue for us."

But the reality is only 4.2 percent of companies have an enterprise-wide encryption plan, according to the Ponemon Institute's 2005 National Encryption Survey which was commissioned by the PGP Corporation.