New ASC X9 standard improves cost-efficiency for data encryption
The Accredited Standards Committee X9 Inc. has announced the publication of a new standard that defines requirements for using a particular method of preserving formatting in the encryption of financial services data.
The X9.124 standard defines a collection of format-preserving encryption methods for financial services. According to a press release, FPE is useful in situations where fixed-format data, such as primary account numbers or Social Security numbers, must be encrypted, but there is a requirement to limit changes to existing communication protocols, database schemata or application code.
Encryption has historically been expensive to deploy in real-world systems because of the need to alter existing systems and applications. The benefit of FPE techniques is that system modifications are kept to a minimum. IT equipment vendors, banks, and retailers are some of the sectors that will benefit from X9.124-2, the release said
“This new standard describes a straightforward method of preserving the format of important data while ensuring its security, leading to cost efficiencies in systems and processing throughout the industry,” said ASC X9 Executive Director Steve Stevens.