ERP Encryption for Data at Rest and in Transit
Encryption is a foundational data protection control that renders ERP data unreadable to unauthorized parties even if physical or logical access controls are bypassed. ERP systems require encryption at two layers: data in transit (protecting data moving between clients, application servers, and databases) and data at rest (protecting stored data in databases, backups, and file systems). This guide covers encryption implementation aligned with NIST SP 800-175B, PCI DSS Requirement 3/4, and CIS Control 3 standards.
Transport Layer Encryption (Data in Transit)
All network communication to and from the ERP system must be encrypted using TLS 1.2 or higher. This includes client-to-web-server connections, application-server-to-database connections, inter-service communication between ERP modules, and API integration traffic. TLS configuration must use strong cipher suites (AES-256-GCM, CHACHA20-POLY1305) and disable deprecated protocols (SSL 3.0, TLS 1.0, TLS 1.1). Certificate management is critical: use certificates from trusted CAs with 2048-bit minimum RSA keys or 256-bit ECDSA keys, and implement automated certificate renewal to prevent expiration-related outages.
- Enforce TLS 1.2+ on all ERP web endpoints with HSTS headers (max-age 31536000, includeSubDomains) preventing protocol downgrade attacks
- Configure strong cipher suites: TLS_AES_256_GCM_SHA384, TLS_CHACHA20_POLY1305_SHA256; disable CBC mode and RC4 ciphers entirely
- Encrypt database connections using TLS between application servers and database engines (SQL Server: Force Encryption, PostgreSQL: sslmode=verify-full)
- Deploy certificates from trusted CAs with minimum 2048-bit RSA or 256-bit ECDSA keys and automated renewal via ACME/Let's Encrypt or internal PKI
- Scan all ERP endpoints quarterly with SSL Labs (target A+ grade) or testssl.sh to verify TLS configuration compliance and cipher strength
Storage Encryption (Data at Rest)
Data at rest encryption protects ERP data stored in databases, file systems, backups, and archive storage from unauthorized access through physical media theft or unauthorized storage access. Database-level encryption options include Transparent Data Encryption (TDE) for SQL Server and PostgreSQL, which encrypts data files and backup files without application changes. For sensitive fields (SSN, credit card numbers, salary data), column-level encryption provides granular protection that restricts access to authorized application roles only, adding defense beyond TDE.
- Enable Transparent Data Encryption (TDE) on ERP databases encrypting data files, log files, and backup files at the storage layer
- Implement column-level encryption for highly sensitive fields (SSN, credit card, salary) using AES-256 with application-managed keys
- Encrypt file system storage for ERP attachments, document management, and report output directories using OS-level encryption (BitLocker, LUKS)
- Encrypt all ERP backup files with AES-256 and store encryption keys separately from backup media to prevent single-point compromise
- For cloud deployments, enable server-side encryption on all storage services (AWS S3 SSE-KMS, Azure Storage Encryption) with managed or CMK keys
Key Management and Compliance Validation
Encryption is only as strong as the key management practices protecting the encryption keys. A robust key management program includes key generation using cryptographically secure random number generators, secure key storage in hardware security modules (HSMs) or cloud KMS services, automated key rotation on defined schedules, and documented key recovery procedures. NIST SP 800-57 provides comprehensive guidance on key management lifecycle, and PCI DSS Requirement 3.5-3.6 mandates specific key management practices for systems processing cardholder data.
- Store encryption keys in HSMs (FIPS 140-2 Level 2+) or cloud KMS services (AWS KMS, Azure Key Vault) separate from encrypted data
- Implement automated key rotation: TDE master keys annually, column encryption keys per policy, TLS certificates before expiration
- Document key recovery procedures and test annually ensuring encrypted data remains accessible if primary key custodians are unavailable
- Maintain key management audit logs tracking all key operations: generation, rotation, access, deletion for compliance evidence (NIST SP 800-57)
- Validate encryption implementation annually through penetration testing confirming data is not accessible without proper decryption keys
Need to implement comprehensive encryption for your ERP system? Netray delivers encryption architecture design and implementation aligned with NIST and PCI DSS standards.
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