Question: What Does It Mean to Encrypt Data?
Encryption is essential to keeping your financial data safe when you use any personal finance software that imports, downloads or displays data from banks, brokerages or other financial institutions.
When financial data is encrypted, it is essentially cloaked from being viewed or used by anyone who does not have a password to open the data. Encrypting is a means of making data unreadable to unauthorized users or hackers, and is especially important with online financial software and smartphone personal finance and banking apps which transmit data over the Internet. Desktop financial software that is installed on a PC or Mac and that retrieves transaction updates from banking accounts or other financial institutions also needs to offer the security of data encryption.
Personal finance software data encryption involves mathematically-based scrambling of the data contained in files to make it is unreadable to anyone but authorized users.