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FORTNER, BAYENS, LEVKULICH & GARRISON, P.C.
Certified Public Accountants

Password Versus Encryption

By: Tyler Tobin, GSEC/GIAC
Date: 12/3/09

Computer systems and other resources are often times protected by passwords. A password allows for controlling access to some type of information. A password is used to prove identity or to gain access to a resource. As we all know a password must remain secret from others that are not allowed access to the resource.  There are a number of disadvantages to passwords. They may be stolen, cracked, forgotten or written down.  But what are the differences between a password protected resource and an encrypted resource?

Encryption also protects access to resources such as data. However, encryption is the control used to transform information using an algorithm to make the information unreadable to anyone that does not have access to the key. Imagine using a magnifying glass to look at data. Generally speaking, if data is protected by a password you would be able to see that the password may be stored in clear text allowing for you to unlock the data. However, if the data was encrypted you would not be able to make sense of the data unless you had the encryption algorithm and key.

Both passwords and encryption have limitations when it comes to preserving the integrity of information. However, there are clear distinctions between the two processes. In general terms, a password is a secret word or combination of letters, numbers and symbols. On the other hand, encryption is the process of transforming information to make it unreadable to anyone except those possessing the key. So the next time you are asked to remember yet another password or encryption key, you should understand why.