Data encryption is crucial for which of the following reasons?

Data encryption is crucial primarily because it protects sensitive information from unauthorized access. When data is encrypted, it is transformed into a secure format that can only be read or deciphered by someone who has the proper key or password. This process is essential in safeguarding personal and financial information, ensuring that even if data is intercepted during transmission or accessed unlawfully, it remains unreadable and thus secure.

In environments where sensitive data is handled—such as online banking, healthcare, and corporate transactions—encryption acts as a vital barrier against breaches and cyber threats. It helps maintain privacy and trust, which are essential for both individuals and organizations when sharing information over the internet.