Encrypted Backups

Updated: 2026-02-24

Plain English Translation

Organizations should ensure that their backup data is encrypted to protect it from unauthorized access if the storage media is stolen or compromised. By utilizing backup encryption, sensitive information remains secure even if threat actors bypass other network defenses. Additionally, the decryption keys required to restore this data must be stored securely, strictly limiting access to authorized personnel only.

Executive Takeaway

Encrypting backups and tightly controlling access to decryption keys prevents data breaches if backup storage is compromised.

ImpactHigh
ComplexityMedium

Why This Matters

  • Mitigates the risk of data extortion during ransomware attacks by rendering stolen backups unreadable.
  • Protects sensitive organizational and customer data stored in offsite or cloud environments.
  • Satisfies regulatory expectations and compliance requirements regarding the protection of data at rest.

What “Good” Looks Like

  • Implement strong encryption standards (e.g., AES-256) for all critical backup repositories, and document encryption coverage and evidence in tools like WatchDog Security's Compliance Center.
  • Storing encryption key management systems completely separate from the primary network and backup storage.
  • Restrict access to decryption keys using multi-factor authentication and the principle of least privilege, and track access approvals and periodic reviews in tools like WatchDog Security's Policy Management.

Backup encryption is the process of scrambling data before or during backup operations so that it cannot be read without a specific decryption key. It is important because it protects sensitive data from unauthorized access, ensuring confidentiality even if physical drives are stolen or cloud storage is breached.

Yes, under CyberSecure Canada encrypted backups requirements, organizations are strongly advised to consider the use of encrypted backups with securely stored and recoverable key material. Implementing this control ensures that data remains secure and helps satisfy broader regulatory obligations surrounding data protection.

To encrypt backups securely, utilize strong encryption algorithms like AES-256 and integrate centralized encryption key management tools. Ensuring auditability involves logging all access to backup repositories and maintaining strict records of who accessed or utilized the encryption keys.

Where to store backup encryption keys is critical; they must be kept in a secure, isolated location separate from the backup data itself, such as a dedicated Key Management Service or a secure password vault. Storing keys alongside the backups entirely defeats the purpose of the encryption.

Who should have access to backup decryption keys is strictly limited to authorized IT personnel or officers who explicitly require it for disaster recovery. Access is controlled using the principle of least privilege, role-based access control, and enforced multi-factor authentication.

Cloud backup encryption with KMS is a software-based approach suitable for most organizations, offering scalable encryption key management. An HSM for backup encryption keys involves dedicated tamper-resistant hardware, providing the highest security level typically required by enterprise or highly regulated environments.

How to rotate backup encryption keys involves generating a new key for future backups while securely retaining the old keys to decrypt historical archives. Modern backup solutions and key management tools handle this automatically by securely associating specific key versions with their respective backup sets.

Backup encryption at rest vs in transit refers to the state of the data; in-transit encryption protects data while it travels over the network, while at-rest encryption protects the data once it is stored on the media. Both are best practices for encrypted backups and key storage.

Ransomware resilient encrypted backups ensure that even if threat actors exfiltrate the backup files, they cannot read or publicly leak the contents without the decryption key. This significantly reduces the impact of data extortion tactics commonly used in modern ransomware attacks.

Organizations should maintain an encryption policy detailing algorithms and key management procedures, access logs for decryption keys, and system configuration evidence. This documentation proves to auditors that keys are securely stored and accessible only to authorized personnel.

Encrypted backups only reduce risk if key access is tightly controlled and provable during reviews. Tools like WatchDog Security's Compliance Center can map this control to required evidence, track implementation status, and help collect artifacts like encryption policies, key access logs, and restore test records in an audit-ready format.

Some legacy systems or vendor constraints can prevent encrypting certain backup sets, but the risk still needs to be assessed, approved, and time-bounded. Tools like WatchDog Security's Risk Register can document the exception, assign compensating controls (e.g., isolation, access restrictions), track remediation deadlines, and support risk acceptance workflows.

CYBERSECURE-CANADA Section 5.6.2.5

"The organization should consider the use of encrypted backups with securely stored and recoverable key material. Decryption keys and/or unencrypted backups should be stored securely and should be accessible only to authorized employees or officers."

VersionDateAuthorDescription
1.0.02026-02-24WatchDog Security GRC TeamInitial publication