The Hidden Costs of Not Using HSMs in Regulated Sectors
In regulated sectors such as banking, healthcare, and government services, the importance of safeguarding sensitive data is well understood—but the implementation of security measures like Hardware Security Modules (HSMs) is often seen as optional due to perceived cost, complexity, or integration challenges. This perspective is not just short-sighted—it’s potentially disastrous. While the upfront cost of HSMs can be significant, the hidden costs of not using them—ranging from regulatory penalties to data breaches and reputational damage—can be exponentially higher. In this blog, we delve deep into these hidden costs and explore why HSMs should be a cornerstone of any security architecture in regulated industries. What is an HSM and Why Does It Matter? A Hardware Security Module (HSM) is a tamper-resistant physical device designed to securely generate, store, and manage cryptographic keys. It performs critical operations such as encryption, decryption, authentication, and digita...