FIPS 140-2 is a U.S. government standard created by NIST to set the benchmark for how cryptographic systems should be designed and tested to protect sensitive data. In simple terms, if an organization claims its encryption is “FIPS validated,” it means the underlying technology has been independently tested and meets strict government-grade security requirements.
You’ll often see FIPS 140-2 used in sectors that deal with confidential or regulated information. For instance, defense contractors use FIPS-validated hardware to secure classified communications, healthcare providers rely on it to protect patient data in line with HIPAA, and banks use it to safeguard digital transactions. Even cloud providers adopt FIPS-certified encryption modules to give clients confidence that their data is locked down to federal standards.