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What ‘Bank-Level Encryption’ Actually Means for Client Data

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“Bank-level encryption” shows up in the marketing copy for almost every piece of legal software, but it rarely comes with an explanation of what it actually protects — or, just as importantly, what it doesn’t. For a firm handling privileged client information, it’s worth knowing the difference.

What Encryption Actually Does

Encryption scrambles data using a mathematical key, so that anyone who intercepts it without that key sees unreadable noise instead of readable information. It doesn’t stop someone from trying to access your data — it stops them from being able to use it if they succeed in intercepting it. That distinction matters: encryption is one layer of protection, not a complete security system on its own.

In Transit vs. At Rest

Data “in transit” is moving — from your browser to a server, for instance, whenever you load a client’s file. Data “at rest” is sitting in storage, on a server’s hard drive. Both need to be encrypted, and it’s worth asking a vendor about both specifically, since some products encrypt one and not the other. A client’s information should be unreadable to an outside party whether it’s being transmitted or simply stored.

What “256-Bit” Is Actually Referring To

The number refers to the length of the encryption key — 256-bit AES encryption is the current industry standard, used by banks, healthcare systems, and government agencies, and is effectively unbreakable by brute force with current computing power. Beyond this standard, a bigger number isn’t a meaningfully bigger benefit; what matters more is whether it’s implemented correctly and applied consistently across every place data moves or sits.

Encryption Doesn’t Replace Access Controls

Strong encryption doesn’t help if anyone with a login can see every client’s file regardless of whether they’re working on that matter. Role-based access — limiting who can view what, based on what they actually need for their work — closes a gap that encryption alone doesn’t address. The two work together: encryption protects data from outside interception, access controls protect it from unnecessary internal exposure.

Questions Worth Asking Any Vendor

Is data encrypted both in transit and at rest? Does the platform support role-based permissions, so staff only see the matters they’re assigned to? How often are backups taken, and are those backups encrypted too? A vendor that answers these clearly and specifically is a better sign than one that simply repeats the phrase “bank-level encryption” without elaborating.

The Bottom Line

Encryption is necessary, but it’s one piece of a larger picture that includes access controls, backup practices, and how a vendor actually implements the standard it advertises. The phrase on its own tells you less than the specifics behind it.

ProperFile uses industry-standard 256-bit SSL encryption for data transmitted to and from the platform, paired with role-based access so staff only see the matters they’re assigned to. Start a free trial or see pricing to see how it fits your firm.

See how ProperFile’s security features can help, or start a free trial to try it yourself.

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