Data storage and transmission risks refer to the dangers that data faces when stored in systems or during transmission over the internet. Data stored in systems and en-route is exposed to a number of risks. Vital information may be stolen or modified to pursue malicious purposes by unauthorized persons.

Data may be intercepted in the course of transmission. There are additional hazards of virus attacks and hacking that threaten data security. Confidential information such as credit card details may leak, causing financial and reputational losses to the parties involved. To protect against interception, cryptography can be used, which transforms information into an unreadable format called 'cyphertext' that can only be decrypted by those possessing a secret key.