FIPS (Federal Information Processing Standards) are a set of guidelines for cryptographic modules issued by the National Institute of Standards and Technology (NIST), an agency of the federal government of the USA. These standards help ensure that data is encrypted in a secure and standardized way.

Complying with FIPS is crucial for security, especially if you're dealing with federal data or partnerships. FIPS 140-3, which spans four levels, equates to full compliance and offers the maximum level of security.

Incorporating FIPS compliance into your company network is an ongoing process, not a one-time event. With the right tools, regular training, and diligent monitoring, you can ensure your network remains secure and in compliance with federal guidelines.

What is the difference between FIPS 140-2 and FIPS 140-3?

FIPS 140-2 and FIPS 140-3 are the most critical standards for FIPS compliance. FIPS 140-2, which stands for Federal Information Processing Standard Publication 140-2, is used to approve cryptographic modules. 

FIPS 140-3 modules can include hardware, software, or firmware that encrypts and decrypts data. They are more like a vault where you store your sensitive information. But not just any vault—one that has passed rigorous tests to ensure it's nearly impenetrable.

For example, if you are using a VPN, the cryptographic module within the VPN software must be FIPS 140-2 validated. This validation assures you that the data traveling through your VPN is secured to federal standards. Most reputable VPN services like Cisco and Fortinet offer FIPS 140-2 compliant options. 

Talking about encryption tools, if you use encryption software like Microsoft BitLocker to secure your laptops or external drives, it must be FIPS 140-2 compliant. This compliance means that even if someone gets hold of your hardware, the data remains secure. 

FIPS 140-3 is the newer standard. It is an update on FIPS 140-2 that has more stringent requirements. The update aims to enhance the robustness of cryptographic modules even further. 

So, if your company is considering new encryption tools or modules, they're likely to adhere to FIPS 140-3. Companies like Entrust and Thales have started rolling out FIPS 140-3 compliant modules.

You also need to ensure that any cloud service providers you work with are FIPS 140 compliant. Services like Amazon Web Services (AWS) and Microsoft Azure offer modules that meet these standards. This compliance ensures that any data you store or process in the cloud remains secure.

In practical terms, adherence to FIPS 140-2 and FIPS 140-3 means you are doing everything possible to protect sensitive information. Whether it's customer data, financial records, or proprietary information, these standards help you maintain the integrity and confidentiality of your data.

What is FIPS 199?

FIPS 199 categorizes information and information systems so you can figure out the impact of potential security breaches. Let’s say you handle sensitive customer data. You need to think about what would happen if that data gets lost, altered, or misused. FIPS 199 defines three security objectives:

Confidentiality

Confidentiality is about keeping information secret. For example, your customers financial and identity information is private and should be kept under lock and key. So exposing your customer database to unauthorized users is a breach of confidentiality. 

Integrity

Integrity is about ensuring the information is accurate and not tampered with. So, if someone can alter the transaction records in your system without you knowing, that’s a breach of integrity. 

Availability

Your systems should be available at all time. They should be up and running when needed. If your network goes down during peak hours and customers can’t access your services, you have breached the FIPS 199 objective of availability.

Each objective can have a low, moderate, or high impact level based on the potential damage. For instance, losing access to a non-critical system causes inconvenience and not much else has a low impact on availability. If it disrupts business operations and leads to significant financial loss, it has a high impact.

So, to set your systems up for compliance, you must first identify the information types you handle. After that, apply FIPS 199 to categorize the information system’s impact level for confidentiality, integrity, and availability. 

Let's use your financial records system as an example. You might categorize its confidentiality and integrity impacts as high because unauthorized access or modification could lead to major financial and reputational damage. Its availability impact might be moderate if you have effective backup systems in place that can restore operations quickly. 

This categorization helps you prioritize your security measures. Systems with a high impact need more stringent controls than those with a low impact. By using FIPS 199, you ensure that you take a structured and consistent approach to securing your information systems based on their importance and the risks they face.

What does FIPS 200 entail?

FIPS 200, or the Federal Information Processing Standard Publication 200, sets out the minimum security requirements for federal information and information systems. It focuses on protecting your data and ensuring your systems are secure.

Published in March 2006, FIPS 200 was developed by the National Institute of Standards and Technology (NIST). Interestingly, this standard was mandated by the Information Technology Management Reform Act of 1996, also known as FISMA. The main goal here is to provide a framework for managing the risks associated with information security.

The standard outlines a risk-based process to select appropriate security controls. It’s not about guessing what might work; it’s about identifying the specific risks you face and addressing them systematically. 

For example, if you have sensitive employee data, you need to implement strong access controls to ensure only authorized personnel can access this information.

An integral part of FIPS 200 is its list of control families. Think of these as categories of security controls. There are quite a few, including Access Control, Audit and Accountability, and Incident Response. Each of these families plays a crucial role in maintaining our information security.

For instance, the Access Control family requires measures to ensure that users can only access information necessary for their roles. This could involve setting up user permissions and regularly reviewing these permissions to prevent unauthorized access. 

On the other hand, the Incident Response family is about preparing for and managing security incidents. Having a clear incident response plan can help you quickly address and mitigate the impact of any security breach.

FIPS 200 also talks about other important areas like security assessment and authorization, configuration management, and media protection. Let's take configuration management as an example. It involves managing changes to information systems to ensure they continue to meet security requirements. This could involve regular updates and patches to software to fix vulnerabilities.

This standard serves as a crucial guide in your efforts to protect information and maintain the integrity and security of your systems. By understanding and implementing the requirements of FIPS 200, you can better safeguard our information assets and manage risks effectively.

Who should comply with FIPS?

There are certain scenarios where FIPS compliance isn't only recommended but essential. For instance, if you're involved with government contracts, FIPS compliance is often a mandatory requirement. 

This is particularly true for departments dealing with sensitive information like the Department of Defense or Homeland Security. These agencies require robust encryption standards to protect national security data.

In the healthcare sector, FIPS compliance also comes into play. If you're handling electronic health records under HIPAA regulations, using FIPS-validated encryption ensures that patient data is securely protected. This not only meets regulatory requirements but also builds trust with your patients.

Financial services are another critical area. When dealing with transactions, customer data, and regulatory requirements from bodies like the SEC or FINRA, FIPS compliance helps in safeguarding financial information. For example, securing online banking transactions or credit card processing systems to prevent fraud or data breaches.

Cloud services providers who cater to government agencies or sectors requiring stringent security measures must ensure their solutions are FIPS-compliant. This includes everything from data storage and processing to secure communication channels.

In a corporate scenario, if your company is expanding globally and dealing with international data transfers, FIPS compliance can be a key differentiator. It shows that your company meets high-security standards, which can be particularly reassuring for international clients and partners.

Even in the realm of Internet of Things (IoT), where devices are interconnected and communicating sensitive data, FIPS compliance can be crucial. For example, smart city infrastructure or industrial IoT applications that handle critical operational data would benefit from the robust security measures that FIPS compliance offers.

How to achieve FIPS compliance

Check your cryptographic modules for FIPS 140-2 certification

The first step is usually to check if your cryptographic modules were FIPS 140-2 or FIPS 140-3 certified. These certifications are vital because they validate your encryption algorithms. 

One example is your VPN. You have to switch to using a VPN protocol that supports FIPS-compliant ciphers like AES. Avoid any algorithms not approved by FIPS, like certain modes of DES or RC4.

Audit your hardware

Replace old equipment with newer models that support FIPS-compliant encryption. For instance, you can upgraded your firewalls to models from Cisco, which offer built-in FIPS compliance. 

This is necessary for securing your network traffic. Ensure your servers are running operating systems configured for FIPS. For example, you can move to Windows Server 2019, which has a FIPS mode that can be enabled.

Train your employees on FIPS standards 

Conduct sessions to educate your team about FIPS requirements. Focus on secure communication practices and proper data handling techniques. For instance, you may institute policies for using encrypted USB drives, specifically those certified for FIPS 140-2, for any physical data transport needs.

Verify that your cloud service are FIPS-compliant

If you use AWS, configuring services such as S3 and EC2 for FIPS 140-2 compliance was paramount is natively supported. AWS provides detailed guides on enabling FIPS mode. This means your data is encrypted according to federal standards at rest and in transit .

Monitor and document your compliance efforts 

You must conduct regular audits to ensure ongoing compliance. Tools like Splunk can help monitor your network for any non-compliant configurations or anomalies. Keeping detailed records of your compliance efforts is also crucial. Those records help during audits and ensured we maintained compliance over time.

Achieving FIPS compliance is about aligning your tools, systems, and processes with the standards. It takes effort, but knowing your network is secure is well worth it.