Cryptographic algorithms can be implemented in both software and specialized hardware. A hardware solution is often desirable because it provides these advantages:

• More secure protection to maintain the secrecy of keys
• Greater transaction rates

If a data security threat comes from an external source, a software implementation of the cryptographic algorithm might be sufficient. Unfortunately, however, much fraud originates with individuals within the organization (insiders). As a result, specialized cryptographic hardware can be required to protect against both insider and outsider data security threats. Well-designed hardware can:

• Ensure the security of cryptographic keys
• Ensure the integrity of the cryptographic processes
• Limit the key-management activities to a well-defined and carefully controllable set of services