Data encryption safeguards sensitive information by converting it into a secured format that is unreadable to unauthorized users. Using mathematical algorithms, plaintext data is transformed into ciphertext, which can only be reverted to its original form using the correct decryption key. This process ensures confidentiality and protects data from exposure during transmission, storage, or when accessed by malicious entities. Implementing strong encryption protocols, such as AES (Advanced Encryption Standard), is vital for organizations to maintain data integrity and protect user privacy against breaches.