Protecting Your Retail Confidential Data with VeraCrypt

POS SOFTWARE

Getting Started with VeraCrypt

We lock the shop door every night, secure the till, and run a stocktake. However, if a laptop goes missing or someone copies your files, your confidential information could be completely exposed. To keep your POS system and back office running, you probably have many staff members and occasionally repair technicians accessing it. This shared access creates a problem for your sensitive information.

Everyday Risks in Retail

While sharing system access with staff keeps the shop floor moving, it does create security problems.

  • Employees snooping through documents on back-office PCs.
  • Unattended computers left unlocked while you help customers browse greeting cards or magazines.
  • Stolen devices from your shop, car, or home.

These risks can expose confidential information, so we recommend a simple tool like VeraCrypt to protect your information even when your computers are out of your control.

How VeraCrypt Works

POS Solutions has been recommending VeraCrypt for years.

It is one of the simplest and most effective tools for securing confidential retail data. It is a free, open-source program. It acts like a digital safe on your device. You can use it as usual, or drag your private files into it. Without your password, no one can open or read anything inside it.

How secure is VeraCrypt

In 2008, in the Brazilian Banker Case. Police seized five hard drives from a suspect that were fully encrypted using a predecessor to VeraCrypt. The Brazilian National Institute of Criminology failed to crack them for five months, so they went to the FBI. The FBI spent 12 months attempting to break the encryption but ultimately failed.

In a 2015 U.S. case involving a former police sergeant, the U.S. government was unable to access the data.

Based on this, I can say that VeraCrypt is exceptionally secure.

Getting Started

You can easily set up this level of security for your own files without any special IT skills.

  1. Download VeraCrypt for free from its official website.
  2. Install and run it.
  3. Create a new volume and select a size. I suggest 4GB for your files.
  4. Select the default AES encryption and set a strong, unique password of at least 12 characters that includes letters, numbers, and symbols.

Mount the volume so it appears as a new drive letter, say I:

  • Move your sensitive files to I: and work as usual with the files on I:
  • Dismount the volume when finished to safely lock everything away.

You still need to back up the encrypted file just like any other information. People tend to forget that computers are mechanical devices and they can fail like any other machine.

Mistakes to Avoid

Even simple tools work best with good daily habits to ensure your data stays secure.

  1. Simple passwords: Avoid "password123". This is the first thing a hacker will try. Pick something memorable but unique that only you know, like your wedding song, the singer and year.
  2. Suspicious filenames: Prevent suspicion by giving your vault an obscure video file name rather than "Private Payroll", say something like "Zootopia_2"
  3. Leaving volumes mounted: Always dismount your volume when stepping away from the computer; this only takes seconds.

VeraCrypt vs BitLocker

A common question is why we prefer VeraCrypt to Microsoft's built-in BitLocker, which is heavily pushed by one of our competitors. Here is why VeraCrypt provides a much better solution.

The Functional Differences:

BitLocker is designed to lock the entire computer; this is not required in most shops. Plus, BitLocker automatically unlocks at startup, meaning any staff member using the till has access to all the data on that machine. VeraCrypt requires a password, giving you control over who can see your private files.

The Technical Problems with BitLocker:

Recently, BitLocker has suffered from major technical issues that can severely disrupt a business. In both October 2025 and April 2026, routine Windows security updates contained bugs that caused PCs to enter an "infinite BitLocker recovery loop". We have seen people locked out of their own computers as a result. Not good for a retailer to be locked out of their POS system at the start of the day.

The YellowKey Exploit:

Even worse than the bugs is a newly discovered vulnerability, "YellowKey. If what is said is correct, then someone can bypass BitLocker protection without a password. It is now being debated whether Microsoft built a backdoor into BitLocker after reading the information. I think they did.

The Trust Factor:

VeraCrypt is open-source and audited by independent experts. Its code is fully visible, meaning it is unlikely to have a hidden backdoor. BitLocker is closed, meaning you must trust Microsoft.

Conclusion

VeraCrypt is one hell of a good cyber protection.

Tip: Always dismount your volume when stepping away from the computer to keep sensitive files safe.
Warning: Never store your password in an easily accessible location or use weak, easily guessable passwords.

FAQ

Q: I caught staff snooping on the back-office PC through the network. Can VeraCrypt help?

A: Yes, even if someone snoops on your computer, no one can read, or even detect, what is inside a VeraCrypt volume, unless they know the password.

Q: I forgot the password to my locked folder. How do I recover my files?

A: You cannot retrieve the information unless you can remember the password. This is one of the biggest problems we have with VeraCrypt, and there is nothing anyone can do about it.

Q: Is VeraCrypt hard to set up?

A: Not at all. I have set up many VeraCrypts and never had a problem. You need about 4GB of space on the computer, and choose a strong password (I suggest at least 12 characters). You do not need any special tech skills to get started.

Q: If I leave the computer to serve customers, are my files safe?

A: On your computer, your files are only safe if you dismount (lock) the volume before stepping away from the computer to the shop floor.

Q: Is VeraCrypt actually secure against hackers?

A: VeraCrypt is incredible. Real-world cases involving the FBI and international police forces have shown that without the password, even government agencies cannot crack the AES encryption.

Hackers will typically program your name, dates of family births, etc., and search for passwords, so avoid weak, easily guessable ones.

Q: Will VeraCrypt slow down my POS system?

A: A little. In practice, the files that need this level of security rarely require super-speed operation.

Q: What should I name my locked folder so it doesn't attract attention?

A: Avoid suspicious or obvious names like "Private Payroll" or "Confidential Data". I suggest using an obscure video file title, e.g., "The Shawshank Redemption (1994).AVI".

Q: Do I still need antivirus software if I encrypt my files?

A: Absolutely.

 

Update notes: I wrote an article on this a few months ago, but recently, YellowKey changed a lot here, so I totally rewrote the article 

Written by:

Bernard Zimmermann

 

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

 
 
 
 

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