Protecting Your Retail Confidential Data with VeraCrypt

POS SOFTWARE

Getting Started with VeraCrypt

We all store confidential information on our computers. For example: supplier pricing lists, customer contact details, payroll information, private and business documents, etc. Too many underestimate how easily this sensitive information can fall into the wrong hands, especially on shared devices that most businesses now rely on. Think about it: to keep your POS system running, you probably have staff and repair technicians accessing it many times. Each of them has plenty of opportunities to access it, and today it only takes them a moment. This has been a problem for years, and our preferred solution is VeraCrypt.

Everyday Data Risks in Your Store

In most retail businesses today, information in the system is shared with many people, including staff. While this is great for the business, it creates weak points in your data security. Here are some everyday risks you face:

  • Employees snooping through documents on back-office PCs.
  • Unattended computers are often left unlocked while you're busy serving customers on the shop floor.
  • Stolen devices from your office, car, or home.

These risks mean even honest mistakes or casual curiosity can expose confidential information. That's where a simple tool like VeraCrypt provides a safety net, even when devices slip out of your control.

What VeraCrypt Is and How It Works

At POS Solutions, we've recommended VeraCrypt for years as one of the simplest and most effective tools for securing confidential retail data. How can you keep your information secure in your business?

VeraCrypt is a free, open-source program that protects your privacy.

You can think of it like a digital safe on your device. You simply drag your private files into it, such as staff wages, supplier price lists, agreements, customer lists, and financial spreadsheets. Without your password, no one can open or read a single file inside. Even if a curious staff member tries to get in or a thief steals your laptop, they see only a locked, meaningless file. Your business secrets remain encrypted and safe. Only you can read it. If I were on the front computer and you were on the back computer, you could read this information, but I could not.

How VeraCrypt Protects Your Retail Business

VeraCrypt delivers practical protection tailored to retailers. Here's how it helps you every day:

  • Stops staff snooping: Without the password, no one, not even tech-savvy employees, can access the encrypted volume.
  • Prevents accidental access: Leave your computer safely. Files stay invisible and locked until you mount the volume.
  • Guards against theft: If your laptop, back-office PC, or USB drive is stolen, thieves can't access customer data, bank details, or private documents because they remain encrypted.
  • No IT skills needed: A simple setup wizard guides you. Secure your data without hiring expensive tech support.

These features mean you can share devices confidently while keeping critical information private.

A Real-World Example

There are two prominent court cases that demonstrate its mathematical resilience.

1. The Brazilian Banker Case (Operation Satyagraha)

The Target: Daniel Dantas, a Brazilian banker, was suspected of financial crimes.

The Incident: In 2008, Brazilian police seized five hard drives from his apartment during a raid. The drives were fully encrypted using TrueCrypt (older version of VeraCrypt).

The Effort: The Brazilian National Institute of Criminology (INC) attempted to crack the drives for five months using dictionary attacks but was unsuccessful. They then enlisted the FBI for assistance. The FBI spent 12 months attempting to break the encryption, but ultimately admitted defeat and returned the drives to Brazil still locked.

2. The "Philadelphia Police" Case (Francis Rawls)

The Target: Francis Rawls, a former police sergeant suspected of possessing illicit material.

The Incident: In 2015, Philadelphia police seized his devices, including two hard drives encrypted with TrueCrypt/VeraCrypt.

The Effort: Forensic examiners from the Regional Computer Forensics Laboratory (RCFL) and, potentially, federal partners attempted to decrypt the drives but were unsuccessful. They could not brute-force the password.

The Outcome: Unlike in the Brazilian case, the U.S. legal system invoked the All Writs Act to order Rawls to unlock the drives. He refused, pleading the Fifth Amendment. The court held him in civil contempt and jailed him for more than 4 years (he was released in 2020), during which he never unlocked the drives. The government never accessed the data.

Based on this, VeraCrypt is very secure.

Let us get started with VeraCrypt

Give me a call if you have any problems or want some pointers.

Get VeraCrypt from its official website here. It's free and easy to set up.

  1. Install VeraCrypt and launch it.
  2. Create a new volume and select a size, such as 4GB, for your files.
  3. I prefer the default AES encryption. Then set a strong, unique password of at least 12 characters (20 is better) that includes letters, numbers, and symbols.
  4. Once mounted, it will appear as a new drive letter (e.g., I:).
  5. Move your sensitive files in. Work as usual, but now your private files stay under lock and key.
  6. Once finished, dismount it to end.
  7. Always back up your volume header (VeraCrypt shows you how) in case of issues.

Common Mistakes to Avoid

Even simple tools like VeraCrypt work best with good habits.

  • Weak passwords: Avoid "password123". This is the first thing that a hacker will try; in the example above, that is what the Brazilian National Institute of Criminology (INC) did. Pick something like your wedding song and year. 
  • Suspicious filenames for the vault: Avoid names that will stand out, using something like "Mr Piper - The Proud Princess.AVI".
  • Forgetting backups: You still need to back up the file. 
  • Leaving volumes mounted: Always dismount when stepping away; this only takes seconds.
  • No recovery plan: Note your password in a secure location. If you lose your password, you have lost the files and no one can get them back.

Follow these, and VeraCrypt becomes a reliable daily shield.

Boost Your Overall Retail Cybersecurity

VeraCrypt is one piece of a strong defence. Combine it with these quick wins:

  • Lock computer screens after 5 minutes of idle time.
  • Staff should not use work PCs for personal use.
  • Update antivirus regularly.
  • Review the Australian retail cybersecurity checklist for more information.

These steps take little time but pay off big.

VeraCrypt vs. BitLocker

I know I am going to get questions as why I prefer VeraCrypt to BitLocker. I have tested them both and both are very good, why I prefer VeraCrypt:

Here are some Key Differences

Who Holds the Code?

  • VeraCrypt: Only you. No backdoors, no cloud storage.

  • BitLocker: Microsoft. Recovery keys are automatically backed up to your Microsoft Account by default. You need to remove this to ensure security. Its not hard, just something else you need to do.

Trust Factor

  • VeraCrypt: High. Open-source code audited by independent experts.

  • BitLocker: Low. Closed-source. You must trust Microsoft.

Detection

  • VeraCrypt: Looks like regular information when locked, so people will find it hard to know it's there.

  • BitLocker:  Easy to detect.

Employee Protection

  • VeraCrypt: You must unlock it.

  • BitLocker: Automatically unlocks at startup, allowing staff to access all data.

Speed

  • VeraCrypt: A bit slower.

  • BitLocker: Somewhat faster.

 

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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