FIPS 140-2 was a security standard created by the U.S. government. It was published by NIST to test and approve cryptographic modules. The standard explained how hardware, software and firmware should protect sensitive but unclassified data. For a long time, it was used in many industries that handled federal information or followed strict security rules. FIPS 140-3 has now replaced it. This new version lines up with international standards. In September 2021, NIST started to phase out the old version. All current FIPS 140-2 certificates will move to the “historical list” by September 2026. That means the standard is being retired. Organizations are now expected to switch to FIPS 140-3 systems to stay compliant.
Why FIPS 140-2 mattered
FIPS 140-2 certification historically played a key role in validating the trustworthiness of encryption technologies. It was widely adopted across government, financial services, healthcare and other regulated industries. Although being phased out, understanding its past impact helps contextualize current cryptographic requirements. FIPS 140-2 mattered because it:
- Enabled trust in products that handle sensitive data
- Ensured encryption modules met strict government standards
- Helped guide development of newer standards, such as FIPS 140-3
- Offered credibility to solutions operating in regulated industries
- Was typically required for vendors doing business with federal agencies
Its legacy continues to influence today’s cryptographic benchmarks, even as FIPS 140-3 takes precedence.
Who needs FIPS 140-2 compliance?
FIPS 140-2 was made for U.S. federal agencies and their contractors. Over time, other industries started using it too. Groups like defense teams, hospitals, banks and software vendors rely on approved cryptographic tools. These tools help them follow data security rules. While some legacy systems continue to operate under FIPS 140-2 validations, new implementations should target FIPS 140-3–validated cryptographic modules. Some systems still use older modules. Vendors may also mention it in their security claims. Any organization that still uses 140-2 products should start planning for a change. The current certificates will be retired in September 2026.
Key components of FIPS 140-2
FIPS 140-2 outlines strict criteria for cryptographic modules. The standard covers the following components:
- Authentication mechanisms: Require multi-factor or robust authentication to prevent unauthorized access
- Cryptographic algorithms: Ensure that encryption functions are tested and validated for strength and effectiveness
- Key management: Define secure methods for generating, exchanging and storing cryptographic keys
- Physical security: Specify safeguards against physical attacks on the cryptographic module
- Self-tests and integrity checks: Demand built-in mechanisms to detect tampering or failures
These elements ensure that cryptographic modules maintain the integrity and confidentiality of sensitive data.
FIPS 140-2 vs. FIPS 140-3
FIPS 140-3 builds on FIPS 140-2 by aligning more closely with international standards and improving test rigor. Key changes include:
- Alignment with ISO/IEC 19790 to support global interoperability
- Stricter physical security requirements and a focus on module lifecycle management
- Stronger emphasis on vendor accountability through enhanced documentation and traceability
- Support for new algorithms and stronger resistance against side-channel attacks
- Updated testing requirements that reflect modern attack vectors and cryptographic methods
As NIST retires FIPS 140-2 certificates by September 2026, enterprise organizations that want to stay compliant must ensure their systems align with FIPS 140-3.
Relevance of FIPS 140-2 to MFT
Use FIPS-validated cryptographic modules to encrypt files during transmission.
Protecting data in transit
Support encrypted protocols like SFTP, FTPS and HTTPS to meet FIPS 140-validated encryption standards.
Safeguarding stored data
Offer at-rest encryption using FIPS 140-validated algorithms to secure stored files.
Ensuring interagency compliance
Help federal agencies and contractors comply with cryptographic security standards for sensitive file transfers.
FIPS 140-2 FAQs
What is FIPS 140-2 used for?
FIPS 140-2 is a rule made by the U.S. government. It’s used to check if cryptographic modules follow security standards. These tools handle things like encryption, hashing or managing keys. To get checked, a vendor sends the module to a lab. That lab must be approved by NIST. The lab runs tests to see if the module passes. This is important for organizations that use sensitive or regulated data. A validated module gives proof that the system protects the data the right way.
FIPS 140-3 is the newer version, but many groups still use 140-2 for now. Switching takes time, and some aren’t ready yet. If a module passes, it shows that security functions work as expected. This helps with audits or contract work. It’s often required in federal systems, defense projects and other areas that have strict rules. These checks don’t just help with rules — they also help build trust that the system is doing what it’s supposed to do.
What is FIPS used for?
FIPS, or Federal Information Processing Standards, are publicly published standards developed by NIST for use by non-military government agencies and their contractors. They ensure interoperability, security and data integrity across government systems. Among these standards, FIPS 140-2 and 140-3 are specifically focused on cryptographic module validation.
FIPS is particularly important for maintaining secure file transfers and data exchanges within or between government entities and regulated industries. These standards guide the secure implementation of encryption protocols used in networking, file transfer and secure communications platforms.
Who needs to be FIPS 140-2 compliant?
FIPS 140-2 is required for U.S. federal agencies and for any group that works with them. This includes defense contractors, law enforcement and other public partners. Many other industries also use it. Healthcare, finance and utilities rely on FIPS when they need to protect sensitive but unclassified data.
FIPS 140-2 will be retired by September 2026. Organizations using it should check with their vendors. They need to make sure systems are moving to FIPS 140-3. Planning ahead helps avoid issues later. It also keeps systems ready for audits and helps maintain trust.
Strengthen encryption and compliance
Evaluate your file transfer system’s cryptographic posture with JSCAPE’s FIPS-compliant capabilities.
Stay ahead of evolving encryption standards
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