FIPS validated means a cryptographic module has passed formal testing. These tests follow standards from the U.S. government. NIST runs the program that checks if a module meets the rules. The testing happens through the Cryptographic Module Validation Program, also called CMVP. A module is only validated if it passes third-party testing under FIPS 140-2 or FIPS 140-3. This kind of validation proves that the encryption works the right way. It shows the module follows strict rules for protecting sensitive data. Federal agencies require this validation for software and hardware. Other industries use it too, like healthcare and finance. If a module is not validated, it does not count as compliant, even if it uses approved algorithms.

What is FIPS-validated cryptography?

FIPS-validated cryptography involves encryption modules that have passed CMVP testing and received a certificate from NIST. This process offers assurance that the module adheres to federal security standards and can be used in environments requiring high levels of data protection. It also:

  • Confirms a module has met rigorous NIST testing criteria
  • Distinguishes between “FIPS compliant” and truly validated solutions
  • Enables use in government and other regulated sectors
  • Requires evaluation through approved third-party laboratories
  • Supports stronger auditability and procurement standards

A FIPS-validated designation significantly enhances credibility and ensures the cryptographic component meets government and enterprise security expectations.

FIPS security levels — what they mean

FIPS 140-2 and FIPS 140-3 define four security levels for cryptographic modules. These levels help organizations select solutions based on their specific risk environments.

  • Level one: Basic security that typically requires production-grade components
  • Level two: Adds role-based authentication and tamper evidence
  • Level three: Includes identity-based authentication and physical tamper-resistance
  • Level four: Provides the highest level of security, with robust protection against environmental attacks

The higher the level, the stronger the protection against compromise, which allows organizations to match their use case with appropriate security assurance.

How FIPS validation actually happens

FIPS validation is not self-claimed; it is awarded through a formal process that includes extensive documentation, third-party testing and review by NIST. Only after passing all phases is a certificate issued. The validation process:

  • Begins with module design and documentation
  • Undergoes testing through accredited Cryptographic and Security Testing Laboratories (CSTLs)
  • Requires correction of deficiencies found during evaluation
  • Gets reviewed by CMVP, which makes the final determination
  • Get published in the NIST CMVP validation list for public verification

This rigorous approach helps distinguish legitimate, secure modules from unverified or “FIPS-like” implementations.

FIPS validated vs. FIPS compliant

It’s important to distinguish between being FIPS validated and FIPS compliant. Some key differences include:

  • Compliant solutions can fall short of audit or procurement standards
  • FIPS compliant may indicate the use of approved algorithms but without formal validation
  • FIPS validated means a cryptographic module has passed CMVP testing
  • Only validated modules are eligible for official government use
  • Validated modules offer a higher assurance level and recognized certification

For organizations in regulated sectors, FIPS-validated solutions represent the gold standard for cryptographic assurance.

What is a cryptographic module?

Cryptographic modules include the software, firmware or hardware components that execute encryption, decryption and related security operations. They are central to secure data exchange and system authentication.

Encryption and decryption

Encrypt data to ensure confidentiality during storage or transmission.

Hashing algorithms

Generate fixed-length values from input data to verify integrity.

Key exchange and management

Protect keys using secure exchange protocols and lifecycle controls.

FIPS validated FAQs

What are FIPS requirements?

FIPS requirements are security rules created by the U.S. government. They help protect sensitive information. These rules include technical steps and procedures. Standards like FIPS 140-2 and FIPS 140-3 tell developers which encryption methods and tests must be used in software or hardware.

If your organization works with federal data or follows strict regulations, you may need to use FIPS-validated encryption. Meeting these requirements shows that your system follows approved government standards. It also makes your tools ready for federal contracts, audits or use in public agencies. FIPS validation helps prove that the system is secure enough for serious use.

What does it mean for a managed file transfer solution to be FIPS validated?

A FIPS-validated managed file transfer solution has undergone rigorous testing through NIST’s CMVP and has been certified as using cryptographic modules that meet FIPS 140 standards. This certification ensures that encryption used during file transfers adheres to the highest federal benchmarks.

Such validation is especially critical in sectors like government, defense, healthcare and finance, where file transfers often contain sensitive or regulated data. It gives enterprise organizations confidence that their data protection processes align with strict compliance mandates.

Is FIPS validation required for file transfers in regulated industries?

In many regulated fields, the answer is yes. Federal agencies and their contractors must use FIPS-validated cryptographic modules. Other industries, like healthcare and finance, often use FIPS too. They follow it to meet rules under HIPAA, GLBA or other security laws.

FIPS validation is not always required by law, but it still matters. It helps improve an organization’s overall security. It also shows that systems are ready for audits. Some customers and partners will only work with tools that meet federal standards. FIPS can help with that and make the approval process easier.