Encryption standards are vital for protecting sensitive information online by converting data into unreadable formats that only authorized users can decode. These standards, such as AES (Advanced Encryption Standard) and RSA (Rivest-Shamir-Adleman), ensure that even if data is intercepted, it remains secure from unauthorized access. Encryption protects various types of data, including personal information, payment details, and confidential communications. By implementing robust encryption protocols, organizations can fulfill compliance requirements and enhance overall data security, fostering user trust.