In the SharePoint online, data are encrypted both at rest and in transit.
For at rest, SharePoint online uses Azure Storage Service Encryption (SSE) which uses 256-bit AES encryption. This encryption is applied automatically to all files stored in the SharePoint Online.
For in transit, SharePoint online uses HTTPS (TLS 1.2) encryption. This ensures that the data sent between the client and server is secure and cannot be intercepted by any unauthorized parties.
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