Why should data never appear "in the clear" according to security standards?

The rationale behind why data should never appear "in the clear" aligns with the fundamental principle of protecting sensitive information. When data is "in the clear," it refers to unencrypted data that can be easily accessed by anyone who intercepts it. This vulnerability poses a significant risk as it allows malicious actors to exploit this information for fraudulent activities, such as identity theft, financial fraud, or unauthorized access to sensitive accounts.

Protecting data through encryption and secure transmission methods is essential in safeguarding against these types of threats. Ensuring that data remains encrypted minimizes the potential for its misuse by ensuring that only authorized parties can access or understand the information. Therefore, the emphasis on keeping data secure and minimizing the risk of exposure is rooted in the necessity to protect individuals and organizations from fraud and related security breaches.