Hardware Security Module (HSM)
Overview
A Hardware Security Module (HSM) is a dedicated physical device designed to safeguard and manage cryptographic keys, ensuring secure encryption, decryption, and digital signing operations. Unlike general-purpose hardware, HSMs provide tamper-resistant environments that protect sensitive keys from theft, misuse, or exposure. They are widely used in securing payment systems, authentication services, and digital identity infrastructures.For banks, fintechs, payment processors, cloud providers, and government agencies, HSMs are critical to maintaining trust in digital transactions and complying with security standards such as PCI DSS, GDPR, and FIPS 140-2/3. Typical use cases include securing payment card data, generating and storing private keys for PKI (Public Key Infrastructure), protecting SSL/TLS certificates, and enabling digital signing. By offloading cryptographic operations to HSMs, organizations enhance performance, resilience, and regulatory compliance while reducing the risk of key compromise.
Stay ahead of risk with Signzy
Explore tools that help you onboard, monitor, and verify with confidence
Biometric Verification
Authenticate users with facial, fingerprint, and liveness biometrics powered by AI to prevent identity spoofing and fraud.
One Touch KYC
Launch global KYC flows with built-in document OCR, liveness checks, deepfake detection, and AML, all through a single, customizable dashboard.
Database Verification
Instantly verify user information by connecting to trusted databases across jurisdictions for accurate, compliant, and faster onboarding.
Related Terms
FAQ
What is an HSM used for?
To securely generate, store, and manage cryptographic keys.
Why is it important?
It protects sensitive data and meets security compliance standards.
Who uses HSMs?
Banks, payment processors, and governments.
What regulations require HSMs?
PCI-DSS, banking standards, and data protection laws.