Software-based security solutions encrypt the data to protect it from theft. However, a malicious program or a hacker could corrupt the data in order to make it unrecoverable, making the system unusable. Hardware-based security solutions can prevent read and write access to data and hence offer very strong protection against tampering and unauthorized access.

Hardware based security or assisted computer security offers an alternative to software-only computer security. Security tokens such as those using PKCS#11 may be more secure due to the physical access required in order to be compromised. Access is enabled only when the token is connected and correct PIN is entered (see two-factor authentication). However, dongles can be used by anyone who can gain physical access to it. Newer technologies in hardware-based security solves this problem offering fool proof security for data.

Working of hardware-based security: A hardware device allows a user to log in, log out and set different privilege levels by doing manual actions. The device uses biometric technology to prevent malicious users from logging in, logging out, and changing privilege levels. The current state of a user of the device is read by controllers in peripheral devices such as hard disks. Illegal access by a malicious user or a malicious program is interrupted based on the current state of a user by hard disk and DVD controllers making illegal access to data impossible. Hardware-based access control is more secure than protection provided by the operating systems as operating systems are vulnerable to malicious attacks by viruses and hackers. The data on hard disks can be corrupted after a malicious access is obtained. With hardware-based protection, software cannot manipulate the user privilege levels. It is impossible for a hacker or a malicious program to gain access to secure data protected by hardware or perform unauthorized privileged operations. This assumption is broken only if the hardware itself is malicious or contains a backdoor. The hardware protects the operating system image and file system privileges from being tampered. Therefore, a completely secure system can be created using a combination of hardware-based security and secure system administration policies.

Backups: Backups are used to ensure data which is lost can be recovered from another source. It is considered essential to keep a backup of any data in most industries and the process is recommended for any files of importance to a user.