What is the Federal Information Processing Standards (FIPS) 140-2?

The Federal Information Processing Standards (FIPS) 140-2 is a U.S. government security standard that specifies requirements for cryptographic modules used to protect sensitive data. Published by the National Institute of Standards and Technology (NIST) in 2001, FIPS 140-2 established a framework for evaluating cryptographic hardware and software solutions used by federal agencies and government contractors. 

FIPS 140-2 defined four security levels (1–4), with increasing levels of protection for cryptographic modules based on the sensitivity of the information being secured. These levels covered various security aspects, including physical security, key management, authentication, and cryptographic algorithm strength.

Many industries beyond the government, such as finance, healthcare, and defense, required FIPS 140-2 compliance to ensure strong encryption and data protection. While FIPS 140-2 was widely adopted, it has now been superseded by FIPS 140-3, the latest version of the standard.