FIPS stands for Federal Information Processing Standard, which is a set of federal security standards applicable to encryption measures used to protect sensitive data. FIPS compliance means an organization adheres to the various data security and computer system standards outlined in the Federal Information Processing Standards (FIPS) . FIPS 140-2 is a U.S. government computer security standard used to approve cryptographic modules produced by private sector vendors who seek to have their products certified for use in government departments and regulated industries that collect, store, transfer, share and disseminate sensitive but unclassified information. To be FIPS compliant, a product must adhere to rigid standards, pass rigorous testing, and be certified by NIST. FIPS compliance is required for organizations that work with federal government entities that collect, store, transfer, share and disseminate sensitive but unclassified information. FIPS compliance is also recognized around the world as one of the best ways to ensure cryptographic modules are secure.