FIPS 140-3 builds upon the foundation of FIPS 140-2, updating it for today’s digital world. It aligns with international standards (ISO/IEC 19790:2012) and introduces stricter requirements for modern encryption technologies, especially those used in cloud, mobile, and software-driven environments.

This newer version reflects the evolution of cybersecurity; it not only tests hardware encryption devices anymore but also ensures that virtual and cloud-based cryptographic modules are equally robust. In the financial sector, for example, FIPS 140-3 validation supports secure online banking platforms that rely heavily on encrypted APIs. In defense, it’s used to verify that communication systems and portable devices maintain encryption integrity in field operations. By adopting FIPS 140-3, organizations signal that their systems are prepared for the next generation of security and compliance challenges.