What does the term 'data encryption' mean?

Data encryption refers to the process of converting data into a code or a cipher, making it unreadable to unauthorized users. This transformation ensures that even if the data is intercepted or accessed unlawfully, it remains secure and cannot be understood without the appropriate decryption key or password. Encryption is a critical component of data security, protecting sensitive information from breaches and ensuring compliance with privacy regulations.

In contrast, the other options do not align with the definition of data encryption. Backing up data is focused on creating copies for recovery, categorizing data deals with organizing it for accessibility, and transferring data to the cloud involves moving data to storage over the internet but does not inherently protect that data from unauthorized access.