Which method is commonly used to enhance the security of sensitive information stored electronically?

Encryption is commonly used to enhance the security of sensitive information stored electronically by converting the original data into an unreadable format, which can only be reverted back to its readable form with the appropriate decryption key. This method protects data from unauthorized access, ensuring that even if the data is intercepted or accessed by an attacker, it remains secure and unintelligible without the corresponding decryption key. As a critical component of information security, encryption helps organizations comply with regulatory requirements and maintain the confidentiality of sensitive information, such as personal identifiable information (PII) and financial records.

The other methods mentioned serve different purposes that do not provide the same level of protection for electronic data. Buffering is related to managing data flow between different components in a computer system, filtering typically refers to controlling access or applying rules to data traffic rather than securing stored information, and shredding is a physical process that applies to the destruction of paper documents rather than electronic data.