TL;DR: JSON Web Encryption adds confidentiality to token handling by encrypting JWTs and other JOSE objects, which matters when tokens carry claims, scopes, or PII across APIs, partners, and identity systems, according to Raidiam. Encryption does not replace signing or transport security, but it closes a common exposure gap in modern token flows.
Editorial analysis by NHI Mgmt Group, based on content published by Raidiam: “Securing Data with JSON Web Encryption (JWE)”.
Key questions
Q: When should organisations encrypt tokens instead of only signing them?
A: Organisations should encrypt tokens when the payload contains claims, scopes, user attributes, or internal data that would be harmful if exposed to intermediaries, logs, or partner systems.
Q: Why do encrypted tokens matter in API and IAM architectures?
A: Encrypted tokens matter because APIs and identity systems often move sensitive context through multiple trusted and semi-trusted systems.
Q: What breaks when token confidentiality is not in place?
A: When token confidentiality is missing, sensitive claims can be exposed to gateways, logs, support tooling, or partner integrations that were never meant to read them.
Practitioner guidance
- Define which tokens require confidentiality Classify JWTs, request objects, and session-related tokens by the sensitivity of the claims they carry, then reserve encryption for payloads that expose identity attributes, scopes, or internal business logic.
- Separate signing requirements from encryption requirements Use signing to preserve integrity and authenticity, and add JWE when token contents should not be readable by intermediaries, logs, or partner systems.
- Protect private keys as production secrets Store decryption keys in managed key services or hardware-backed stores rather than source trees or project directories, and restrict decryption access to the smallest receiving set.
Bottom line: JWE adds a confidentiality layer to token design that signing alone does not provide, which matters when tokens carry sensitive identity or business data.
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Token confidentiality is now part of access governance, not an optional transport detail. If a token carries claims, scopes, or PII, the security question is not only whether it is authentic but whether every intermediate system can read it. That shifts JWE from an implementation nicety to a governance control for API and IAM teams. The practitioner conclusion is simple: signed tokens are not sufficient when payload disclosure is itself a risk.
A few things that frame the scale:
- Only 44% of developers are reported to follow security best practices for secrets management, exposing a significant developer behaviour gap, according to the State of Secrets in AppSec.
A question worth separating out:
Q: How should teams compare JWE and TLS in token security design?
A: TLS protects data in transit between endpoints, while JWE protects the token payload itself wherever it travels and whoever handles it. They solve different problems, so the question is not which one to use, but whether the token contents need protection beyond the transport layer. In many API and IAM flows, they are complementary.
👉 Read our full editorial: JWE for sensitive tokens: what it changes for API and IAM security