When there is a need to store or transmit sensitive data, use strong, up-to-date cryptographic algorithms to encrypt that data. Select a well-vetted algorithm that is currently considered to be strong by experts in the field, and use well-tested implementations. As with all cryptographic mechanisms, the source code should be available for analysis.
For example, US government systems require FIPS 140-2 certification.
Do not develop custom or private cryptographic algorithms. They will likely be exposed to attacks that are well-understood by cryptographers. Reverse engineering techniques are mature. If the algorithm can be compromised if attackers find out how it works, then it is especially weak.
Periodically ensure that the cryptography has not become obsolete. Some older algorithms, once thought to require a billion years of computing time, can now be broken in days or hours. This includes MD4, MD5, SHA1, DES, and other algorithms that were once regarded as strong. [REF-267]