FIPS 140-2 is a U.S. government standard that specifies security requirements for cryptographic modules. It ensures that these modules, which are used to protect sensitive information, meet certain security levels. The standard is crucial for organizations that handle federal data, as it helps ensure the integrity and confidentiality of the information being processed. The standard outlines four levels of security, ranging from basic to high, depending on the sensitivity of the data. Organizations must undergo rigorous testing and validation to achieve FIPS 140-2 compliance, which helps build trust in their cryptographic systems and enhances overall data security.