A system and method for protecting data transmitted across a private network is disclosed. A secure channel is established so that the client computer can securely transmit a password to the server computer. Once the password has been transmitted, future transmissions use the password to encrypt data by the sending computer and decipher the data at the receiving computer. In one embodiment, passwords expire after a certain amount of time and are thereafter renegotiated. In another embodiment, the password is successively modified by a counter value further preventing unauthorized persons from discovering the password used to encrypt the data. By using passwords rather than public-key encryption methods, less system resources are required to maintain data confidentiality. An information handling system securely transmitting data within a private network as well as a computer program product programmed to perform the encryption processing are further disclosed.