The paper discusses the hardware and software security requirements in an embedded device that are involved in the transfer of secure digital data. The paper gives an overview on the security processes like encryption/decryption, key agreement, digital signatures and digital certificates that are used to achieve data protection during data transfer. The paper also discusses the security requirements in the device to prevent possible physical attacks to expose the secure data such as secret keys from the device. The paper also briefs on the security enforced in a device by the use of proprietary security technology and also discusses the security measures taken during the production of the device.