Encrypting backup jobs with Veeam is pretty straightforward. You create a passphrase on the Veeam Server and it uses its technology to encrypt your backups for you.
Enable configuration backup encryption: Main Menu – Config Backup – Encrypt – Enter your password.
Go into jobs and right click properties – Storage – Advanced – Storage – Check the box to use encryption.
That’s literally all you have to do!
The backup job processing with encryption enabled includes the following steps:
You enable encryption for a backup job and specify a password.
Veeam Backup & Replication generates the necessary keys to protect backup data.
Veeam Backup & Replication encrypts data blocks on the backup proxy, either the dedicated or default one, and transfers them to the backup repository already encrypted.
On the backup repository, encrypted data blocks are stored to a resulting backup file.
Restore of an encrypted backup file includes the following steps:
You import a backup file and define a password to decrypt the backup file. If the password has changed once or several times, you need to specify the password in the following manner:
If you import an incremental backup file, you need to specify the latest password that was used to encrypt files in the backup chain.
If you import a full backup file, you need to specify the whole set of passwords that were used to encrypt files in the backup chain.
Veeam Backup & Replication uses the provided password(s) to generate user key(s) and unlock the subsequent keys for backup file decryption.
Veeam Backup & Replication retrieves data blocks from the backup file, sends them to the source side and decrypts them on the backup proxy, either the dedicated or default one.
A full walk through scenario: https://helpcenter.veeam.com/evaluation/backup/hyperv/en/em_restore_no_password.html