Abstract: A system and method to enable a transparent, outboard, proxy secure channel between two endpoints on a Local Area Network (LAN) using front-end network encryption devices are provided. A secure channel provides an encrypted, authenticated communications pathway that protects an otherwise insecure communications network against threats including passive eavesdropping, active modification and insertion, and impersonation. One version provides a fully transparent secure channel between two endpoints which may be unaware of the data protection being applied. An alternate version enables single-ended communications protection between an endpoint transparently protected by a front-end network encryption device and a remote endpoint having compatible, interoperable encryption software. In a single-ended application, the remote endpoint may be unaware that (1.) the other endpoint is not performing the encryption nor that (2.) a front-end network encryption device is performing the encryption on its behalf.