It was not long until several executives of large banks persuaded him to develop security systems for the Internet to work. They were worried about the fact that no useful framework for electronic commerce would have been possible at that time without innovation in the computer and network security industry. Following a request from former Wells Fargo Bank president William Zuendt in 1993, Atalla began developing a new Internet security technology, allowing companies to scramble and transmit secure computer files, e-mail, and digital video and audio, over the internet.
As a result of these activities, he founded the company TriStrata Security in 1996. In contrast to most conventional computer security systems at the time, which built walls around a company's entire computer network to protect the information within from thieves or corporate spies, TriStrata took a different approach. Its security system wrapped a secure, encrypted envelope around individual pieces of information (such as a word processing file, a customer database, or e-mail) that can only be opened and deciphered with an electronic permit, allowing companies to control which users have access to this information and the necessary permits. It was considered a new approach to enterprise security at the time.