Refactor hooks for better readability

**Description**
Currently handlers lacks proper encryption support.

**Proposed solution**
Add configurable encryption with sensible defaults.

**Priority**: Low/Medium

No files or tests are named. Start by locating the handler and hook entry points, then trace how configuration is currently read and how handlers process data. Done means the required encryption behavior, configurable options, and sensible defaults are explicitly agreed and covered by tests.

Written by the indexing model from the issue text.