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Learning Windows Server 2003 by Jonathan Hassell

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Using the Encrypting File System

Windows 2000 introduced the Encrypting File System (EFS), a way to scramble the contents of documents, other files, and even programs so that they become unreadable by anyone other than the person who encrypted them. Although EFS has merits in environments consisting of corporate desktop computers, the real boon is for laptops: because theft of laptops has been on the rise for almost a decade, there is a real risk in storing sensitive information on these mobile system. If a laptop from a research and development representative were to fall into a competitor’s hands, the cost of that loss would far exceed the retail price of a new laptop; indeed, the damage would be almost immeasurable. So, EFS is definitely an asset.

How does EFS appear to the end user? It’s nearly transparent in operation, though not as much in presentation. When you encrypt a document, Windows doesn’t attempt to hide the document’s presence on the disk. In fact, encrypted documents are outlined in blue with a normal default folder view. The real transparency comes when you open the document. The process goes as follows: from each individual file on a server’s disk, Windows calculates a unique file encryption key. When a user selects to encrypt a file, the file encryption key is encrypted too, using the public key stored on the user’s EFS certificate. (This public key is generated the first time a request to encrypt an object is submitted.) To decrypt a file, the file encryption ...

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