Encrypting File System (EFS) is available in Windows 2000, XP Pro, and Server 2003. It is a built-in certificate-based encryption that guards single files saved on NTFS-formatted partitions. EFS files can only be opened by you or designated recovery agent. Encrypting a file or folder is easy:
- Right Click on the folder you desire to encrypt and choose Properties.
- Click the Advanced button on the General tab and you will get the option.
: EFS encryption and NTFS compression may not work simultaneously. ‘EFS’ is for protecting data on the disk. If you send an EFS file on the network and somebody employs a sniffer to acquire the data packets, the data gets unsecure.