Using Addonics's new CipherUSB ($29.95, direct) device you can apply hardware-based full-disk encryption to any storage device that connects via USB. It works with flash drives, external hard drives, CD/DVD/Blu-Ray drives?the device type doesn't matter as long as it connects via USB. It's a brilliantly simple solution.
You can use CipherUSB under any operating system that supports USB, but the tiny utility that sets its master password is Windows-specific. You only enter the master password once, so make it a very, very strong password and stash a copy somewhere protected, perhaps a safe deposit box. The only time you might need that password again is if you lose the CipherUSB device. Entering the same password in a replacement CipherUSB will restore access to your encrypted drives.
The first time you connect a device to the computer through the CipherUSB, you'll have to format it. There's no option to encrypt existing content in place. If you later connect the encrypted drive directly to the computer, without the CipherUSB, it will appear to be a blank, unformatted drive.
Using hardware-based, FIPS-certified AES 256-bit encryption, the CipherUSB encrypts all data written to the protected drive and decrypts all data read from the drive. Addonics claims it has no measureable effect on read/write speeds, and indeed I couldn't measure any slowdown.
Advanced Protection
The basic 256-bit AES encryption is considered secure enough to protect Top Secret information. According to Addonics, "It is theoretically impossible to penetrate the encryption of a single CipherUSB." However, it's completely possible to daisy-chain two or more CipherUSB devices for added complexity. Here's an intriguing possibility for shared secrets. If you and a partner each own a CipherUSB and use both to encrypt a drive, neither of you can access the drive's data without cooperation.
Other Avenues
Like Aegis Secure Key ($65 direct, 4.5 stars) and LOK-IT Secure Flash Drive ($76.25 direct, 4 stars), CipherUSB works with any device that support USB-based storage. Unlike the other two products, it protects any number of USB storage devices.
GoldKey Consumer Token ($59 direct, 4 stars) doesn't come with on-board storage, but you can use it to encrypt multiple files, folders, or drives. IronKey Personal S200 ($79 direct, 4 stars) protects its on-board storage using hardware encryption and also comes with password management software and a secure browser.
CipherUSB's low price and simplicity make it a great choice for managing encrypted storage. You can use it to protect anything from a single thumb drive to an office full of removable hard drives. CipherUSB has earned the status of Editors' Choice for hardware-based security, along with Aegis Secure Key and GoldKey Consumer Token.
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