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Create Encrypted Folders for Sensitive Files

It is important to put files into an encrypted folder rather than individually encrypting files. When you encrypt a file, EFS saves the file to a temp file and then overwrites the original file with the encrypted version. This leaves a clear-text version of the file on the hard drive that a hacker can read. When you encrypt a folder the create files in that folder, no temporary files are created.

When users create new files in an encrypted folder, the files are encrypted with each individual user's EFS key. Multiple users passing around the same laptop will not be able to see each other's files in the encrypted folder. The DRA will be capable of recovering all of them, though, if that is required.

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