• You'll need a key to unlock the secure data within an encrypted file.closed and opened lock image by AndreyPS from Fotolia.com
  
  In "always online" computing environments, the topic of file encryption is becoming increasingly important. In addition, security concerns are rising due to an increase in information transfers over computer networks. File encryption is one way to keep data safe under these circumstances. Encryption essentially locks your files and transforms them into secure data, assuring they will only open with the correct key. This keeps others from opening and reading your files without your consent.
  
  

Whole Disk Encryption

• Encrypting the contents of an entire physical disk or volume is called "whole disk encryption." As the name suggests, this method will protect all your hard drive data. Encrypting your hard drive won't protect everything, however. For example, you could still send unsecured information via email.
  
  

Single-User File Encryption

• The single-file encryption process is suitable for use with emails, provided the receiver has a way of decrypting--or decoding--them. Single-user file encryption also gives you the option of securing a single file on your hard drive. Well-known applications often feature single-file encryption capabilities, which call for less training than other approaches. This method is popular because the use of application-based encryption makes it easier to encode and decode shared documents.
  
  

Multi-User File Encryption

• Multi-user file encryption is more complex than single-user. When multiple users access encrypted files, they must all run the same software to decode them. If their configurations vary, they may unknowingly leave files unencrypted, exposing important information to unauthorized viewers.
  
  

Database-Level Encryption

• Encrypting databases may take place before data is entered. This method of encryption can rely on third-party software. Some databases, however, have built-in encryption functions.