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Windows Server 2008 R2 : Secure Folders and Files (part 1) - Configure the Encrypting File System

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7/7/2011 11:34:46 AM
Files and folders contain data. That data may be innocuous data that you use regularly and that requires little or no protection, or it might be critically sensitive data requiring extensive protection. In each case, you will need to implement a strategy to protect your sensitive data. A strategy for protecting data will include but not be limited to a structured design for permissions, storage, encryption, and auditing.

1. Configure the Encrypting File System

The Encrypting File System (EFS) is a feature of Windows that you can use to encrypt files and folders on your hard drive to provide a secure format of storage. EFS is a core file encryption technology used only on NTFS volumes. An encrypted file cannot be used unless the user has access to the keys required to decrypt the file. The files do not have to be manually encrypted or decrypted each time you use them. They will open and close just like any other file. Once EFS is enabled, the encryption is transparent to the user.

Using EFS is similar to using permissions on NTFS files or folders. However, a user who gets physical access to encrypted files would still be unable to read them because they are stored in an encrypted form.

You can encrypt or decrypt files or folders by setting the encryption property attribute for the file or folder. The encryption property is an attribute that is applied much like the attributes of read-only, compressed, or hidden files or folders, as shown in Figure 1.

To encrypt a file or folder, follow these steps:

  1. Select the file or folder you want to encrypt.

  2. Right-click the file or folder.

  3. Choose Properties.

  4. Click the Advanced button.

  5. Select the Encrypt Contents To Secure Data box.

Figure 1. Advanced Attributes dialog box

It is important to note that the attributes of compression and encryption are mutually exclusive of one another. You cannot do both. If you have a file that is compressed and you decide you want to encrypt it, you must remove the compression bit before the file can be encrypted, and vice versa.

The following are some additional considerations when using EFS:

  • Only files and folders on NTFS volumes can be encrypted. You can use Web Distributed Authoring and Versioning (WebDAV), which also works in NTFS volumes to transfer encrypted files and folders in their encrypted form.

  • Encrypted files and folders are decrypted if you move them to a volume that is not NTFS.

  • Moving unencrypted files or folders into a folder that has been encrypted will result in the encryption of the moved files or folders; however, the reverse is not true. Files or folders that are moved from an encrypted NTFS folder to an unencrypted folder will not automatically be decrypted. Files must be explicitly decrypted.

  • Files marked with the system files attribute and files residing in the system root directory structure cannot be encrypted with EFS.

  • Marking the encryption attribute of a file or folder does not prevent a user with the appropriate NTFS permissions from deleting or listing files or directories if their NTFS permissions allow those functions. Use EFS in conjunction with NTFS permissions.

  • You can encrypt or decrypt files and folders on a remote computer that has been enabled for remote encryption. When you do, the data is transmitted over the network in its decrypted form. Other protocols such as Secure Sockets Layer (SSL) or Internet Protocol Security (IPsec) must be used to encrypt the traffic.

As you would expect, you can also implement EFS through the use of Group Policy. These settings are located in Computer Configuration\Windows Settings\Security Settings\Public Key Policies\Encrypting File System.

Through these settings, you can choose whether you want to allow or deny the use of EFS for your entire network. You can also choose to allow or deny the use of Elliptic Curve Cryptography (ECC) encryption. ECC allows your network to be complaint with Suite B encryption standards. Suite B standards meet the Advanced Encryption Standard (AES) with key sizes of 128 and 256 bits for symmetric encryption, Elliptical Curve Digital Signature Algorithm (ECDSA) for digital signatures, Elliptic Curve Diffie-Hellman (ECDH) for key agreement, and Secure Hash Algorithm (SHA-256 and SHA-384) for message digest.

EFS is a great tool to help you secure files and folders. As you implement an EFS program in your network environment, you can provide access to files and folders while maintaining very good security for those same files and folders.

But what about those system files?

2. Configure BitLocker Drive Encryption

In the previous section, you learned that EFS will not provide encryption to any files marked with the system attribute or files located in the system root directory. So, what do you do with them? How do you secure the system files? The answer is a tool called BitLocker. BitLocker was designed to encrypt the partition on which the operating system files reside. Unlike EFS, which allows the user to pick and choose files and folders for encryption, BitLocker encrypts entire partitions or drives. BitLocker can be used to encrypt the locally attached drives, while a tool called BitLocker To Go can be used to encrypt devices such as USB sticks that may be temporarily attached to the system. If a hacker were to attempt to get at your system files, the files would be encrypted. If your drive were stolen and put into another machine, the data would be inaccessible. BitLocker makes use of a hardware module on the motherboard called a Trusted Platform Module (TPM) chip. BitLocker uses it to seal the keys that are used to unlock the encrypted operating system drive. When you start your operating system, BitLocker requests the key from the TPM chip and then uses it to unlock the drive.

When using a BitLocker-encrypted drive, if you add new files to the drive, they are automatically encrypted. Drives (fixed or removable) can be unlocked with a password or a smart card, or you can set the drive to automatically unlock when you log onto the computer.

BitLocker can be used in conjunction with EFS. We recommend a strategy that maximizes the security needs of your data, while minimizing the impact on the users who will need access to that data.

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