Encrypted files are useless without the right password, which protects sensitive information that falls into the wrong hands. Encryption also has its weaknesses. Passwords can be forgotten, transforming a critical document into a random collection of bits that all the king's men cannot put back together again. Many encryption schemes also do not disguise directory content and file information. In many situations, the mere fact that a file exists may in itself be a release of sensitive information.
Encryption also requires that all users employ the same encryption engine used to scramble the file.
This limitation, however, may be eliminated in the future. The security of encryption is also heavily dependent on the particular scheme employed. Avoid encryption features found in programs whose primary purpose is not security. For example, both Word and WordPerfect allow users to password protect word processing files. The protection afforded by this feature, however, is slight.