TrueCrypt is an open source, on the fly encryption tool. It supports various encryption algorithms. It can also essentially hide all of your data once it has been encrypted so no one can even tell that you have encrypted data. It is available for Windows and Linux.
TrueCrypt does real-time encryption, meaning that as you work with the data it is immediately encrypted/decrypted for your use. It actually creates a virtual filesystem within a file or on a partition. In practical terms, this means, in windows, that you end up with a drive letter under which all of the encrypted files reside. When mounted, it is accessible just as any other drive is and you can do whatever you want with it. Once unmounted, not only can you not access it, but you can’t even tell what it is. The encrypted file/partition should look pretty much random and it isn’t obvious what it actually is. In the case of a file, it can be named to anything you like, so it can essentially pose as a “normal” file type and be hidden anywhere (you just have to remember where it is). On top of that, you can create a hidden volume within a TrueCrypt volume. A hidden volume is a second TrueCrypt volume that resides within another. The fun part is that it is impossible to tell whether or not a hidden volume exists since both the hidden volume and the one in which it is contained consist of random data. The idea with all of this is that that even if someone obtains/forces you to give them your password, you can still have things be secured.
It supports various algorithms. It can use the government standard AES-256, AES candidate Serpent, the older Tripple-DES, and others as well. It can even combine algorithms (using one after another). When you create a volume, it even lets you run benchmarks between the different algorithms to help you decide which one to use (generally, more secure algorithms are slower).
You can also use a keyfile for the encryption. You specify a file when you create the volume, and then in order to decrypt it, not only do you need the password, but you need to provide the file as well.
It will let you setup hotkeys for various things to perform tasks quickly. For instance, you could setup one to unmount all volumes.
There’s even a traveller mode that allows the program to be run without installing it.
On top of all of this, it’s open source. For security reasons, encryption software is best off being open source, but even if you’re not into the whole thing it does at least mean that you don’t have to shell out any cash to use it.
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