While its possible to move data in this manner securely by using software-based encryption, the simple reality is that many users and employees dont take data security into consideration, or they just forget. The thought is "the data is in my hands, its safe." But, of course, when that flash drive or hard drive gets left behind at the coffee shop, or the bag containing them gets swiped at the airport, this false notion crumbles immediately.

UK-based iStorage is one company that recognizes this issue, and the company has built its entire product line around hardware-based encryption for external storage devices. These are devices that automatically encrypt the data stored on them, completely preventing access to the data unless the correct PIN is physically entered on the device. As long as employees or family members use a device like this for their external data storage, they never need to "think" about encryption since the data is automatically secured as soon as its unplugged from the computer.