This article is also available as a download.

When you think about it, the most valuable thing on your
computer or network is the data you create. After all, that data is the reason
for having the computer and network in the first place–and it’s the bits and
bytes that make up that data that are your first priority when putting
protective strategies in place. Operating systems and applications can always
be reinstalled, but user-created data is unique and if lost, may be irreplaceable.

Some data is also confidential; not only do you not want to
lose it, you don’t want others to even view it without authorization. Exposure
of your social security number, credit card, and bank account information could
subject you to identity theft. Company documents may contain trade secrets, personal
information about employees or clients, or the organization’s financial
records.

Let’s look at some ways to protect your all-important user
data from loss and/or unauthorized access.

#1: Back up early and often

The single most important step in
protecting your data from loss is to back it up regularly. How often should you
back up? That depends–how much data can you afford to lose if your system
crashes completely? A week’s work? A day’s work? An hour’s work?

You can use the backup utility
built into Windows (ntbackup.exe) to perform basic backups. You can use Wizard
Mode to simplify the process of creating and restoring backups or you can
configure the backup settings manually and you can schedule backup jobs to be
performed automatically.

There are also numerous third-party backup programs that can
offer more sophisticated options. Whatever program you use, it’s important to store
a copy of your backup offsite in case of fire, tornado, or other natural
disaster that can destroy your backup tapes or discs along with the original
data.

#2: Use file-level and share-level security

To keep others out of your data,
the first step is to set permissions on the data files and folders. If you have
data in network shares, you can set share permissions to control what user
accounts can and cannot access the files across the network. With Windows
2000/XP, this is done by clicking the Permissions button on the Sharing tab of
the file’s or folder’s properties sheet.

However, these share-level permissions
won’t apply to someone who is using the local computer on which the data is
stored. If you share the computer with someone else, you’ll have to use file-level
permissions (also called NTFS permissions, because they’re available only for
files/folders stored on NTFS-formatted partitions). File-level permissions are
set using the Security tab on the properties sheet and are much more granular
than share-level permissions.

In both cases, you can set permissions for either user
accounts or groups, and you can allow or deny various levels of access from
read-only to full control.

#3: Password-protect documents

Many productivity applications,
such as Microsoft Office applications and Adobe Acrobat, will allow you to set
passwords on individual documents. To open the document, you must enter the
password. To password-protect a document in Microsoft Word 2003, go to Tools |
Options and click the Security tab. You can require a password to open the file
and/or to make changes to it. You can also set the type of encryption to be
used.

Unfortunately, Microsoft’s password
protection is relatively easy to crack. There are programs on the market
designed to recover Office passwords, such as Elcomsoft’s Advanced
Office Password Recovery
(AOPR). This type of password protection,
like a standard (non-deadbolt) lock on a door, will deter casual would-be
intruders but can be fairly easily circumvented by a determined intruder with
the right tools.

You can also use zipping software such as WinZip or PKZip to
compress and encrypt documents.

#4: Use EFS encryption

Windows 2000, XP Pro, and Server
2003 support the Encrypting File System (EFS). You can use this built-in
certificate-based encryption method to protect individual files and folders
stored on NTFS-formatted partitions. Encrypting a file or folder is as easy as selecting
a check box; just click the Advanced button on the General tab of its
properties sheet. Note that you can’t use EFS encryption and NTFS compression
at the same time.

EFS uses a combination of
asymmetric and symmetric encryption, for both security and performance. To
encrypt files with EFS, a user must have an EFS certificate, which can be
issued by a Windows certification authority or self-signed if there is no CA on
the network. EFS files can be opened by the user whose account encrypted them
or by a designated recovery agent. With Windows XP/2003, but not Windows 2000,
you can also designate other user accounts that are authorized to access your
EFS-encrypted files.

Note that EFS is for protecting data on the disk. If you
send an EFS file across the network and someone uses a sniffer to capture the
data packets, they’ll be able to read the data in the files.

#5: Use disk encryption

There are many third-party products
available that will allow you to encrypt an entire disk. Whole disk encryption
locks down the entire contents of a disk drive/partition and is transparent to
the user. Data is automatically encrypted when it’s written to the hard disk
and automatically decrypted before being loaded into memory. Some of these
programs can create invisible containers inside a partition that act like a
hidden disk within a disk. Other users see only the data in the “outer”
disk.

Disk encryption products can be used to encrypt removable
USB drives, flash drives, etc. Some allow creation of a master password along
with secondary passwords with lower rights you can give to other users. Examples
include PGP Whole Disk Encryption and DriveCrypt,
among many others.

#6: Make use of a public key infrastructure

A public key infrastructure (PKI)
is a system for managing public/private key pairs and digital certificates. Because
keys and certificates are issued by a trusted third party (a certification
authority, either an internal one installed on a certificate server on your
network or a public one, such as Verisign), certificate-based security is
stronger.

You can protect data you want to share with someone else by
encrypting it with the public key of its intended recipient, which is available
to anyone. The only person who will be able to decrypt it is the holder of the
private key that corresponds to that public key.

#7: Hide data with steganography

You can use a steganography program
to hide data inside other data. For example, you could hide a text message
within a .JPG graphics file or an MP3 music file, or even inside another text
file (although the latter is difficult because text files don’t contain much
redundant data that can be replaced with the hidden message). Steganography
does not encrypt the message, so it’s often used in conjunction with encryption
software. The data is encrypted first and then hidden inside another file with
the steganography software.

Some steganographic techniques require the exchange of a
secret key and others use public/private key cryptography. A popular example of
steganography software is StegoMagic, a freeware download that will encrypt
messages and hide them in .TXT, .WAV, or .BMP files.

#8: Protect data in transit with IP security

Your data can be captured while it’s
traveling over the network by a hacker with sniffer software (also called
network monitoring or protocol analysis software). To protect your data when
it’s in transit, you can use Internet Protocol Security (IPsec)–but both the
sending and receiving systems have to support it. Windows 2000 and later
Microsoft operating systems have built-in support for IPsec. Applications don’t
have to be aware of IPsec because it operates at a lower level of the
networking model.

Encapsulating Security Payload (ESP) is the protocol IPsec
uses to encrypt data for confidentiality. It can operate in tunnel mode, for
gateway-to-gateway protection, or in transport mode, for end-to-end protection.
To use IPsec in Windows, you have to create an IPsec policy and choose the
authentication method and IP filters it will use. IPsec settings are configured
through the properties sheet for the TCP/IP protocol, on the Options tab of
Advanced TCP/IP Settings.

#9: Secure wireless transmissions

Data that you send over a wireless
network is even more subject to interception than that sent over an Ethernet
network. Hackers don’t need physical access to the network or its devices;
anyone with a wireless-enabled portable computer and a high gain antenna can
capture data and/or get into the network and access data stored there if the
wireless access point isn’t configured securely.

You should send or store data only on wireless networks that
use encryption, preferably Wi-Fi Protected Access (WPA), which is stronger than
Wired Equivalent Protocol (WEP).

#10: Use rights management to retain control

If you need to send data to others
but are worried about protecting it once it leaves your own system, you can use
Windows Rights Management Services (RMS) to control what the recipients are
able to do with it. For instance, you can set rights so that the recipient can read
the Word document you sent but can’t change, copy, or save it. You can prevent
recipients from forwarding e-mail messages you send them and you can even set
documents or messages to expire on a certain date/time so that the recipient
can no longer access them after that time.

To use RMS, you need a Windows Server 2003 server configured
as an RMS server. Users need client software or an Internet Explorer add-in to
access the RMS-protected documents. Users who are assigned rights also need to
download a certificate from the RMS server.