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Hide Passwords in Encrypted Drive - FBI Proof Security

May 17, 2012
Hide Passwords in Encrypted Drive - FBI Proof Security

Protecting Your Digital Life with Encryption

Tools for data encryption are available not only to safeguard your personal information but also to empower a sense of digital security. This guide will demonstrate how to utilize a portable USB drive to securely store your passwords within an encrypted virtual disk concealed inside a file.

Historically, advanced cryptographic methods were sometimes characterized as potentially devastating technologies due to concerns about their power. While continually evolving challenges exist in maintaining robust security, encryption software, such as the one detailed below, is easily accessible, often free of charge, and capable of providing a very high degree of protection when implemented correctly.

The Power of Encryption: A Real-World Example

The effectiveness of these tools isn't merely theoretical. Consider Operation Satyagraha, a case involving Daniel Dantas, a money launderer. He successfully used similar encryption methods to prevent the FBI from accessing his data for over a year.

This illustrates the potential for individuals to leverage encryption to protect their sensitive information from unauthorized access.

Building Your Encrypted Password Safe

Creating a secure password vault using a portable USB drive and an encrypted virtual disk is a practical step towards enhancing your digital privacy. The following steps will guide you through the process.

Remember, proper implementation is key to achieving a truly secure system. Take the time to understand the tools and techniques involved to maximize your protection.

  • Strong Passwords: Utilize complex and unique passwords for your encrypted disk and individual accounts.
  • Regular Backups: Create regular backups of your encrypted data to prevent data loss.
  • Software Updates: Keep your encryption software updated to benefit from the latest security patches.

Step 1: Acquiring a Dependable USB Drive

Many tech enthusiasts have experienced the failure of USB flash drives. Inexpensive, lower-cost drives may lack the durability required for storing a secure repository of sensitive passwords.

Therefore, investing in a more robust drive is advisable. While How-to Geek does not specifically recommend any particular brand, the author has consistently found the Lacie Iamakey series to be reliable.

Durability and Data Security

These drives have been highlighted by Lifehacker for their resilience and ability to safeguard data even under demanding conditions.

Ultimately, the choice of brand rests with the user; select a drive that inspires confidence in its ability to protect your crucial online credentials. Consider the author’s suggestion with appropriate discretion.

Step 2: Creating an Encrypted Drive or File with Truecrypt

Numerous software solutions are available for file encryption, yet Truecrypt remains a remarkably robust option. We will focus on two key capabilities: the ability to encrypt hidden files and the functionality to operate Truecrypt as a portable application. Both features are essential if you plan to utilize your encrypted password key on systems beyond your primary computer.

  • Download Truecrypt

We have previously published comprehensive guides detailing Truecrypt usage; therefore, we won’t revisit every detail today. This section will provide a basic walkthrough of installing a portable version of TrueCrypt onto your USB drive. Begin by launching the TrueCrypt installer and selecting the "Extract" option to install it directly onto the USB drive.

Alternatively, you can consult our earlier guides for alternative methods of configuring your secure drive.

  • The How To Geek Guide to Getting Started With TrueCrypt
  • The HTG Guide to Hiding Your Data in a TrueCrypt Hidden Volume

TrueCrypt cannot be executed directly as a portable EXE file without specific permissions. This implies that administrator privileges on a machine are required to use it in portable mode. If this is acceptable, proceed to the next step by clicking "yes." Otherwise, your encrypted drive will be restricted to machines with a fully installed TrueCrypt version, effectively linking it to your home PC. For this example, we will extract the files to the USB drive.

Extract the TrueCrypt files into any desired folder on the disk.

Locate the TrueCrypt.exe file on your USB drive and execute it. You may be prompted to grant administrator permissions to initiate the program.

With TrueCrypt running, select "Create New Volume."

We will be establishing a volume concealed within a file. As previously covered in detail, we will keep this explanation concise. For a more in-depth exploration of creating a hidden volume with TrueCrypt—including nested hidden volumes—refer to our older article on hidden TrueCrypt volumes.

TrueCrypt will prompt you to choose a file to serve as the container for your hidden volume. Select an empty, unremarkable file. Do not use any file containing important data, as its contents will be overwritten by your encrypted volume during the process.

After selecting your volume file, click "Next" to continue.

TrueCrypt supports a variety of Encryption Algorithms; however, the default setting is generally sufficient. You can research these algorithms if desired, or simply utilize the default AES encryption.

You will now specify the size of your virtual disk. Avoid setting the size too large, as it might attract unwanted attention. Conversely, ensure it is large enough to accommodate the portable application.

Once completed, enter a password or passphrase, and optionally add keyfiles. Your password should be memorable yet secure enough to resist brute-force cracking attempts.

TrueCrypt (and KeePass as well) allows the use of virtually any file as part of the password authentication process. This can add an additional layer of security to your hidden volume. Exercise caution when selecting keyfiles, as any alteration to the file’s contents may render it unusable, potentially leading to data loss. Once you have selected (or chosen not to use) keyfiles, click "OK," then "Next" on the "Outer Volume" screen.

Click "Format" when you are satisfied with the random data generated by your mouse movements.

A final warning—you are about to overwrite the selected file. Confirm that you are not using a file you intend to preserve!

You can now mount your "outer volume" on this screen and proceed to create a "hidden volume" if desired.

This process is relatively straightforward and can provide an additional layer of security to your encryption scheme. However, for the purpose of this demonstration, we will bypass this step and mount the drive to install KeePass.

Mounting the Hidden Volume and Installing KeePass Portable

With TrueCrypt running, the hidden volume can now be accessed by utilizing your password and any associated keyfile(s). Upon successful authentication, the virtual disk will be mounted and accessible for use.

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As you proceed, it will be observed that the newly mounted virtual disk initially appears empty. This is expected behavior for a hidden volume.

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Installing KeePass for Enhanced Security

If desired, KeePass Portable can be downloaded for use directly on this new USB disk. While the standard KeePass version is also available, the portable edition offers convenient installation on a USB drive without requiring a traditional installation process.

  • Obtain KeePass Portable.
  • Alternatively, download the standard version of KeePass.
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Initiate the installation by double-clicking the installer file. This will place the portable application directly onto the currently mounted virtual disk.

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In this instance, the encrypted disk was assigned the drive letter "G:". Consequently, KeePassPortable is installed within that directory.

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KeePass is designed to be a user-friendly application. It facilitates the generation and secure storage of robust passwords, employing the strongest encryption methods available. While passphrases are increasingly recommended, KeePass accommodates both passwords and passphrases for convenient recall when accessing your accounts.

After installing the portable application, launch it and choose the option to create a new Password Database file. Similar to TrueCrypt, utilizing both a password and a keyfile is advisable for enhanced security. Remember to select a keyfile that remains stable, as a changing keyfile could result in permanent loss of access to your password safe.

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A detailed exploration of KeePass’s features is beyond the scope of this guide, as its core functionality has remained largely unchanged over time. However, once your password database is created, save it to the encrypted drive (G:/ in our example) to ensure its confidentiality.

For a more comprehensive guide to using KeePass, refer to our previous article, which provides essential information and helpful tips.

  • Learn how to Securely Store Your Passwords with KeePass.
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Securing Your Passwords: Protection Even Against Advanced Threats

Having secured your passwords within an encrypted vault, you can now be confident in their protection against nearly all potential unauthorized access attempts.

What further applications can you envision for your newly acquired cryptographic capabilities? The storage of confidential and private files becomes a viable option, as does the installation of portable applications within this concealed virtual disk.

Expanding the Use of Encryption

Consider utilizing this method for safeguarding a wide range of sensitive data. A hidden virtual disk provides a secure environment for any information you wish to keep private.

We encourage you to share your experiences with TrueCrypt, or to directly communicate your feedback and ideas to ericgoodnight@howtogeek.com.

TrueCrypt offers a robust solution for data security, empowering users to control access to their digital lives.

Image Sources: "Anonymity and the Internet" by Stian Eikeland, licensed under Creative Commons. "Spy" by sewing punzie, also licensed under Creative Commons.

These images illustrate the importance of digital privacy and the tools available to enhance it.

Encryption is a powerful tool for protecting your information in an increasingly interconnected world.

#encrypted drive#password protection#data security#FBI#hide passwords#encryption