Is Encrypting File System (EFS) safe?
I don't consider EFS safe for local user accounts on Windows 2000 computers. An attacker can use the Ntpasswd tool to reset the password of a local account tool, log on as that user, and access the user's encrypted files. However, EFS is immune to such attacks when you use it with Windows NT 4.0 or Active Directory (AD) domain accounts or with Windows XP. Before implementing EFS in your organization, review the Microsoft article "Best Practices for Encrypting File System" (http://support.microsoft.com/default.aspx?scid=kb;en-us;q223316).