Data security has been on my mind lately, mostly after learning that approximately 700,000 laptops are stolen in the US per year. Add the armies of desktops stolen, the backup tapes lost, and the system compromises that occur, and the situation starts to look pretty grim for data security.
How secure is your data?
If someone stole your desktop, or snatched your laptop from under you at a coffee shop, what confidential information could they gain?
While most thieves aren't of the capacity or motivation to crack the syskey or circumvent NTFS permissions (which is as easy as booting up with a knoppix disc. File ACLs only matter if the expected host operating system is in charge), your response should be to assume that they do, and that they are now reading all of your documents, looking at all of your shortcuts and form entry values, browsing your Outlook notes of account numbers and passwords, and are playing with your tax returns.
The real-world cost of such a compromise can be extraordinary. Losing an expensive piece of equipment can be annoying, but it pales compared to the wholesale loss of data privacy.
Do you use EFS (more information here)? Do you have a Data Recovery key with the private key stored offline in a protected location? Do you know what syskey does? Are you aware of the upcoming Secure Startup (which basically is whole volume encryption)?
Are you comfortable enough with your procedures that the physical loss of a computer to theft would be nothing more than a financial expense and setup hassle, with marginal or no data exposure?