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Problems with EFS encrypted file backup

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I am attempting to create a new File & Folder Backup to external HDD. In, the file level options, I have checked the box for decrypting encrypted files & folders. However, when I run the backup after saving the options, I get the following error on the first encrypted file:

Failed to backup file or folder '.

This happens on every attempt regardless of whether or not I use compression and regardless of whether or not I also check the preserve permissions option as well.

Does anyone know if there is a workaround for this? Also, does anyone know if this would also cause recovery from a disk image to fail? Can I trust the recovery of a disk/partition backup to work if it contains files that were backed up as encrypted? Will the disk/partition recovery work (but the encrypted files will be missing) or will it fail with an error?

As things stand, I do not know if I can trust the backups unless I decrypt all files on my laptop (which I do not want to do).

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Just to clarify my original post, I have no problems when creating a disk/partition image if the file level option to decrypt encrypted files is left unchecked. I also know that :

a) I cannot recover those files individually when I boot up using the rescue dvd.
b) I can recover those files individually if I run True Image via Windows while logged in as the appropriate user.

My question is, If I lose my hard disk and I attempt to restore the disk/partition image to a new one using the rescue media, which of the following statements will be true:

1 The image recovery will fail because it contains some encrypted files which it cannot restore (i.e. I will not be able to recover my system)
2. The image recovery will work and the encrypted files be present when I boot up and log in as the relevant user.
3. The image recovery will work but the encrypted files will not be present because they could not be restored.

If the answer is 3 then will I be able to log into the relevant windows user account, run True Image and then recover the files that way (i.e. as described in point b above)?

Thanks in advance for any helpful responses.

Hello SJH,

due to an issue in the product file-level backup of EFS encrypted files is currently not supported. However, it doesn't affect disk/partition- level backups.

Thus, the second statement in your second posting is correct:

The image recovery will work and the encrypted files be present when I boot up and log in as the relevant user.

Thank you.