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Major security issue

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I performed a test backing up an encrypted file (with TIH) on one computer on a small home network, with the setting to: Preserve file security settings in backups.

I restored this file to a second computer on that network, and the file showed up as encrypted on the second computer, but I was able to open the file on that 2nd computer.

Should that 2nd computer NOT be able to open the file? (When I try to open this shared file from the 2nd computer under windows, windows will not open it since it was encrypted on the 1st computer. The certificates are not the same.)

It seems to me that TIH backs up the files un-encrypted, and then just encrypts it again on the 2nd computer after restoring it (using the certificates of the 2nd computer).

I think this is a major security breech with the software.

Am I looking at this the wrong way? One should not be able to open encrypted files unless the decrypting computer has the same certificate as the original computer.

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It looks like a windows issue. If you transmit an encrypted file over the network, the file is not encrypted. It can be reencrypted on the target computer if the target folder is set for encryption.

http://technet.microsoft.com/en-us/library/cc700811.aspx

"EFS-encrypted files don't remain encrypted during transport if saved to or opened from a folder on a remote server. The file is decrypted, traverses the network in plaintext, and, if saved to a folder on the local drive that's marked for encryption, is encrypted locally. EFS-encrypted files can remain encrypted while traversing the network if they're being saved to a Web folder using WebDAV. This method of remote storage isn't available for Windows 2000."