A USB drive that stores encrypted data. The encryption may be performed by third-party encryption software or the software that comes with the drive. In either case, the software is configured to encrypt the data before writing to the drive and decrypt after reading.
A more secure approach is to embed the encryption algorithm in a chip within the drive itself, in which case encryption is mandatory for all data on the drive and cannot be disabled. In addition, hardware encryption is much faster than software-based encryption. See USB drive
With capacities up to 256GB, Kingston Technology's IronKey drives are physically hardened, tamper proof and FIPS 140-2 Level 3 compliant. They prevent files from being copied to another computer where there is no rush to break the code. The drive's chip generates the keys, maintains the retry count and performs encryption/decryption. If the wrong password is entered too many times, it self destructs. See FIPS 140-2
. (Image courtesy of Kingston Technology Corporation, www.kingston.com)