TrueCrypt is open source software that provides file and drive encryption. Their website claims that cracking the password "could take thousands or millions of years." The program enables a user to create hidden volumes, hidden operating systems, use pre-boot authentication, and virtual volumes hidden inside of decoy files (like a Word document or image file).
I recently starting using TrueCrypt because I felt uncomfortable keeping a file backup on an external hard drive without some sort of security. My drive now has an unencrypted partition as well as a hidden partition only accessible by the software with the correct password. Once the partition is mounted, it functions just like any other portable drive. File access may be slightly slower than an unencrypted drive, but I was able to copy files at about 25 MBps.
In investigations, knowledge of the use of TrueCrypt can be very important. If a hidden, encrypted volume is already mounted on a computer, the files may be accessible on the scene. Once the computer is shutdown, however, they will only be accessible with the password. Whether password disclosure can be compelled is an ongoing debate. Compare In re Grand Jury Subpoena (Boucher), 2009 U.S. Dist. LEXIS 13006 (D. Ver. 2009), with United States v. Kirschner, 2010 U.S. Dist. LEXIS 30603 (E.D. Mich. 2010).
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