I am testing Windows 7 file encryption. A test file was encrypted ( I see green colored file name). that file was shared across the network and it still can opened from other station. That green color file name is also viewable from other computer as well. What am I doing wrong? I admit that I don't know the encryption concept yet.
If I moved that file to shared folder of other computers, message appeared asking "Confirm encryption loss". How can I copy that file with encryption?
I know Truecrypt software but I am testing with Windows Encryption.
The NTFS file encryption is using your password hash to encrypt the file. If you connect to the file from another computer you need to supply the user's password, which means the remote computer has the key to decrypt the file.
If you copy the file from the share to the local computer windows will save the key in the remote computer.
The whole idea in the filesystem encryption is that another user cannot use your encrypted files, or someone that get a hold on your hard-drive. But, if you're logged in, all the running applications that has been executed by you or have access to your token (for example, SYSTEM user) can access the file without ever knowing it is encrypted on the disk.