Computerworld.com has posted this article on a hole in USB encryption. The AES encryption remains secure, but the routine that determines if the password has been entered correctly can be bypassed. Manufacturers have issued updates for the software. Check your drive now.
Pssst. Your Flash Drive Isn't Secure
Pssst. Your Flash Drive Isn't Secure
SanDisk Corp. and Verbatim Corp. have joined Kingston Technology Inc. in warning customers about a potential security threat posed by a flaw in the hardware-based AES 256-bit encryption on their USB flash drives.
The hole could allow unauthorized access to encrypted data on a USB flash drive by circumventing the password authorization software on a host computer.