Losing files encryption ranging from NTFS to FAT32 or FAT16?

I was wondering if encrypted files created on NTFS formatted drives lose encryption if moved to FAT32 or FAT16 formatted drives?

In most cases, Yes, the file will lose the encryption.  Quoting:

"The encryption file system.
  <>http://TechNet.Microsoft.com/en-us/library/cc700811.aspx >

Problems inadvertently by improper use

Several problems can cause problems when using EFS. First of all, when it is not being used, sensitive files can be unintentionally exposed. In many cases, this is due to incorrect or weak security policies and a failure to understand the EFS. The problem is made all the worse because users think their data are secure and can therefore do not follow usual precautionary methods. This can occur in several scenarios:

  • If, for example, users copy files encrypted to FAT volumes, the files will be decrypted and therefore is more protected. Because the user has the right to decrypt the files that they encrypted, the file is decrypted and stored in clear text on the FAT volume. Windows 2000 gives no warning when this happens, but Windows XP and Windows Server 2003 offer a caveat.
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Tags: Windows

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