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The only approved encryption method for iOS devices at this time is the built-in whole disk encryption that is provided with iOS 4 running on a supported device combined , in combination with data protectionhttp://support.apple.com/kb/HT4175. Data protection allows the hardware encryption keys to be protected with the user's passcode. Without this, the encryption could be defeated with a simple jailbreak.
To verify that data protection is enabled:
1. Tap Settings.
2. Tap General.
3. Tap Passcode.
4. "Data protection is enabled" should be displayed at the bottom of the screen.
If data protection is not enabled, enable it by setting a passcode on the device.
Note: if the device originally shipped with iOS 3 (e.g. the iPhone 3GS, iPad, and iPod Touch), this feature will not be available until the device is restored after upgrading to iOS 4. This feature is not available on older devices, such as the iPhone 3G and earlier models, at all, as they do not support hardware encryption.
More information regarding this feature is available on Apple's site at iOS 4: Understanding data protection.
It is strongly advised that, in addition to data protection, all iOS users read the Apple iOS Hardening Checklist and follow all of the recommendations therein.
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