It occurred to me recently that if someone were to steal a computer there are really 2 things the victim needs to think about: the privacy of their data, and whether or not they'll be able to get their computer back. These goals aren't entirely opposed, but it does require a little bit of work in order to have it both ways.
There are lots of choices available to ensure the privacy of your data. You can use a power-on password to prevent the machine from being booted without the correct password. This is a fairly good trade off between a hassle for you and protection, but it does have some serious flaws. Using a power-on password doesn't actually do anything other than the name implies. The data on the disk is still unencrypted. If someone wants to get at the data, they can simply put the hard drive in another machine and have free range access to anything on the disk. A power-on password will just make the machine less valuable to the average thief, but they won't know that until after they've taken it.
Another option is to leave the machine without a power-on password but instead password protect your account. In this scenario, the computer will boot into the OS, but will not allow anyone to use it without first logging in. The only difference between account passwords and power-on passwords is that it requires the password later. Account passwords have a side benefit in that if you forget your password you can re-install the OS and retain all of the user files from the previous install. Your data isn't safe; someone can put the hard drive into another machine to get access to your information. But it does make the machine slightly less valuable. And as with power-on passwords they won't know until after they've taken it.
These solutions are all privacy theatre; they appear to protect your data when in actuallity your data is still unsafe, just more difficult to access. As any security expert1 will tell you, security through obscurity is not security. The only true way to protect your data is to encrypt it. Most operating systems support some for of full disk encryption, whether its built into the operating system ala Mac OS X Lion, or provided by a 3rd party with PGP. Full disk encryption does what the name implies. It encrypts the entire contents of the disk. If someone was to take the encrypted disk from one computer and put it into another, the contents of the disk would still be inaccessible without a password. This is about your only option in terms of ensuring the privacy of your data.
But this is all for naught if you need your data and your computer gets stolen. It doesn't matter how private your data is if you'll never see it again2. If you've got a backup strategy then at least your data will be safe, but computers aren't cheap and if you're like me, you'd like to get it back3. So what can you do to protect your data and help to ensure that you get your computer back if it gets stolen?
That's a good question, worthy of its own post. Come back next week to find out.