According to CNET, Google is testing encryption for files stored in Drive. Currently, the service does not encrypt files in the cloud, only when they are being transferred by the user.
“Google has started experimenting with file encryption on Google Drive, a privacy protection movement that may contain attempts by the United States and other governments to gain access to users’ stored files.
Two sources told CNET that Mountain View, a California-based company is actively testing to find encryption for files in its cloud file storage and synchronization service. A source familiar with the project said that a small percentage of Google Drive files are encrypted.
Secure encryption in users’ private files means that Google would not be able to disclose the contents of the stored files, even with the NSA presenting a legal order or search warrant. ”
Google did not comment on the CNET report.