For Pogoplug, business is booming — it's garnered close to 1 million paid subscribers in its first year — and Putterman says the company is anxious to accommodate concerned clients. And this month, Pogoplug launched a $49 software package called Safeplug that prevents third parties, from the NSA to Google, from learning about a user's location or browsing habits.
But many warn that encryption offers a false sense of security.
"The fundamental designers of cryptography are in an arms race right now, but there are a series of weaknesses and missing oversights that have nothing to do with encryption that leave people vulnerable," says Patrick Peterson, CEO of Silicon Valley-based email security firm Agari. And many that do work, bog down or freeze computers, forcing "a trade-off between security and convenience," he says.