Backups & restore points · Encryption and passphrases
Are backups to an external drive encrypted?
Short answer: Yes. Drive and folder backups are encrypted automatically, with no passphrase to remember. The passphrase step appears only for cloud destinations. You restore drive backups through Versions… in Data Backup.
Yes — backups to a drive or folder are encrypted automatically, with nothing for you to set up or remember. That's why Storage Studio doesn't ask for a passphrase when you choose Choose a folder… as the destination.
The passphrase step only appears for cloud destinations, where you hold the key yourself. The files in a drive backup aren't ordinary copies you can browse in Finder; you get them back through Versions… in Data Backup.