REPRINTED FROM SC MAGAZINE SEPTEMBER 2001
nated for automatic (‘on-the-fly’) treatment. In
VME2000 is a suite designed to secure data (pri-
marily at desktop level), featuring a technology
that Meganet calls virtual matrix encryption
(VME). Meganet has in the past few years set chal-
lenges to all who would seek to break VME and
interpret a hidden message. To date VME has re-
mained secure in the face of the hackers.
The product sits typically on a desktop PC as
modules running on a Windows platform – Win-
dows 95 (second), Windows 98, NT, ME and 2000
are all capable of supporting VME2000. Through
encryption services this suite protects data at an
individual station from unintentional disclosure
to others through theft or hacking. It is aimed to
provide local physical security just as encryption
on the ‘Net provides security during transmission.
It is entirely apart from any other security mea-
sures such as firewalls, and can be made to all in-
tents seamless with normal local operation.
VME centers on a symmetric encryption al-
gorithm with ten keys. Its central key is a full mil-
lion bits long, and expert testimonials proclaim
that to break the code would be daunting indeed.
In fact the innovative method employed encrypts
not the data being subjected to the algorithm but
pointers to portions of the data. Even if all the
keys are compromised, the data is still unavail-
able in clear text. The principal key (the one as
long as one million bits) is not held alongside the
encrypted document, but re-created when de-
cryption is desired.
A virtual matrix, infinite in extent, is the re-
source by which encryption is performed. All pos-
sible characters are in the matrix, each in an infi-
nite number of positions. A character is encrypted
first by finding any one of its infinite instances
within the matrix, and substituting this ‘pointer’
for the character within encrypted text. Even with
the same matrix and all the same keys, identical
characters may be substituted with different point-
ers. VME2000 employs other standard engines
such as 40-bit, DES and triple-DES.
VME2000 consists of several independent
modules. CipherLock (now available on Windows
NT or 2000) offers strong access control and trans-
parent immediate encryption. Users of a system
may be equipped with tokens (typically USB to-
kens, or smartcards) that combine user identifi-
cation with a secure password (encrypted within
the system). Programs, database access or resource
VME 2000
by Wilf Hey
Supplier: Meganet Corporation
Price: from US$100
Contact: (800) 634-2638, (818) 990-9292
sales@meganet.com
www.meganet.com
FOR Seamless incorporation of encryption ser vices into
Windows makes this product’s operation ver y easy in the
few places where it is not automatic.
AGAINST It is impossible to retrieve a forgotten key,
even under dire emergencies. Laws may conceivably
be framed in some countries that prevent such a
product being used.
VERDICT An excellent incorporation of top-notch security
through encryption into the desktop.
Features ★★★★★
Ease of Use ★★★★✩
Performance ★★★★★
Documentation ★★★★★
Support ★★★★✩
Value for Money ★★★★★
Overall Rating ★★★★★
use can be restricted to authorized users who sup-
ply their token. Alternatively a user ID and pass-
word may be submitted when access is challenged.
IDs and relevant passwords (securely encrypted)
are stored in a database, for which an editor is
supplied. Thus the administrator can quickly
modify access rights related to each user.
Alongside this main function, temporary files
and other components are ‘shredded’ to safeguard
the system against aggressive hacking or sniffing.
For controlled corporate environments’ token-
related passwords (though not for VME itself)
there is a token/key recovery mechanism. With
CipherLock in force, users need not fear that their
computer may be used to compromise data secu-
rity; when they leave the machine, any subsequent
user is challenged anew. Folders may be nomi-
Contact information:
Meganet Corporation
16133 Ventura Blvd., Suite 640
Encino, CA 91436
(818)-990-9292
Fax: (818)-990-2906
© Copyright West Coast Publishing 2001
such folders all files will be kept encrypted. When
any of these files is used (for example loaded into
Word, or printed) it is decrypted for that purpose.
Files copied into such folders are automatically
encrypted in the process, and files within the fold-
ers are automatically decrypted as they are cop-
ied to elsewhere.
CipherFile is a component of VME2000 that
encrypts (via VME or other user selected engines)
selected files or whole folders (directories). A pass-
word is required that must be identical for en-
cryption and decryption. Passwords are stored
(themselves encrypted) and maintained in a
‘keybook,’ and a Manager routine is supplied to
add, delete or change entries in the keybook.
CipherFile also allows users to create self-decrypt-
ing files that may be sent to others who do not
have VME2000.
CipherText is a wonderfully simple routine
that enables the secure encryption of parts of a
document. The user can move the mouse to
specify the limits of encryption, and then a
simple ‘CTRL-CC’ will take the selected text and
encrypt it with a prearranged key. Note that if
this document is exported to another person
or machine, or sent as email, the recipient will
need to know the password originally used to
encrypt those portions of the data. A small ex-
ecutable file is supplied that may be distributed
freely to any recipients of email in which
VME2000 encryption is deployed. This will per-
mit the recipient of a partially-encrypted docu-
ment to deal with the email, but only when the
same password is used. It should be noted that
CipherText is aware of . RTF (rich text format),
and will encrypt only the actual text within
the .RTF document, leaving the control se-
quences unaltered. The net effect is that be-
fore decryption, displaying the .RTF will dem-
onstrate its format (including color and font)
correctly. (There is a problem with tables in
encrypted . RTF files: it is advisable to encrypt
the whole of a table rather than one or more
entries within the table.)
VME2000 is direct to install, makes eco-
nomic use of disk space, and will be up and
running on a station readily. It makes intelli-
gent use of Windows features, and optional
encryption components may be activated sim-
ply by clicking on a distinctive symbol in the
Windows tray. On-demand encryption or file-
shredding may also be activated by clicking on
the file or folder.
The encryption algorithm is, by all accounts,
unparal leled in power. The integrat ion of
VME2000 into the Windows environment is
thorough and well planned. T he
documentation supplied (a little wire-bound
manual) is peerless. The installation process is
easy, quick and painless. However, it must be
noted that this sort of e ncr yption s uite,
consisting of many parts and affecting many
quite distinct operations, requires the intelligent
attention of users. A training regime for all users
is a must – but the rewards in terms of added
security are great.