Encrypt your iPhone Backups

iPhone backups contain a surprising amount of personal data, from various account and service logins, to fully readable SMS conversations, anyone can easily dig around in the backups locally if they want to. For this reason, it’s a good idea keep these locally stored iPhone backup files encrypted.
How to Encrypt iPhone Backups
This sets encrypts and password protects your iOS backup files, and works the same in Mac OS X or Windows:
- Connect your iPhone to the computer and launch iTunes
- Select the iPhone in the iTunes sidebar, and under the “Summary” tab scroll down to ‘Options’
- Click the checkbox next to “Encrypt iPhone backup” which will bring up a screen to set an encrypted backup password

Do not forget this password! Without it you will not be able to access backed up data. Likewise, you will need to enter the password anytime you restore your iPhone from the backups.
For further securing your iPhone, don’t forget to set an access passcode. You can also take the passcode a step further by activating the “self-destruct” feature of iOS which will automatically erase all data on the device after multiple failed login attempts.
And yes, all of this applies to iPod touch and iPad as well.

This is an *absolute must* enable, it amazes me how many people do not even set passwords for their Macs or iPhones. What if something was stolen? Don’t make it easy for thieves or snoopers, always use passwords and encrypt when you can. There’s just too much data that you undoubtedly want kept private. Think about when the iPhone 5 includes the NFC chip and becomes tied to your bank account, get in the habit now.
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I forgot my password, how can I reset it or set a new password for the encryption backup ?
how to decrupt or remove the encryption?
http://img801.imageshack.us/img801/7233/doubtg.jpg
please see image n my problem.
its disabled, even when i enter the correct username and password.
I have a problem with setting my password for the backup…it won’t accept any pass i typeit just says “The password you entered to protect your iPhone backup file could not be entered. Please try again” Can someone please help?