Does iFolder encrypt files located in my local iFolder directory?

Explanation: No. If you select the Encryption option, iFolder uses your encryption passphrase to encrypt files before they depart your local workstation and to decrypt them after they arrive at any of your workstations. Your data remains encrypted only when it travels across the wire and when it is stored on the iFolder server. This secures your information when it is out of your direct control.
Action: If your computing environment requires the encryption of files on your local workstation, use a third-party solution that addresses local file encryption.