A removable drive such as a USB drive or key is provided for connecting to computer devices to provide secure and portable data storage. The drive includes a drive manager adapted to be run by an operating system of the computer device. The drive manager receives a password, generates a random key based on the password, encrypts a user-selected data file in memory of the computer device using the key, and stores the encrypted file in the memory of the removable drive. The drive manager performs the encryption of the data file without corresponding encryption applications being previously loaded on the computer system. The drive manager may include an Advanced Encryption Standard (AES) cryptography algorithm. The drive manager generates a user interface that allows a user to enter passwords, select files for encryption and decryption, and create folders for storing the encrypted files on the removable drive.