A method and apparatus for secure transparent backup and encryption of data including compression, elimination of redundant information, all working integrated whether data is stored locally or shared in networks. When data is shared in networks, several computers may access encrypted objects simultaneously with the same limitations as for non-encrypted objects. The method and apparatus can automatically and invisible take backups and can easily restore any object to the exact content as it existed for a selected point in time using a snapshot capability in combination with the user interface described that has its focus on making the use very easy for the end user. The invention offers security and performance enhancements when used with tables containing approved hashes for executables and other objects based on company policy and virus scanning. Specific objects may also be easily detected even if they are encrypted.