It seems standard to use Disk Utility to create an encrypted disk image. I would like to know how secure this is. I can imagine that the "encrypted" files are not really encrypted at all, and continue to lie on the hard disk in plain, unencrypted form. Are the individual files or file chunks themselves encrypted?
If one is lucky, one can recover deleted files from a hard disk. It might, as far as I know, be just as easy or maybe easier to recover files on an encrypted dmg.
My question is: what are the facts here? And how secure are the files in an encrypted disk images?