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These days many users are hit by cryptolocker attacks. I usually recommend family and friends to use Windows File history to get decent simple backups.

What I am not sure about is how well Windows File history would handle an attack by a crypto locker virus.

As far as I know a crypto locker virus usually encrypts all your files, changes the name to .encrypted (or similar) and removes the original file.

So if you have a backup of the original file you simply restore it and your good to go.

But as the Windows File History drive is accessible in Windows, is there a risk that the files on the FileHistory drive will also be encrypted?

In the older Windows backup program the entire folder for backups were protected, but I have not been able to find what the case is with File History.

So my question is:

How is the File History folder protected from attacks in the local computer?

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The short answer is no.

The way most randsomware attacks work, anything that is accessible to Windows will be a risk. This is why you should have multiple backups and keep some periodic backups offline.

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