There have been lots of stories about the flaws found in some encrypted flash drives and hard drives recently. This means that the data many thought was safe is not. If you are in the market for a new flash drive with encryption, the MXP Bio Encrypted USB drive may be it.
The drive offers hardware encryption of all data stored on it with AES-256 CBC hardware encryption. The drive also has a malware-proof mode to protect it against attacks. The most interesting part is that the drive can be configured for 1, 2, or 3 factor authentication.
The authentication process includes biometrics and digital identity with PKI tokes such as the RSA SecurID and OATH OTP. Capacity and pricing information are unknown, but expect the drive to be expensive.