Federal agencies are encrypting sensitive data on only 30 percent of their laptop PCs and other devices, leaving the rest vulnerable to data loss and unauthorized release, according to a new report from the Government Accountability Office.

Although federal law does not specifically address the use of encryption to protect data, the Office of Management and Budget issued a policy in 2006 recommending its use, and in 2007 OMB required agencies to use encryption on computers and devices that carry sensitive data.