For BIOS boot password, the answer is correct- relatively easy to bypass. Normally short the CMOS down.
For hard drive password locks - I believe that that they normally have a small crypto chip on the circuit board. When you enable them, the ATA spec then sends a signal back to the BIOS that results in control passing to the chip. It then asks for the password. Initially when you set it, it takes the password, encrypts it, and stores it on the drive platters. Subsequently when the drive is booted, the crypto chip assumes control, queries for the password and checks it against the stored copy. If they match, the crypto chip allows further boot.
THERE ARE DRIVE DECRYPTERS. I don't know the pricing, but I've seen them. They plug directly into the drive and can decrypt this sort of protection. It might be possible to swap circuit boards, but that wouldn't work if the drive manufacturer was smart enough to move the crypto chip inside the casing alongside the platters.
OK that makes sense. The Dell documentation does indicate that moving the drive to another PC wont get around the HDD password but there is no mention of encryption. It sounds like this would probably be adequate if the system was lost or stolen and would prevent most people from accessing the data on the drive but is certainly not high end security. – user10762 – 2009-10-28T05:03:14.693
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We are using these Samsung SSDs that use the hard drive password in the BIOS to encrypt themselves: http://www.samsung.com/au/consumer/pc-peripherals/solid-state-drive/solid-state-drive/MZ-7PD128BW I've tried putting the encrypted drive into another machine and Windows thinks that the disk hasn't been initialised yet.
– Matthew Lock – 2013-04-03T08:54:42.977