Are the security tools in the iPhone not enough or are you worried someone might try to place your personal data on their iPhone thus stealing most of your identity? Fret not, Firmware 3.0 coupled with iTunes 8.1 will allow you to password protect your back ups.

While there is no word on what kind of encryption is used, it’s a step in the right direction for those looking to add another layer of security to their personal data. The feature is enabled in the summary tab by clicking off a small check box. You’ll be prompted to enter your password and confirm it to lock your backup.

Via: The iPhone Blog