The Encrypting File System (EFS) was first introduced in Windows 2000 and, as Microsoft claims, is an excellent encryption system with no back door.
However, the most secure encryption can be ambiguous. It would efficiently prevent hackers and other illegal intruders from breaking into your system and getting access to your well-encrypted data. The other side of the coin is that both a regular user and a seasoned administrator can lose important data due to unforeseen circumstances. It is also the case with EFS.
Check out the success story on how EFS-encrypted data can be recovered (the PDF is 81 Kbyte) with Advanced EFS Data Recovery.