Verbatim Corporate Secure and Corporate Secure FIPS Edition USB flash drives validate passwords with a program running on the host computer rather than the device hardware, which allows physically proximate attackers to access the cleartext drive contents via a modified program.
blogs.zdnet.com/hardware/?p=6655
it.slashdot.org/story/10/01/05/1734242/
securitytracker.com/id?1023409
www.h-online.com/security/news/item/NIST-certified-USB-Flash-drives-with-hardware-encryption-cracked-895308.html
www.verbatim.com/security/security-update.cfm
www.ironkey.com/usb-flash-drive-flaw-exposed