We know Windows Phone 8 supports Bitlocker full storage encryption, but anyone with a Windows Phone 8 handset would have noticed there appears to be no tick box to activate it.
It turns out the only way to activate Bitlocker is via Exchange ActiveSync policies, which will trigger the encryption of the internal storage volume in Windows Phone 8. The SD card in Windows Phone 8 is not encrypted, as it can only store media like music and videos.
Of course for enterprise settings this is no issue, but if you believed as regular user your phone was encrypted by default this news should serve as a warning that you are not as protected as you believed.
Thanks Tore for the tip.