I connected to a Windows Server 2008 R2 shared folder from a Mac OS X Mountain Lion computer over the Internet using this command:
mount -t smbfs //user@server/path/to/share local_folder
Is traffic encrypted by default? What settings do I look at (if any) to know whether it was encrypted? If it wasn't encrypted, what's the easiest way to encrypt it? Was the password I typed at the command line encrypted?
Update: sysadmin1138 has addressed the password question. Does anyone know how I can tell if the traffic itself is being encrypted?