So, GMRS does not allow, and no radios support, encryption. What you are doing is using ctcss to only hear other people using the same code. It does not prevent anyone not using a ctcss from hearing what you are saying, but rather prevents you from hearing if the channel is currently in use...
HAM radio and GMRS do not share any frequencies. HAM (in the 70cm bandwidth) is in the 420 to 460 MHz range as GMAS (and FRS) are in the 470 MHz range. While FRS (a free radio service) and GMRS share some frequencies, GMRS is not a free service and requires a license. FRS is limited to 500mw...