Internet, Networking, & Security Antivirus Store Passwords Using Reversible Encryption Configuring Vista Password Policy Settings by Tony Bradley, CISSP-ISSAP Writer Tony Bradley is a former Lifewire writer and tech journalist who specializes in network and internet security. He is a respected information security expert and prolific author. our editorial process LinkedIn Tony Bradley, CISSP-ISSAP Updated on December 23, 2019 Tweet Share Email Antivirus Online Scams Social Media Scams Email Scams Phone & Texting Scams Enabling Store Passwords Using Reversible Encryption determines whether Windows stores passwords using reversible encryption. Enabling this is essentially the same as storing passwords in plain text which is insecure and not recommended. The purpose of this policy setting is to provide support for applications that use protocols that require knowledge of the user's password for authentication purposes. Enabling this policy setting should be a last resort used only in extreme situation where no alternative exists and application requirements outweigh the need to protect password information. Store Passwords Using Reversible Encryption must be enabled when using CHAP (Challenge-Handshake Authentication Protocol) authentication through remote access or Internet Authentication Services (IAS). It is also required when using Digest Authentication in Internet Information Services (IIS). Was this page helpful? Thanks for letting us know! Get the Latest Tech News Delivered Every Day Email Address Sign up There was an error. Please try again. You're in! Thanks for signing up. There was an error. Please try again. Thank you for signing up. Tell us why! Other Not enough details Hard to understand Submit