Store Passwords Using Reversible Encryption
Stores passwords essentially as plaintext. Should always be Disabled.
- Policy path
- Computer Configuration > Windows Settings > Security Settings > Account Policies > Password Policy
- Supported on
- Windows 10, Windows 11, Windows Server 2016 and later
Stores passwords essentially as plaintext. Should always be Disabled. Security baselines recommend setting it to Disabled.
Description
Store Passwords Using Reversible Encryption is a Windows Group Policy setting located under Computer Configuration > Windows Settings > Security Settings > Account Policies > Password Policy. It applies to the Computer Configuration branch and is classified as a Critical-level policy in the Account Policy category.
Stores passwords essentially as plaintext. Should always be Disabled.
Microsoft sets the default value to Disabled while industry security baselines (CIS, NIST, DISA STIG) recommend Disabled.
In-depth explanation
This is a critical security control. Misconfiguration creates an exploitable attack path that adversaries actively scan for, and a single overlooked endpoint can compromise the entire fleet. Treat it as a hard baseline requirement rather than an optional tuning knob.
The policy is grouped under Account Policy – Password, which means it is typically applied through a domain-wide GPO linked at the OU level. In a multi-tenant MSP context, scope it through WMI filters or security group filtering rather than linking at the domain root, so that you can roll out progressively (pilot OU → wider rings → all production).
The setting takes effect after the next Group Policy refresh (gpupdate /force for immediate testing, or by default within ~90 minutes for workstations and ~5 minutes on domain controllers). For computer-side policies a reboot may be required; for user-side policies, a sign-off/sign-on cycle is enough.
Use cases
- Apply organization-wide hardening of account policy on all domain-joined Windows endpoints.
- Roll out a CIS Benchmark-aligned baseline targeting 'Store Passwords Using Reversible Encryption' via a dedicated GPO.
- Reduce attack surface for accounts that handle privileged credentials or sensitive data.
- Standardize the configuration across multiple customer tenants for an MSP-managed fleet.
- Meet ISO 27001 / SOC 2 / RGPD password and identity controls.
Security implications
Failing to enforce this policy creates a documented attack path that adversaries actively probe – think Pass-the-Hash, Kerberoasting, NTLM relay, RDP brute-force, LSASS dumping, or token impersonation, depending on the specific control. A single misconfigured endpoint can be enough to pivot to a Domain Admin compromise.
If this policy must remain at default for a legitimate compatibility reason, compensate with a strong detection rule in your EDR/SIEM, isolate the endpoint in its own VLAN, and document the exception with a target remediation date.
How to configure
- Open Group Policy Management Console (
gpmc.msc) on a domain controller or a workstation with RSAT installed. - Create or edit a GPO linked to the OU containing the target computer configurations. We recommend a dedicated baseline GPO (e.g. SEC – Account Policy) instead of editing Default Domain Policy.
- Navigate to
Computer Configuration > Windows Settings > Security Settings > Account Policies > Password Policy. - Open Store Passwords Using Reversible Encryption and set it to
Disabled. - Click OK and close the editor.
- On the target endpoint, run
gpupdate /force(or wait for the next refresh cycle), then verify withrsop.mscorgpresult /h report.html.