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220-1102 Practice Question: During a security audit, you discover that a…
During a security audit, you discover that a Windows 10 workstation has the 'Store passwords and credentials using reversible encryption' policy enabled. What is the primary security risk associated with this setting?
⚠ Common exam trap
Many candidates confuse 'reversible encryption' with 'password complexity' or 'account lockout' settings, but the core risk is the ability to decrypt stored passwords, not a performance or usability issue.
Correct answer & explanation
The 'Store passwords using reversible encryption' policy causes Windows to store passwords in a format that can be decrypted back to plaintext. This directly violates the principle of storing only hashed credentials; if the SAM database or LSASS process memory is compromised, an attacker can recover the original password, enabling lateral movement or privilege escalation.
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Audit Logging and Review
Key term
Audit
An audit is a systematic, independent review of IT systems, processes, and controls to verify compliance with policies, standards, and regulations.
Key term
Encryption
Encryption is the process of converting readable data into a secret code to prevent unauthorized access.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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