Question 669 of 750

Windows Security Settings →easyMultiple ChoiceObjective-mapped

Store Passwords Using Reversible Encryption: Why It's Dangerous

This 220-1202 practice question tests your understanding of windows security settings. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

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?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

Clue: "primary"
Why it matters: Asks for the main purpose or function, not a secondary benefit. Eliminate answers that describe side-effects or partial functions.

A
It increases the time required to log on to the system.
Why wrong: While there may be a slight performance impact, the primary risk is not about logon speed but about password exposure.
B
It allows users to bypass the password complexity requirement.
Why wrong: Reversible encryption does not affect password complexity enforcement; it only changes how the password hash is stored.
C
It stores passwords in a format that can be easily decrypted, making them vulnerable if the database is compromised.
This is the core risk: reversible encryption allows passwords to be recovered as plaintext, which is a major security vulnerability.
D
It prevents the use of biometric authentication methods.
Why wrong: Reversible encryption does not interfere with biometric authentication; it only affects password storage.

Full breakdown with real-world context →

Quick Answer

The primary security risk is that it stores passwords in a format that can be easily decrypted back to plaintext, making them highly vulnerable if the Security Account Manager (SAM) database is ever compromised. Unlike hashing, which is a one-way process, reversible encryption uses a key to both encrypt and decrypt data, meaning an attacker who obtains the encrypted passwords can reverse them to their original form with relative ease. On the CompTIA A+ Core 2 220-1202 exam, this setting tests your understanding of why password storage policies prioritize one-way hashing over encryption; a common trap is confusing this with BitLocker or EFS, which protect data at rest rather than stored credentials. Remember the mnemonic “REV is for REVerse”—if you see reversible encryption enabled, think of it as a backdoor that turns a password database into a plaintext list.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

It stores passwords in a format that can be easily decrypted, making them vulnerable if the database is compromised.

The 'Store passwords using reversible encryption' policy (enabled via the 'Network access: Do not allow storage of passwords and credentials for network authentication' or directly in a Group Policy setting) 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.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
It increases the time required to log on to the system.
Why it's wrong here
While there may be a slight performance impact, the primary risk is not about logon speed but about password exposure.
✗
It allows users to bypass the password complexity requirement.
Why it's wrong here
Reversible encryption does not affect password complexity enforcement; it only changes how the password hash is stored.
✓
It stores passwords in a format that can be easily decrypted, making them vulnerable if the database is compromised.
Why this is correct
This is the core risk: reversible encryption allows passwords to be recovered as plaintext, which is a major security vulnerability.
Clue confirmation
The clue word "primary" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
It prevents the use of biometric authentication methods.
Why it's wrong here
Reversible encryption does not interfere with biometric authentication; it only affects password storage.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often 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.

Detailed technical explanation

How to think about this question

Under the hood, when reversible encryption is enabled, Windows stores the password using a reversible encryption algorithm (e.g., RC4 or AES) rather than a one-way hash like NTLM hash. This is required for protocols that need the plaintext password, such as Digest Authentication or Challenge-Handshake Authentication Protocol (CHAP). In a real-world scenario, if an attacker dumps the SAM hive or uses Mimikatz to extract credentials from LSASS, they can decrypt the stored password, compromising the entire domain if the account has elevated privileges.

KKey Concepts to Remember

Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.

TExam Day Tips

Watch for words such as best, first, most likely and least administrative effort.
Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A junior network technician can log in to a core router but cannot reach the enable prompt or configuration mode. The AAA server is authenticating the login — but the authorisation policy only grants privilege level 1, not 15. Authentication (who you are) is working; authorisation (what you can do) is not.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this 220-1202 question test?

Windows Security Settings — This question tests Windows Security Settings — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: It stores passwords in a format that can be easily decrypted, making them vulnerable if the database is compromised. — The 'Store passwords using reversible encryption' policy (enabled via the 'Network access: Do not allow storage of passwords and credentials for network authentication' or directly in a Group Policy setting) 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.

What should I do if I get this 220-1202 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

Are there clue words in this question I should notice?

Yes — watch for: "primary". Asks for the main purpose or function, not a secondary benefit. Eliminate answers that describe side-effects or partial functions.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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