Reversible password encryption is not disabled.

From Windows 2008 Domain Controller Security Technical Implementation Guide

Part of Reversible Password Encryption

Associated with IA controls: IAIA-2, IAIA-1

SV-29689r1_rule Reversible password encryption is not disabled.

Vulnerability discussion

Storing passwords using reversible encryption is essentially the same as storing clear-text versions of the passwords. For this reason, this policy should never be enabled.

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Configure the system to prevent passwords from being saved using reverse encryption.

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