Reversible password encryption must be disabled.

From Windows 7 Security Technical Implementation Guide

Part of Reversible Password Encryption

Associated with: CCI-000196

SV-25013r2_rule Reversible password encryption must be 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 must never be enabled.

Check content

Analyze the system using the Security Configuration and Analysis snap-in. Expand the Security Configuration and Analysis tree view. Navigate to Account Policies >> Password Policy. If the value for "Store password using reversible encryption" is not disabled, this is a finding.

Fix text

Configure the policy value for Computer Configuration >> Windows Settings >> Security Settings >> Account Policies >> Password Policy >> "Store password using reversible encryption" to "Disabled".

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