From Windows Server 2008 R2 Member Server Security Technical Implementation Guide
Part of Reversible Password Encryption
Associated with: CCI-000196
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.
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, then this is a finding.
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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