Password Encryption & Protection

This question asks whether passwords are ever visible as readable text - whether on screen when someone types them, in your database, in configuration files, or anywhere else in your system. It includes all passwords: user passwords, technical service account passwords, database passwords, and API keys. Everything should be hidden with dots or asterisks when typed and encrypted when stored.

Visible passwords are a critical security failure that violates basic HIPAA technical safeguards and immediately fails any security assessment. Plain text passwords have led to massive healthcare breaches and millions in fines. This is a binary pass/fail issue - any plain text password storage will disqualify you from healthcare deals and could make you liable for breaches.

Companies often encrypt user passwords but store service account passwords, API keys, or database credentials in plain text in configuration files. Another dangerous mistake is logging passwords in error messages or support logs, or showing passwords briefly during the reset process, all of which create security vulnerabilities.