zaro

How Are AD Passwords Encrypted?

Published in Password Security 4 mins read

Active Directory (AD) passwords are not encrypted in the traditional, reversible sense. Instead, they are hashed, which involves a one-way cryptographic transformation. This process creates an "encrypted output" known as a hash, as described in the provided reference.

What is Password Hashing in Active Directory?

When a user sets a password in Active Directory, the system does not store the password in its original, plain-text form. Instead, it applies a specialized mathematical process called hashing. This is a crucial security measure designed to protect user credentials.

As the reference states, "Passwords stored in AD are hashed. Meaning that once the user creates a password, an algorithm transforms that password into an encrypted output known as a 'hash'. Hashes are of fixed size so passwords of different lengths will have the same number of characters."

This transformation ensures that even if an attacker gains access to the AD database, they will only find these one-way hashes, not the actual passwords.

Hashing vs. Encryption: A Key Distinction

While the reference uses the term "encrypted output" for a hash, it's important to understand the fundamental difference between hashing and traditional encryption, especially in the context of password storage.

Feature Hashing Encryption (Traditional)
Process One-way transformation Two-way transformation (encryption and decryption)
Reversibility Irreversible (cannot be converted back to original) Reversible (can be decrypted back to original data)
Purpose Data integrity, password storage, uniqueness Confidentiality, secure data transmission/storage
Key Usage No key needed to reverse (it's irreversible) Requires a key for both encryption and decryption

For password storage, hashing is inherently more secure because there is no way to "decrypt" a hash back into the original password. This makes it impossible for attackers to recover plaintext passwords even if they compromise the hashed password database.

How Active Directory Uses Hashed Passwords for Authentication

When a user attempts to log in to an Active Directory-joined system:

  1. The password entered by the user is subjected to the same hashing algorithm used to store the original password.
  2. The newly generated hash (from the entered password) is then compared with the stored hash in Active Directory.
  3. If the two hashes match, the system authenticates the user successfully.
  4. If they do not match, authentication fails.

This comparison process eliminates the need to ever store or transmit the actual password in a vulnerable state, significantly enhancing security.

Key Characteristics of AD Password Hashes

  • Fixed Size: As noted, hashes are of a consistent length, regardless of how short or long the original password was. For example, a common hashing algorithm like SHA-256 will always produce a 256-bit hash, no matter the input size.
  • Irreversibility: This is the cornerstone of password security in AD. The one-way nature of hashing means that even with the hash, the original password cannot be mathematically derived.
  • Uniqueness (ideally): A good hashing algorithm produces a unique hash for each unique input password. While theoretical "collisions" (two different inputs yielding the same hash) are possible with some algorithms, they are extremely rare and highly improbable for strong cryptographic hashes used in AD.

Enhancing AD Password Security

While hashing is fundamental, additional security measures are vital:

  • Strong Password Policies: Implement policies that enforce complexity, length, and regular changes for passwords.
  • Multi-Factor Authentication (MFA): Add an extra layer of security requiring users to provide more than just a password (e.g., a code from a mobile app or a biometric scan).
  • Account Lockout Policies: Configure AD to lock user accounts after a certain number of failed login attempts to thwart brute-force attacks.
  • Auditing and Monitoring: Regularly review security logs for unusual activity or suspicious login patterns.

By employing hashing and these complementary security practices, Active Directory provides a robust framework for securing user credentials and access to network resources.