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Are encrypted passwords the way to go?

It's understood that with CA -- via the telnet port -- all of our user Ids and passwords float all over the Internet. If you capture what's "in the air" you can even see the code (CCSID) to "de-crypt" the passwords -- even with SSL telnet there is no real encryption of the passwords. Do you know if there are methods to encrypt iSeries passwords BEFORE they float around in the Internet?
I know of now way to encrypt the password that could subsequently be able to be "consumed" on the target side. The problem with encrypting passwords is that the system that is going to use the password has to know how to de-crypt them. Rather than encrypting passwords you might want to investigate the use of Kerberos and EIM to provide a single-sign-on solution. V5R3 adds numerous enhancements to this function. Extensive information on this can be found at IBM's Information Center at or in my newly released book co-authored with Pat Botz – Experts' Guide to OS/400 and i5/OS Security available at The Learning Center.


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