Configuring Password Encryption

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All Cisco console and Telnet passwords configured on the router are stored in plain text within the configuration of the router by default, thus making them easily readable. If someone issues the show running−config privileged mode command, the password is displayed. Another instance when the password can easily be read is if you store your configurations on a TFTP server, the intruder only needs to gain access into the TFTP machine, after which the intruder can read the
configuration with a simple text editor. Password encryption stores passwords in an encrypted manner on the router. The encryption is applied to all configured passwords on the router.

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