Do not store passwords directly in the user store
Jason Taylor, Prashant Bansode, Carlos Farre, Madhu Sundararajan, Steve Gregersen
Do not store user passwords either in plaintext or encrypted format. Instead, store password hashes with a salt. By storing your password with hashes and salt, you help prevent an attacker that gains access to your user store from obtaining the user passwords.
If you use encryption, you have the added problem of securing the encryption key. Use one of the membership providers to help protect credentials in storage and where possible, specify a hashed password format on your provider configuration.
If you must implement your own user stores, store one-way password hashes with salt. Generate the hash from a combination of the password and a random salt value. Use an algorithm such as SHA256. If your credential store is compromised, the salt value helps
to slow an attacker who is attempting to perform a dictionary attack. This gives you additional time to detect and react to the compromise.