Reading Encrypted Password from Configuration File and Decrypt it at login

Hi All,
My application reads a configuration file to connect to the ORACLE database. The values defined for password are clear text as given below:
user: 'mh'
password='abcd1234'
Is there is any way I can give an encrypted password in the configuration file instead of a clear text file and at the time of login ORACLE decrypts it. I am using ORACLE 11g Database.
My company have a requirement that passwords are not stored in the clear in properties files. the reason being I suppose that if the password is stored in plaintext someone could hit the property file directly, get the password and then connect to the database with it.
For a regular user connecting through an Oracle client or SQL Developer they would need to have the plaintext password in order to connect.
its based on the requirements of
International Standards Organization Guidance
ISO 17799 � 9.5.4 requires password management systems to:
� enforce the use of individual passwords
� allow users to select and change their own passwords if appropriate
� enforce a choice of quality passwords
� force regular changes of passwords
� maintain a record of previous user passwords to prevent re-use
� not display passwords when they are being entered
� store password files separately from application system data
� store passwords in encrypted form using a one way encryption algorithm
� alter default vendor passwords following installation of software
So if I can store the password encrypted using a one way algorithm then hacker/user couldn't decrypt it and then access the database.
I have feeling there is a way of configuring this in Oracle advanced Security, but just can't quite get it to work.
Edited by: user5568473 on 20-May-2013 00:05

So if I can store the password encrypted using a one way algorithm then hacker/user couldn't decrypt it and then access the database.... and neither can your application. Encryption is needed in this case. The decryption must be written into your application. I've written my own in some cases, but finding a library for your development language is a smarter solution.
One alternative is using an Oracle wallet. It doesn't fit every circumstance and does have some maintenance headaches.
You can set up a basic secure password store to encrypt and store the password for a given user@instance combination, and then connect to the database without passing a password. SQL*Net adds in the appropriate password from the wallet for when you connect.
http://www.oracle.com/technetwork/database/security/twp-db-security-secure-ext-pwd-stor-133399.pdf
Advanced Security Option also allows you to set up a Public Key Infrastructure connections (SSL encryption and/or authentication). It also uses a wallet to store the SSL certificates and credentials. I don't have personal experience on this approach.
SSL and the wallet allow you to connect to the database similar to CONNECT/@net_service_name or sqlplus /@net_service_namehttp://docs.oracle.com/cd/B28359_01/network.111/b28530/asossl.htm#CIHCBIEG

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