One of the most recommended methods is to hash passwords using strong hashing algorithms like SHA-256 or bcrypt before storing them in the database. This ensures that even if the database is compromised, passwords remain encrypted and secure.
Additionally, using salt when hashing passwords adds an extra layer of security by making it harder for attackers to use precomputed rainbow tables. It is essential to avoid storing plain text passwords or using weak encryption methods to prevent unauthorized access to user credentials. Regularly updating hashing algorithms and implementing proper access controls are also key components of maintaining a secure password storage system in SQL Server.