Apache Syncope is an open-source identity management system that can optionally store user passwords encrypted with AES in its internal database. However, in affected versions 2.1, 3.0, and 4.0, when AES encryption is enabled for password storage, the system uses a hard-coded cryptographic key embedded directly in the source code. This practice violates secure cryptographic principles (CWE-321) because the key is static, predictable, and cannot be changed by administrators. An attacker who gains access to the internal database can leverage knowledge of this hard-coded key to decrypt stored password values, exposing user credentials in cleartext. This vulnerability does not impact encrypted plain attributes, which are separately encrypted. The flaw arises from improper key management and reliance on a fixed key rather than a securely generated, unique key per deployment. The Apache Software Foundation has addressed this issue in versions 3.0.15 and 4.0.3 by removing the hard-coded key and presumably implementing secure key management. No public exploits have been reported to date, but the vulnerability poses a significant risk if an attacker obtains database access.

For European organizations using Apache Syncope with AES encryption enabled for password storage, this vulnerability could lead to severe confidentiality breaches. If an attacker gains access to the internal database—via SQL injection, insider threat, or other means—they can decrypt all user passwords, potentially compromising user accounts and enabling lateral movement within the network. This exposure could lead to identity theft, unauthorized access to sensitive systems, and regulatory non-compliance, especially under GDPR which mandates strong protection of personal data. The integrity and availability of systems may also be indirectly affected if attackers leverage compromised credentials to escalate privileges or disrupt services. Organizations relying on Syncope for identity management in sectors such as finance, healthcare, or government are particularly at risk due to the sensitivity of stored credentials and the critical nature of identity services.

Organizations should immediately assess their use of Apache Syncope and verify if AES encryption for password storage is enabled. If so, they must upgrade to Apache Syncope versions 3.0.15 or 4.0.3, which fix the hard-coded key issue. Until upgrades are applied, consider disabling AES encryption for passwords or migrating to alternative secure password storage mechanisms, such as salted hashing with bcrypt or Argon2, which do not rely on reversible encryption. Additionally, restrict and monitor database access rigorously to prevent unauthorized access. Implement strong network segmentation and access controls around identity management systems. Conduct audits to detect any unauthorized database access or suspicious activity. Finally, review and update cryptographic key management policies to ensure keys are unique, securely generated, and not embedded in source code.