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https://issues.apache.org/jira/browse/KARAF-3625?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=14586289#comment-14586289
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santhosh commented on KARAF-3625:
---------------------------------

Here is a workaround for older versions (2.3.6)
http://santechinfo.blogspot.in/2015/06/password-encryption-in-karaf-236.html

> Password encryption doesn't work
> --------------------------------
>
>                 Key: KARAF-3625
>                 URL: https://issues.apache.org/jira/browse/KARAF-3625
>             Project: Karaf
>          Issue Type: Bug
>          Components: karaf-security
>    Affects Versions: 3.0.3, 2.3.8, 2.3.9, 2.3.10, 4.0.0.M2
>            Reporter: Jean-Baptiste Onofré
>            Assignee: Jean-Baptiste Onofré
>            Priority: Critical
>             Fix For: 2.4.2, 3.0.4, 2.3.11, 4.0.0.M3
>
>
> With encryption.enabled=true in etc/org.apache.karaf.jaas.cfg configuration 
> file, Karaf should encrypt the password in etc/users.properties (prefixing 
> and suffixing with {CRYPT} keyword).
> However, the password are not encrypted in the etc/users.properties.



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