Encrypting user data for automatic login to third party system

Question

I find myself in a situation where I have a set of users on a site who all have stored usernames and passwords that allow them to automatically access third party services v

Answer 1

You stumbled over the biggest problem with encrypting data in the database:

➽ Where to store the key?

Encryption cannot solve the problem of securing data, it can only "concentrate" it to a key. Wherever you store the key, your application must be able to decrypt the data, so can do an attacker. There are two possible solutions to this problem i know of:

1. Place the key in a place as secure as you can. That means, it should surely be placed outside of the www-root directory in an inaccessible directory on the server. Depending on the importance of the data, you can also consider to outsource encryption to another dedicated server.
2. Don't store a key at all and derive it from the user password. This is the only really safe way, because not even the server can decrypt the data then. The cons are of course, that the user needs to enter the password every time he uses your service. If the user changes the password, you need to re-encrypt all data. If the user forgets the password, the data is lost.

P.S. I would recommend to encrypt the data before storing it to the database, because MySQL AES_ENCRYPT uses the ECB mode without an IV. This allows to search for a certain value, but is less secure (i'm pretty sure that you don't want to search by password).