The first question I have asked myself was: This passwords have to be encrypted! How is that possible? After small research I found the simple answer - there is an option to encrypt the passwords with windows but this option is disabled by default.
You can find this option like this:
settings -> control panel -> administrative tools -> local security policy -> local policies -> account policies -> password policy -> store password using reversible encryption…
I think that 99% of the computers still have this option disabled. So this passwords are not a secret to anyone able to run live Linux CD
So if you want to keep secrets on your PC you have to think about installing encryption program like cryptainer (free version limited up to 25MB) or even better solution the GPL program TrueCrypt - absolutely free and unlimited and with more options.
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