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security - How to store passwords in Winforms application?

I have some code like this in a winforms app I was writing to query a user's mail box Storage Quota.

DirectoryEntry mbstore = new DirectoryEntry(
      @"LDAP://" + strhome, 
      m_serviceaccount, 
      [m_pwd], 
      AuthenticationTypes.Secure);

No matter what approach I tried (like SecureString), I am easily able to see the password (m_pwd) either using Reflector or using strings tab of Process Explorer for the executable.

I know I could put this code on the server or tighten up the security using mechanisms like delegation and giving only the required privileges to the service account.

Can somebody suggest a reasonably secure way to store the password in the local application without revealing the password to hackers?

Hashing is not possible since I need to know the exact password (not just the hash for matching purpose). Encryption/Decryption mechanisms are not working since they are machine dependent.

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The sanctified method is to use CryptoAPI and the Data Protection APIs.

To encrypt, use something like this (C++):

DATA_BLOB blobIn, blobOut;
blobIn.pbData=(BYTE*)data;
blobIn.cbData=wcslen(data)*sizeof(WCHAR);

CryptProtectData(&blobIn, description, NULL, NULL, NULL, CRYPTPROTECT_LOCAL_MACHINE | CRYPTPROTECT_UI_FORBIDDEN, &blobOut);
_encrypted=blobOut.pbData;
_length=blobOut.cbData;

Decryption is the opposite:

DATA_BLOB blobIn, blobOut;
blobIn.pbData=const_cast<BYTE*>(data);
blobIn.cbData=length;

CryptUnprotectData(&blobIn, NULL, NULL, NULL, NULL, CRYPTPROTECT_UI_FORBIDDEN, &blobOut);

std::wstring _decrypted;
_decrypted.assign((LPCWSTR)blobOut.pbData,(LPCWSTR)blobOut.pbData+blobOut.cbData/sizeof(WCHAR));

If you don't specify CRYPTPROTECT_LOCAL_MACHINE then the encrypted password can be securely stored in the registry or config file and only you can decrypt it. If you specify LOCAL_MACHINE, then anyone with access to the machine can get it.


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