Customer wants to validate how passwords are stored in Appian.
I guess we need to understand passwords for users who login to the system as well as passwords for other places in the application.
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While installing Appian environment, we have to provide at least one database schema and generally it acts as the primary data store.
If you have database access, you can easily access in on-premise and check respective database tables
Create a support case to cloud environment access/database details.