Let's say I've got an application where my "administrators" are able to see the regular users passwords easily. They can even change it, if they need to.
When a new user comes, the "admin" adds the user to the "system", and gives him the password he just typed. Then the user may change it.
If the user forgets his password, he asks the "admin", whose will be able to see it and tells him.
In that application, let's say the passwords are stored in files which are stored in a directory.
The "administrators" are using (let's name it easily…) "admin.php" to access to their administration interface.
Is it safe to choose not to encrypt the passwords but to chmod the directory to "0700", so that only the "admin.php" script can access/modify it?
If not, can you tell why it is not safe to store it in a "0700" folder?
Is a SQL database safer than a "0700" folder?
What is the best way to do?