What role does SYSKEY play in relation to hashed passwords on Windows?

SYSKEY, or System Key, plays a critical role in protecting hashed passwords within the Windows operating system. It encrypts the hashed passwords stored in the Security Accounts Manager (SAM) database, adding an additional layer of security.

When a user logs in, Windows retrieves the hashed password from the SAM and decrypts it using the SYSKEY. This means that even if an attacker were to gain access to the SAM file, the hashed passwords would still be protected by the encryption provided by SYSKEY. It's important to note that this enhances the security of password storage, making it significantly harder for unauthorized users to retrieve usable credentials.

The other options do not accurately describe the function of SYSKEY. It does not directly contribute to the complexity of passwords, generate new passwords, or lock user accounts. Instead, its primary purpose is to ensure that hashed passwords are encrypted, thereby safeguarding them against potential compromises.