Security system that uses indirect password-based encryption

An improved system and approaches for protecting passwords are disclosed. A file security system for an organization operates to protect the files of the organization and thus prevents or limits users from accessing some or all of the files (e.g., documents) associated with the organization. According to one aspect, a password entered by a user is used, provided it is authenticated, to obtain a respective authentication string (a relatively longer string of numbers or characters). The retrieved authentication string is then used to enable the user to enter the file security system and/or to access secured files therein. According to another aspect, user passwords are not stored in the file security system to avoid security breaches due to unauthorized capture of user passwords.