diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/AesCipherStreamHandler.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/AesCipherStreamHandler.java
new file mode 100644
index 0000000000..5955b8b762
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/AesCipherStreamHandler.java
@@ -0,0 +1,108 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+
+package sonia.scm.cli.config;
+
+import com.google.common.base.Charsets;
+
+import javax.crypto.Cipher;
+import javax.crypto.CipherInputStream;
+import javax.crypto.CipherOutputStream;
+import javax.crypto.spec.GCMParameterSpec;
+import javax.crypto.spec.SecretKeySpec;
+import java.io.IOException;
+import java.io.InputStream;
+import java.io.OutputStream;
+import java.security.SecureRandom;
+
+/**
+ * Implementation of {@link CipherStreamHandler} which uses AES. This version is used since version 1.60 for the
+ * cli client encryption.
+ *
+ * @author Sebastian Sdorra
+ * @since 1.60
+ */
+public class AesCipherStreamHandler implements CipherStreamHandler {
+
+  private static final String ALGORITHM = "AES/GCM/NoPadding";
+
+  private final SecureRandom random = new SecureRandom();
+
+  private final byte[] secretKey;
+
+  AesCipherStreamHandler(String secretKey) {
+    this.secretKey = secretKey.getBytes(Charsets.UTF_8);
+  }
+
+  @Override
+  public OutputStream encrypt(OutputStream outputStream) throws IOException {
+    Cipher cipher = createCipherForEncryption();
+    outputStream.write(cipher.getIV());
+    return new CipherOutputStream(outputStream, cipher);
+  }
+
+  @Override
+  public InputStream decrypt(InputStream inputStream) throws IOException {
+    Cipher cipher = createCipherForDecryption(inputStream);
+    return new CipherInputStream(inputStream, cipher);
+  }
+
+  private Cipher createCipherForDecryption(InputStream inputStream) throws IOException {
+    byte[] iv =new byte[12];
+    inputStream.read(iv);
+    return createCipher(Cipher.DECRYPT_MODE, iv);
+  }
+
+  private Cipher createCipherForEncryption() {
+    byte[] iv = generateIV();
+    return createCipher(Cipher.ENCRYPT_MODE, iv);
+  }
+
+  private byte[] generateIV() {
+    // use 12 byte as described at nist
+    // https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-38d.pdf
+    byte[] iv = new byte[12];
+    random.nextBytes(iv);
+    return iv;
+  }
+
+  private Cipher createCipher(int mode, byte[] iv) {
+    try {
+      Cipher cipher = Cipher.getInstance(ALGORITHM);
+      GCMParameterSpec parameterSpec = new GCMParameterSpec(128, iv);
+      cipher.init(mode, new SecretKeySpec(secretKey, "AES"), parameterSpec);
+      return cipher;
+    } catch (Exception ex) {
+      throw new ScmConfigException("failed to create cipher", ex);
+    }
+  }
+}
diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/CipherStreamHandler.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/CipherStreamHandler.java
index e687988be3..2321b3d9d9 100644
--- a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/CipherStreamHandler.java
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/CipherStreamHandler.java
@@ -32,11 +32,15 @@
 
 package sonia.scm.cli.config;
 
+import java.io.IOException;
 import java.io.InputStream;
 import java.io.OutputStream;
 
 /**
  * The CipherStreamHandler is able to encrypt and decrypt streams.
+ *
+ * @author Sebastian Sdorra
+ * @since 1.60
  */
 public interface CipherStreamHandler {
 
@@ -47,7 +51,7 @@ public interface CipherStreamHandler {
    *
    * @return raw input stream
    */
-  InputStream decrypt(InputStream inputStream);
+  InputStream decrypt(InputStream inputStream) throws IOException;
 
   /**
    * Encrypts the given output stream.
@@ -56,5 +60,5 @@ public interface CipherStreamHandler {
    *
    * @return encrypting output stream
    */
-  OutputStream encrypt(OutputStream outputStream);
+  OutputStream encrypt(OutputStream outputStream) throws IOException;
 }
diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ConfigFiles.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ConfigFiles.java
new file mode 100644
index 0000000000..5087c50746
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ConfigFiles.java
@@ -0,0 +1,151 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+package sonia.scm.cli.config;
+
+import com.google.common.annotations.VisibleForTesting;
+import com.google.common.base.Charsets;
+import com.google.common.base.Preconditions;
+import com.google.common.base.Strings;
+import sonia.scm.security.KeyGenerator;
+
+import javax.xml.bind.JAXB;
+import java.io.*;
+import java.util.Arrays;
+
+/**
+ * Util methods for configuration files.
+ *
+ * @author Sebastian Sdorra
+ * @since 1.60
+ */
+final class ConfigFiles {
+
+  private static final KeyGenerator keyGenerator = new SecureRandomKeyGenerator();
+
+  // SCM Config Version 2
+  @VisibleForTesting
+  static final byte[] VERSION_IDENTIFIER = "SCV2".getBytes(Charsets.US_ASCII);
+
+  private ConfigFiles() {
+  }
+
+  /**
+   * Returns {@code true} if the file is encrypted with the v2 format.
+   *
+   * @param file configuration file
+   *
+   * @return {@code true} for format v2
+   *
+   * @throws IOException
+   */
+  static boolean isFormatV2(File file) throws IOException {
+    try (InputStream input = new FileInputStream(file)) {
+      byte[] bytes = new byte[VERSION_IDENTIFIER.length];
+      input.read(bytes);
+      return Arrays.equals(VERSION_IDENTIFIER, bytes);
+    }
+  }
+
+  /**
+   * Decrypt and parse v1 configuration file.
+   *
+   * @param keyStore key store
+   * @param file configuration file
+   *
+   * @return client configuration
+   *
+   * @throws IOException
+   */
+  static ScmClientConfig parseV1(KeyStore keyStore, File file) throws IOException {
+    String secretKey = secretKey(keyStore);
+    CipherStreamHandler cipherStreamHandler = new WeakCipherStreamHandler(secretKey);
+    return decrypt(cipherStreamHandler, new FileInputStream(file));
+  }
+
+   /**
+   * Decrypt and parse v12configuration file.
+   *
+   * @param keyStore key store
+   * @param file configuration file
+   *
+   * @return client configuration
+   *
+   * @throws IOException
+   */
+  static ScmClientConfig parseV2(KeyStore keyStore, File file) throws IOException {
+    String secretKey = secretKey(keyStore);
+    CipherStreamHandler cipherStreamHandler = new AesCipherStreamHandler(secretKey);
+    try (InputStream input = new FileInputStream(file)) {
+      input.skip(VERSION_IDENTIFIER.length);
+      return decrypt(cipherStreamHandler, input);
+    }
+  }
+
+  /**
+   * Store encrypt and write the configuration to the given file.
+   * Note the method uses always the latest available format.
+   *
+   * @param keyStore key store
+   * @param config configuration
+   * @param file configuration file
+   *
+   * @throws IOException
+   */
+  static void store(KeyStore keyStore, ScmClientConfig config, File file) throws IOException {
+    String secretKey = keyGenerator.createKey();
+    CipherStreamHandler cipherStreamHandler = new AesCipherStreamHandler(secretKey);
+    try (OutputStream output = new FileOutputStream(file)) {
+      output.write(VERSION_IDENTIFIER);
+      encrypt(cipherStreamHandler, output, config);
+    }
+    keyStore.set(secretKey);
+  }
+
+  private static String secretKey(KeyStore keyStore) {
+    String secretKey = keyStore.get();
+    Preconditions.checkState(!Strings.isNullOrEmpty(secretKey), "no stored secret key found");
+    return secretKey;
+  }
+
+  private static ScmClientConfig decrypt(CipherStreamHandler cipherStreamHandler, InputStream input) throws IOException {
+    try ( InputStream decryptedInputStream = cipherStreamHandler.decrypt(input) ) {
+      return JAXB.unmarshal(decryptedInputStream, ScmClientConfig.class);
+    }
+  }
+
+  private static void encrypt(CipherStreamHandler cipherStreamHandler, OutputStream output, ScmClientConfig clientConfig) throws IOException {
+    try ( OutputStream encryptedOutputStream = cipherStreamHandler.encrypt(output) ) {
+      JAXB.marshal(clientConfig, encryptedOutputStream);
+    }
+  }
+
+}
diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ScmClientConfigFileHandler.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ScmClientConfigFileHandler.java
index bbb0fd85c1..00a0eb6cf6 100644
--- a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ScmClientConfigFileHandler.java
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/ScmClientConfigFileHandler.java
@@ -35,15 +35,10 @@ package sonia.scm.cli.config;
 
 //~--- non-JDK imports --------------------------------------------------------
 
-import sonia.scm.security.KeyGenerator;
-import sonia.scm.security.UUIDKeyGenerator;
 import sonia.scm.util.Util;
 
-import javax.xml.bind.JAXBContext;
-import javax.xml.bind.JAXBException;
-import javax.xml.bind.Marshaller;
-import javax.xml.bind.Unmarshaller;
-import java.io.*;
+import java.io.File;
+import java.io.IOException;
 
 //~--- JDK imports ------------------------------------------------------------
 
@@ -63,40 +58,20 @@ public class ScmClientConfigFileHandler
   //~--- constructors ---------------------------------------------------------
 
   private final KeyStore keyStore;
-  private final KeyGenerator keyGenerator;
   private final File file;
-  private final JAXBContext context;
-
-  private final CipherStreamHandler cipherStreamHandler;
 
 
   /**
-   * Constructs ...
+   * Constructs a new ScmClientConfigFileHandler
    *
    */
   public ScmClientConfigFileHandler() {
-    this(new PrefsKeyStore(), new UUIDKeyGenerator(), getDefaultConfigFile());
+    this(new PrefsKeyStore(), getDefaultConfigFile());
   }
 
-  ScmClientConfigFileHandler(KeyStore keyStore, KeyGenerator keyGenerator, File file) {
+  ScmClientConfigFileHandler(KeyStore keyStore,File file) {
     this.keyStore = keyStore;
-    this.keyGenerator = keyGenerator;
     this.file = file;
-
-    String key = keyStore.get();
-
-    if (Util.isEmpty(key)) {
-      key = keyGenerator.createKey();
-      keyStore.set(key);
-    }
-
-    cipherStreamHandler = new WeakCipherStreamHandler(key.toCharArray());
-
-    try {
-      context = JAXBContext.newInstance(ScmClientConfig.class);
-    } catch (JAXBException ex) {
-      throw new ScmConfigException("could not create JAXBContext for ScmClientConfig", ex);
-    }
   }
 
   //~--- methods --------------------------------------------------------------
@@ -132,17 +107,27 @@ public class ScmClientConfigFileHandler
     ScmClientConfig config = null;
 
     if (file.exists()) {
-      try (InputStream input = cipherStreamHandler.decrypt(new FileInputStream(file))) {
-        Unmarshaller um = context.createUnmarshaller();
-        config = (ScmClientConfig) um.unmarshal(input);
-      } catch (IOException | JAXBException ex) {
-        throw new ScmConfigException("could not read config file", ex);
-      }
+      config = readFromFile();
     }
 
     return config;
   }
 
+  private ScmClientConfig readFromFile() {
+    ScmClientConfig config;
+    try {
+      if (ConfigFiles.isFormatV2(file)) {
+        config = ConfigFiles.parseV2(keyStore, file);
+      } else {
+        config = ConfigFiles.parseV1(keyStore, file);
+        ConfigFiles.store(keyStore, config, file);
+      }
+    } catch (IOException ex) {
+      throw new ScmConfigException("could not read config file", ex);
+    }
+    return config;
+  }
+
   /**
    * Method description
    *
@@ -150,10 +135,9 @@ public class ScmClientConfigFileHandler
    * @param config
    */
   public void write(ScmClientConfig config) {
-    try (OutputStream output =  cipherStreamHandler.encrypt(new FileOutputStream(file))) {
-      Marshaller m = context.createMarshaller();
-      m.marshal(config, output);
-    } catch (IOException | JAXBException ex) {
+    try {
+      ConfigFiles.store(keyStore, config, file);
+    } catch (IOException ex) {
       throw new ScmConfigException("could not write config file", ex);
     }
   }
diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/SecureRandomKeyGenerator.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/SecureRandomKeyGenerator.java
new file mode 100644
index 0000000000..19ae135461
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/SecureRandomKeyGenerator.java
@@ -0,0 +1,69 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+
+package sonia.scm.cli.config;
+
+import com.google.common.annotations.VisibleForTesting;
+import sonia.scm.security.KeyGenerator;
+
+import java.security.SecureRandom;
+import java.util.Locale;
+
+/**
+ * Create keys by using {@link SecureRandom}. The SecureRandomKeyGenerator produces aes compatible keys.
+ * Warning the class is not thread safe.
+ *
+ * @author Sebastian Sdorra
+ * @since 1.60
+ */
+public class SecureRandomKeyGenerator implements KeyGenerator {
+
+  private SecureRandom random = new SecureRandom();
+
+  // key length 16 for aes128
+  @VisibleForTesting
+  static final int KEY_LENGTH = 16;
+
+  private static final String UPPER = "ABCDEFGHIJKLMNOPQRSTUVWXYZ";
+  private static final String LOWER = UPPER.toLowerCase(Locale.ENGLISH);
+  private static final String DIGITS = "0123456789";
+  private static final char[] ALL = (UPPER + LOWER + DIGITS).toCharArray();
+
+  @Override
+  public String createKey() {
+    char[] key = new char[KEY_LENGTH];
+    for (int idx = 0; idx < KEY_LENGTH; ++idx) {
+      key[idx] = ALL[random.nextInt(ALL.length)];
+    }
+    return new String(key);
+  }
+}
diff --git a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/WeakCipherStreamHandler.java b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/WeakCipherStreamHandler.java
index a9e3e5ef42..175d1986c6 100644
--- a/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/WeakCipherStreamHandler.java
+++ b/scm-clients/scm-cli-client/src/main/java/sonia/scm/cli/config/WeakCipherStreamHandler.java
@@ -45,6 +45,9 @@ import java.security.spec.InvalidKeySpecException;
  * Weak implementation of {@link CipherStreamHandler}. This is the old implementation, which was used in versions prior
  * 1.60.
  *
+ * @author Sebastian Sdorra
+ * @since 1.60
+ *
  * @see <a href="https://bitbucket.org/sdorra/scm-manager/issues/978/iteration-count-for-password-based">Issue 978</a>
  * @see <a href="https://bitbucket.org/sdorra/scm-manager/issues/979/constant-salts-for-pbe-are-insecure">Issue 979</a>
  */
@@ -61,8 +64,8 @@ public class WeakCipherStreamHandler implements CipherStreamHandler {
    *
    * @param secretKey secret key
    */
-  public WeakCipherStreamHandler(char[] secretKey) {
-    this.secretKey = secretKey;
+  WeakCipherStreamHandler(String secretKey) {
+    this.secretKey = secretKey.toCharArray();
   }
 
   @Override
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/AesCipherStreamHandlerTest.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/AesCipherStreamHandlerTest.java
new file mode 100644
index 0000000000..14000faa33
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/AesCipherStreamHandlerTest.java
@@ -0,0 +1,68 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+
+package sonia.scm.cli.config;
+
+import com.google.common.base.Charsets;
+import com.google.common.io.ByteStreams;
+import org.junit.Test;
+import sonia.scm.security.KeyGenerator;
+
+import java.io.*;
+
+import static org.junit.Assert.assertEquals;
+
+public class AesCipherStreamHandlerTest {
+
+  private final KeyGenerator keyGenerator = new SecureRandomKeyGenerator();
+
+  @Test
+  public void testEncryptAndDecrypt() throws IOException {
+    AesCipherStreamHandler cipherStreamHandler = new AesCipherStreamHandler(keyGenerator.createKey());
+
+    // douglas adams
+    String content = "If you try and take a cat apart to see how it works, the first thing you have on your hands is a nonworking cat.";
+
+    // encrypt
+    ByteArrayOutputStream output = new ByteArrayOutputStream();
+    OutputStream encryptedOutput = cipherStreamHandler.encrypt(output);
+    encryptedOutput.write(content.getBytes(Charsets.UTF_8));
+    encryptedOutput.close();
+
+    InputStream input = new ByteArrayInputStream(output.toByteArray());
+    input = cipherStreamHandler.decrypt(input);
+    byte[] decrypted = ByteStreams.toByteArray(input);
+
+    assertEquals(content, new String(decrypted, Charsets.UTF_8));
+  }
+
+}
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ClientConfigurationTests.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ClientConfigurationTests.java
new file mode 100644
index 0000000000..20422df7ed
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ClientConfigurationTests.java
@@ -0,0 +1,96 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+
+package sonia.scm.cli.config;
+
+import com.google.common.base.Charsets;
+import com.google.common.io.ByteStreams;
+
+import javax.xml.bind.JAXB;
+import java.io.*;
+
+import static org.junit.Assert.assertEquals;
+
+final class ClientConfigurationTests {
+
+  private ClientConfigurationTests() {
+  }
+
+  static void testCipherStream(CipherStreamHandler cipherStreamHandler, String content) throws IOException {
+    byte[] encrypted = encrypt(cipherStreamHandler, content);
+    String decrypted = decrypt(cipherStreamHandler, encrypted);
+    assertEquals(content, decrypted);
+  }
+
+
+  static byte[] encrypt(CipherStreamHandler cipherStreamHandler, String content) throws IOException {
+    ByteArrayOutputStream output = new ByteArrayOutputStream();
+    OutputStream encryptedOutput = cipherStreamHandler.encrypt(output);
+    encryptedOutput.write(content.getBytes(Charsets.UTF_8));
+    encryptedOutput.close();
+    return output.toByteArray();
+  }
+
+  static String decrypt(CipherStreamHandler cipherStreamHandler, byte[] encrypted) throws IOException {
+    InputStream input = new ByteArrayInputStream(encrypted);
+    input = cipherStreamHandler.decrypt(input);
+    byte[] decrypted = ByteStreams.toByteArray(input);
+    input.close();
+
+    return new String(decrypted, Charsets.UTF_8);
+  }
+
+  static void assertSampleConfig(ScmClientConfig config) {
+    ServerConfig defaultConfig;
+    defaultConfig = config.getDefaultConfig();
+
+    assertEquals("http://localhost:8080/scm", defaultConfig.getServerUrl());
+    assertEquals("admin", defaultConfig.getUsername());
+    assertEquals("admin123", defaultConfig.getPassword());
+  }
+
+  static ScmClientConfig createSampleConfig() {
+    ScmClientConfig config = new ScmClientConfig();
+    ServerConfig defaultConfig = config.getDefaultConfig();
+    defaultConfig.setServerUrl("http://localhost:8080/scm");
+    defaultConfig.setUsername("admin");
+    defaultConfig.setPassword("admin123");
+    return config;
+  }
+
+  static void encrypt(CipherStreamHandler cipherStreamHandler, ScmClientConfig config, File file) throws IOException {
+    try (OutputStream output = cipherStreamHandler.encrypt(new FileOutputStream(file))) {
+      JAXB.marshal(config, output);
+    }
+  }
+
+}
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ConfigFilesTest.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ConfigFilesTest.java
new file mode 100644
index 0000000000..5fbdfdc0c0
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ConfigFilesTest.java
@@ -0,0 +1,105 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+package sonia.scm.cli.config;
+
+import com.google.common.base.Charsets;
+import com.google.common.io.Files;
+import org.junit.Rule;
+import org.junit.Test;
+import org.junit.rules.TemporaryFolder;
+
+import java.io.ByteArrayOutputStream;
+import java.io.File;
+import java.io.IOException;
+
+import static org.junit.Assert.*;
+
+public class ConfigFilesTest {
+
+  @Rule
+  public TemporaryFolder temporaryFolder = new TemporaryFolder();
+
+  @Test
+  public void testIsFormatV2() throws IOException {
+    byte[] content = "The door was the way to... to... The Door was The Way".getBytes(Charsets.UTF_8);
+
+    File fileV1 = temporaryFolder.newFile();
+    Files.write(content, fileV1);
+
+    assertFalse(ConfigFiles.isFormatV2(fileV1));
+
+    File fileV2 = temporaryFolder.newFile();
+
+    ByteArrayOutputStream baos = new ByteArrayOutputStream();
+    baos.write(ConfigFiles.VERSION_IDENTIFIER);
+    baos.write(content);
+    Files.write(baos.toByteArray(), fileV2);
+
+    assertTrue(ConfigFiles.isFormatV2(fileV2));
+  }
+
+  @Test
+  public void testParseV1() throws IOException {
+    InMemoryKeyStore keyStore = createKeyStore();
+    WeakCipherStreamHandler handler = new WeakCipherStreamHandler(keyStore.get());
+
+    ScmClientConfig config = ClientConfigurationTests.createSampleConfig();
+    File file = temporaryFolder.newFile();
+    ClientConfigurationTests.encrypt(handler, config, file);
+
+    config = ConfigFiles.parseV1(keyStore, file);
+    ClientConfigurationTests.assertSampleConfig(config);
+  }
+
+  @Test
+  public void storeAndParseV2() throws IOException {
+    InMemoryKeyStore keyStore = new InMemoryKeyStore();
+    ScmClientConfig config = ClientConfigurationTests.createSampleConfig();
+    File file = temporaryFolder.newFile();
+
+    ConfigFiles.store(keyStore, config, file);
+
+    String key = keyStore.get();
+    assertNotNull(key);
+
+    config = ConfigFiles.parseV2(keyStore, file);
+    ClientConfigurationTests.assertSampleConfig(config);
+  }
+
+  private InMemoryKeyStore createKeyStore() {
+    String secretKey = new SecureRandomKeyGenerator().createKey();
+    InMemoryKeyStore keyStore = new InMemoryKeyStore();
+    keyStore.set(secretKey);
+    return keyStore;
+  }
+
+}
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/InMemoryKeyStore.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/InMemoryKeyStore.java
new file mode 100644
index 0000000000..1d0069a087
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/InMemoryKeyStore.java
@@ -0,0 +1,53 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+
+package sonia.scm.cli.config;
+
+public class InMemoryKeyStore implements KeyStore {
+
+  private String secretKey;
+
+  @Override
+  public void set(String secretKey) {
+    this.secretKey = secretKey;
+  }
+
+  @Override
+  public String get() {
+    return secretKey;
+  }
+
+  @Override
+  public void remove() {
+    this.secretKey = null;
+  }
+}
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ScmClientConfigFileHandlerTest.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ScmClientConfigFileHandlerTest.java
index ec598fd2d4..a9f6a46418 100644
--- a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ScmClientConfigFileHandlerTest.java
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/ScmClientConfigFileHandlerTest.java
@@ -31,6 +31,8 @@
 
 package sonia.scm.cli.config;
 
+import com.google.common.io.Files;
+import com.google.common.io.Resources;
 import org.junit.Rule;
 import org.junit.Test;
 import org.junit.rules.TemporaryFolder;
@@ -38,10 +40,9 @@ import sonia.scm.security.UUIDKeyGenerator;
 
 import java.io.File;
 import java.io.IOException;
+import java.net.URL;
 
-import static org.junit.Assert.assertEquals;
-import static org.junit.Assert.assertFalse;
-import static org.junit.Assert.assertTrue;
+import static org.junit.Assert.*;
 
 public class ScmClientConfigFileHandlerTest {
 
@@ -53,7 +54,7 @@ public class ScmClientConfigFileHandlerTest {
     File configFile = temporaryFolder.newFile();
 
     ScmClientConfigFileHandler handler = new ScmClientConfigFileHandler(
-      new InMemoryKeyStore(), new UUIDKeyGenerator(), configFile
+      new InMemoryKeyStore(), configFile
     );
 
     ScmClientConfig config = new ScmClientConfig();
@@ -76,23 +77,62 @@ public class ScmClientConfigFileHandlerTest {
     assertFalse(configFile.exists());
   }
 
-  private static class InMemoryKeyStore implements KeyStore {
+  @Test
+  public void testClientConfigFileHandlerWithOldConfiguration() throws IOException {
+    File configFile = temporaryFolder.newFile();
 
-    private String secretKey;
+    // old implementation has used uuids as keys
+    String key = new UUIDKeyGenerator().createKey();
 
-    @Override
-    public void set(String secretKey) {
-      this.secretKey = secretKey;
-    }
+    WeakCipherStreamHandler weakCipherStreamHandler = new WeakCipherStreamHandler(key);
+    ScmClientConfig clientConfig = ClientConfigurationTests.createSampleConfig();
+    ClientConfigurationTests.encrypt(weakCipherStreamHandler, clientConfig, configFile);
 
-    @Override
-    public String get() {
-      return secretKey;
-    }
+    assertFalse(ConfigFiles.isFormatV2(configFile));
 
-    @Override
-    public void remove() {
-      this.secretKey = null;
-    }
+    KeyStore keyStore = new InMemoryKeyStore();
+    keyStore.set(key);
+
+    ScmClientConfigFileHandler handler = new ScmClientConfigFileHandler(
+      keyStore, configFile
+    );
+
+    ScmClientConfig config = handler.read();
+    ClientConfigurationTests.assertSampleConfig(config);
+
+    // ensure key has changed
+    assertNotEquals(key, keyStore.get());
+
+    // ensure config rewritten with v2
+    assertTrue(ConfigFiles.isFormatV2(configFile));
+  }
+
+  @Test
+  public void testClientConfigFileHandlerWithRealMigration() throws IOException {
+    URL resource = Resources.getResource("sonia/scm/cli/config/scm-cli-config.enc.xml");
+    byte[] bytes = Resources.toByteArray(resource);
+
+    File configFile = temporaryFolder.newFile();
+    Files.write(bytes, configFile);
+
+    String key = "358e018a-0c3c-4339-8266-3874e597305f";
+    KeyStore keyStore = new InMemoryKeyStore();
+    keyStore.set(key);
+
+    ScmClientConfigFileHandler handler = new ScmClientConfigFileHandler(
+      keyStore, configFile
+    );
+
+    ScmClientConfig config = handler.read();
+    ServerConfig defaultConfig = config.getDefaultConfig();
+    assertEquals("http://hitchhicker.com/scm", defaultConfig.getServerUrl());
+    assertEquals("tricia", defaultConfig.getUsername());
+    assertEquals("trillian123", defaultConfig.getPassword());
+
+    // ensure key has changed
+    assertNotEquals(key, keyStore.get());
+
+    // ensure config rewritten with v2
+    assertTrue(ConfigFiles.isFormatV2(configFile));
   }
 }
diff --git a/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/SecureRandomKeyGeneratorTest.java b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/SecureRandomKeyGeneratorTest.java
new file mode 100644
index 0000000000..e847e89cb1
--- /dev/null
+++ b/scm-clients/scm-cli-client/src/test/java/sonia/scm/cli/config/SecureRandomKeyGeneratorTest.java
@@ -0,0 +1,47 @@
+/**
+ * Copyright (c) 2010, Sebastian Sdorra
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright notice,
+ *    this list of conditions and the following disclaimer.
+ * 2. Redistributions in binary form must reproduce the above copyright notice,
+ *    this list of conditions and the following disclaimer in the documentation
+ *    and/or other materials provided with the distribution.
+ * 3. Neither the name of SCM-Manager; nor the names of its
+ *    contributors may be used to endorse or promote products derived from this
+ *    software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+ * AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+ * IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE REGENTS OR CONTRIBUTORS BE LIABLE FOR ANY
+ * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
+ * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
+ * ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ * http://bitbucket.org/sdorra/scm-manager
+ *
+ */
+
+package sonia.scm.cli.config;
+
+import org.junit.Test;
+
+import static org.junit.Assert.*;
+
+public class SecureRandomKeyGeneratorTest {
+
+  @Test
+  public void testCreateKey() {
+    SecureRandomKeyGenerator keyGenerator = new SecureRandomKeyGenerator();
+    assertNotNull(keyGenerator.createKey());
+    assertEquals(SecureRandomKeyGenerator.KEY_LENGTH, keyGenerator.createKey().length());
+  }
+
+}
diff --git a/scm-clients/scm-cli-client/src/test/resources/sonia/scm/cli/config/scm-cli-config.enc.xml b/scm-clients/scm-cli-client/src/test/resources/sonia/scm/cli/config/scm-cli-config.enc.xml
new file mode 100644
index 0000000000..94132772a4
Binary files /dev/null and b/scm-clients/scm-cli-client/src/test/resources/sonia/scm/cli/config/scm-cli-config.enc.xml differ