The SY parameter PWDHASH allows you to choose the password hashing method:
SY/PWDHASH - Password hash algorithm
The password hash algorithm to be used to record passwords.
The options are:
MD5 — RSA Message Digest Hash Algorithm, which returns a 16-byte RAW binary message digest value.
SHA-1 — United States Government Secure Hash Algorithm, which returns a RAW 20-byte binary message digest value.
SHA-256 — United States Government Secure Hash Algorithm, which returns a RAW 32-byte binary message digest value.
SHA-512 — United States Government Secure Hash Algorithm, which returns a RAW 64-byte binary message digest value.
Random hash salting is used for each. The default is MD5.
COINS recommends clients use SHA-256 as a minimum.
The user will see no difference in the user interface. Behind the scenes, each time a user logs in their password is saved using the hash algorithm specified (this is specifically updated if the PWDHASH algorithm is changed). Each time the algorithm or the password changes a new random salt string is generated and used to create the hash. The salt and algorithm used is saved on the user record together with the password hash.