By default, LDAP traffic is unsigned, which makes this traffic vulnerable to man . in . the . middle attacks. In this type of attack, an intruder captures packets between the server and the client and modifies them before forwarding them to the client. In the case of an LDAP server, this means that an attacker could cause a client to make decisions based on false records from the LDAP directory. This setting requires that the domain controller signs data sent to the client, which allows the client to verify that the data was not modified in transit. This is important because the client makes security decisions based on LDAP query results. For instance, member servers rely on LDAP queries to find out group membership or to determine which group policy objects should apply.
If this policy is configured as 'none', the server will not require data signatures but will provide them if requested by the client. The 'Require signature' term means the domain contfoller will only bind with clients that negotiate LDAP data.
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