When submitting a Challenge/Response question/answer pair the information is processed by a Logical Attribute Handler (LAH). The LAH takes the data and records it in a string into your repository. The Forgotten Password Logical Attribute Handler can encrypt the question/answer pairs.
To enable encryption, configure the Forgotten Password Logical Attribute Handler:
The separator is the value between the question and the answer. The entry if plain text would appear like:
What is your mother's maiden name??Smith
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If you put a value into "EncryptionKey" it will use that value to mangle the data for both the question and answer so they cannot be read in clear text.