diff --git a/accounts/pkg/service/v0/accounts.go b/accounts/pkg/service/v0/accounts.go
index 3e8fc06d2..50d34bd32 100644
--- a/accounts/pkg/service/v0/accounts.go
+++ b/accounts/pkg/service/v0/accounts.go
@@ -3,6 +3,7 @@ package service
 import (
 	"context"
 	"fmt"
+	"golang.org/x/crypto/bcrypt"
 	"path"
 	"regexp"
 	"strconv"
@@ -24,15 +25,12 @@ import (
 	settings "github.com/owncloud/ocis/settings/pkg/proto/v0"
 	settings_svc "github.com/owncloud/ocis/settings/pkg/service/v0"
 	"github.com/rs/zerolog"
-	"github.com/tredoe/osutil/user/crypt"
 	"google.golang.org/genproto/protobuf/field_mask"
 	"google.golang.org/protobuf/types/known/timestamppb"
+)
 
-	// register crypt functions
-	_ "github.com/tredoe/osutil/user/crypt/apr1_crypt"
-	_ "github.com/tredoe/osutil/user/crypt/md5_crypt"
-	_ "github.com/tredoe/osutil/user/crypt/sha256_crypt"
-	_ "github.com/tredoe/osutil/user/crypt/sha512_crypt"
+const (
+	_hashDifficulty = 11
 )
 
 // accLock mutually exclude readers from writers on account files
@@ -317,11 +315,13 @@ func (s Service) CreateAccount(ctx context.Context, in *proto.CreateAccountReque
 	if out.PasswordProfile != nil {
 		if out.PasswordProfile.Password != "" {
 			// encrypt password
-			c := crypt.New(crypt.SHA512)
-			if out.PasswordProfile.Password, err = c.Generate([]byte(out.PasswordProfile.Password), nil); err != nil {
+			hashed, err := bcrypt.GenerateFromPassword([]byte(in.Account.PasswordProfile.Password), _hashDifficulty)
+			if err != nil {
 				s.log.Error().Err(err).Str("id", id).Msg("could not hash password")
 				return merrors.InternalServerError(s.id, "could not hash password: %v", err.Error())
 			}
+			out.PasswordProfile.Password = string(hashed)
+			in.Account.PasswordProfile.Password = ""
 		}
 
 		if err := passwordPoliciesValid(out.PasswordProfile.PasswordPolicies); err != nil {
@@ -499,13 +499,13 @@ func (s Service) UpdateAccount(ctx context.Context, in *proto.UpdateAccountReque
 		}
 		if in.Account.PasswordProfile.Password != "" {
 			// encrypt password
-			c := crypt.New(crypt.SHA512)
-			if out.PasswordProfile.Password, err = c.Generate([]byte(in.Account.PasswordProfile.Password), nil); err != nil {
+			hashed, err := bcrypt.GenerateFromPassword([]byte(in.Account.PasswordProfile.Password), _hashDifficulty)
+			if err != nil {
 				in.Account.PasswordProfile.Password = ""
 				s.log.Error().Err(err).Str("id", id).Msg("could not hash password")
 				return merrors.InternalServerError(s.id, "could not hash password: %v", err.Error())
 			}
-
+			out.PasswordProfile.Password = string(hashed)
 			in.Account.PasswordProfile.Password = ""
 		}
 
@@ -805,6 +805,5 @@ func isPasswordValid(logger log.Logger, hash string, pwd string) (ok bool) {
 		}
 	}()
 
-	c := crypt.NewFromHash(hash)
-	return c.Verify(hash, []byte(pwd)) == nil
+	return bcrypt.CompareHashAndPassword([]byte(hash), []byte(pwd)) == nil
 }
diff --git a/accounts/pkg/service/v0/service.go b/accounts/pkg/service/v0/service.go
index 231568d44..889be2536 100644
--- a/accounts/pkg/service/v0/service.go
+++ b/accounts/pkg/service/v0/service.go
@@ -153,7 +153,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                20000,
 			GidNumber:                30000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=35210$sa1u5Pmfo4cr23Vw$RJNGElaDB1D3xorWkfTEGm2Ko.o2QL3E0cimKx23MNxVWVFSkUUeRoC7FqC4RzYDNQBD6cKzovTEaDD.8TDkD.",
+				Password: "$2a$11$4WNffzgU/WrIRiDnwu8OnOwgOIIUqR/2Ptvp7WJAQCTSgSrylyuvC",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -172,7 +172,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                20001,
 			GidNumber:                30000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=81434$sa1u5Pmfo4cr23Vw$W78cyL884GmuvDpxYPvSRBVzEj02T5QhTTcI8Dv4IKvMooDFGv4bwaWMkH9HfJ0wgpEBW7Lp.4Cad0xE/MYSg1",
+				Password: "$2a$11$Wu2XcDnE6G2No8C88FVWluNHyXuQQi0cHzSe82Vni8AdwIO12fphC",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -191,7 +191,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                20002,
 			GidNumber:                30000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=5524$sa1u5Pmfo4cr23Vw$58bQVL/JeUlwM0RY21YKAFMvKvwKLLysGllYXox.vwKT5dHMwdzJjCxwTDMnB2o2pwexC8o/iOXyP2zrhALS40",
+				Password: "$2a$11$6Lak4zh1xUkpObg2rrOotOTdQYGj2Uu/sowcVLhub.8qYIr.CxzEW",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -211,7 +211,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                20003,
 			GidNumber:                30000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=47068$lhw6odzXW0LTk/ao$GgxS.pIgP8jawLJBAiyNor2FrWzrULF95PwspRkli2W3VF.4HEwTYlQfRXbNQBMjNCEcEYlgZo3a.kRz2k2N0/",
+				Password: "$2a$11$jvI6PHuvrimpcCHzL2Q2WOqfm1FGdYAuSYZBDahr/B48fpiFxyDy2",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -227,7 +227,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                20004,
 			GidNumber:                30000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=95551$/bdqsmiGleA20kAS$rCAvHV7wjaHVF5nEVAnpW7mugRqcnPmdU4UPqhSroE74gXFxNGZflCF.ZyHwocDwgAw3uLkqsCzB1h5bXBjYB0",
+				Password: "$2a$11$En9VIUtqOdDyUl.LuUq2KeuBb5A2n8zE0lkJ2v6IDRSaOamhNq6Uu",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -244,7 +244,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                10000,
 			GidNumber:                15000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=9746$sa1u5Pmfo4cr23Vw$2hnwpkTvUkWX0v6mh8Aw1pbzEXa9EUJzmrey4g2W/8arwWCwhteqU//3aWnA3S0d5T21fOKYteoqlsN1IbTcN.",
+				Password: "$2a$11$ntoTP2W/kyQIuoYpH5mRBuNzaEERYWSwn/zCsY5rtffen4d41y9.6",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
@@ -260,7 +260,7 @@ func (s Service) createDefaultAccounts() (err error) {
 			UidNumber:                10001,
 			GidNumber:                15000,
 			PasswordProfile: &proto.PasswordProfile{
-				Password: "$6$rounds=91087$sa1u5Pmfo4cr23Vw$wPC3BbMTbP/ytlo0p.f99zJifyO70AUCdKIK9hkhwutBKGCirLmZs/MsWAG6xHjVvmnmHN5NoON7FUGv5pPaN.",
+				Password: "$2a$11$40xzy3rO8Tq4j2VkFbKz8Ow19BRaqaixEjAR0IbvQXxtOvMtkjwzy",
 			},
 			AccountEnabled: true,
 			MemberOf: []*proto.Group{
diff --git a/changelog/unreleased/change-hashing-algorithm.md b/changelog/unreleased/change-hashing-algorithm.md
new file mode 100644
index 000000000..b9a0f8ffe
--- /dev/null
+++ b/changelog/unreleased/change-hashing-algorithm.md
@@ -0,0 +1,7 @@
+Change: Use bcrypt to hash the user passwords 
+
+Change the hashing algorithm from SHA-512 to bcrypt since the latter is better suitable for password hashing.
+This is a breaking change. Existing deployments need to regenerate the accounts folder.
+
+
+https://github.com/owncloud/ocis/issues/510