What are the potential security risks associated with storing passwords in a text file in PHP applications?

Storing passwords in a text file in PHP applications can pose a significant security risk as text files are typically not secure and can be easily accessed by unauthorized users. To mitigate this risk, passwords should be stored securely using encryption techniques such as hashing. This ensures that even if the text file is compromised, the passwords cannot be easily deciphered.

// Store passwords securely using password hashing
$password = "myPassword123";
$hashedPassword = password_hash($password, PASSWORD_DEFAULT);

// Verify password
if (password_verify($password, $hashedPassword)) {
    echo "Password is correct";
} else {
    echo "Password is incorrect";
}