In recent years the cases of hacking have increased at an exponential rate. The Advanced Encryption Standard (AES) is a national institute of standards and technology specification for the encryption of electronic data. It is expected to become the accepted means of encrypting digital information, including financial, telecommunications and government data. In this paper, the authors explain the importance and the need for encryption and the Advanced Encryption Standard (AES) algorithm for password encryption. Included is a complete AES algorithm.