diff --git a/soapui/src/main/java/com/eviware/soapui/impl/wsdl/support/wss/entries/UsernameEntry.java b/soapui/src/main/java/com/eviware/soapui/impl/wsdl/support/wss/entries/UsernameEntry.java
index cd68eecb71..662c583528 100644
--- a/soapui/src/main/java/com/eviware/soapui/impl/wsdl/support/wss/entries/UsernameEntry.java
+++ b/soapui/src/main/java/com/eviware/soapui/impl/wsdl/support/wss/entries/UsernameEntry.java
@@ -77,6 +77,7 @@ public void process(WSSecHeader secHeader, Document doc, PropertyExpansionContex
                 sha.reset();
                 sha.update(password.getBytes("UTF-8"));
                 password = Base64.encode(sha.digest());
+                token.setPasswordsAreEncoded(true);
             } catch (Exception e) {
                 SoapUI.logError(e);
             }