The invention discloses a virtual bit password security processing method. The method comprises the following steps: S1, inputting an x-bit virtual bit password; S2, receiving an x-bit virtual password; and S3, taking the y-bit effective password as a substring, carrying out character string matching in the received x-bit virtual password, and if the value of the substring and the position in thevirtual password are successfully matched, indicating that the password authentication is successful and ending, otherwise, indicating that the password authentication is failed and ending. The invention also discloses a virtual password security processing system. In the invention, the position of the correct password character string in the virtual bit password is fixed, so that in the passwordauthentication process, not only the character string value but also the position matching need to be carried out, and the password authentication is successful only if the character string value andthe position matching are successful. Therefore, in the trial and error cracking process of the password, the correct password needs to be found, the position of the correct password in the virtual password needs to be found, and the trial and error cracking difficulty is undoubtedly and greatly increased.