diff --git a/pkg/services/encryption/ossencryption/ossencryption.go b/pkg/services/encryption/ossencryption/ossencryption.go
index 60168b48e9c..bfce3e35af8 100644
--- a/pkg/services/encryption/ossencryption/ossencryption.go
+++ b/pkg/services/encryption/ossencryption/ossencryption.go
@@ -1,11 +1,13 @@
 package ossencryption
 
 import (
+	"bytes"
 	"context"
 	"crypto/aes"
 	"crypto/cipher"
 	"crypto/rand"
 	"crypto/sha256"
+	"encoding/base64"
 	"errors"
 	"fmt"
 	"io"
@@ -22,11 +24,20 @@ func ProvideService() *Service {
 	return &Service{}
 }
 
-const saltLength = 8
+const (
+	saltLength                   = 8
+	aesCfb                       = "aes-cfb"
+	encryptionAlgorithmDelimiter = '*'
+)
 
 func (s *Service) Decrypt(_ context.Context, payload []byte, secret string) ([]byte, error) {
+	alg, payload, err := deriveEncryptionAlgorithm(payload)
+	if err != nil {
+		return nil, err
+	}
+
 	if len(payload) < saltLength {
-		return nil, fmt.Errorf("unable to compute salt")
+		return nil, errors.New("unable to compute salt")
 	}
 	salt := payload[:saltLength]
 	key, err := encryptionKeyToBytes(secret, string(salt))
@@ -39,11 +50,49 @@ func (s *Service) Decrypt(_ context.Context, payload []byte, secret string) ([]b
 		return nil, err
 	}
 
-	// The IV needs to be unique, but not secure. Therefore it's common to
+	switch alg {
+	case aesCfb:
+		return decryptCFB(block, payload)
+	default:
+		return nil, errors.New("unsupported encryption algorithm")
+	}
+}
+
+func deriveEncryptionAlgorithm(payload []byte) (string, []byte, error) {
+	if len(payload) == 0 {
+		return "", nil, fmt.Errorf("unable to derive encryption algorithm")
+	}
+
+	if payload[0] != encryptionAlgorithmDelimiter {
+		return aesCfb, payload, nil // backwards compatibility
+	}
+
+	payload = payload[1:]
+	algDelim := bytes.Index(payload, []byte{encryptionAlgorithmDelimiter})
+	if algDelim == -1 {
+		return aesCfb, payload, nil // backwards compatibility
+	}
+
+	algB64 := payload[:algDelim]
+	payload = payload[algDelim+1:]
+
+	alg := make([]byte, base64.RawStdEncoding.DecodedLen(len(algB64)))
+
+	_, err := base64.RawStdEncoding.Decode(alg, algB64)
+	if err != nil {
+		return "", nil, err
+	}
+
+	return string(alg), payload, nil
+}
+
+func decryptCFB(block cipher.Block, payload []byte) ([]byte, error) {
+	// The IV needs to be unique, but not secure. Therefore, it's common to
 	// include it at the beginning of the ciphertext.
 	if len(payload) < aes.BlockSize {
 		return nil, errors.New("payload too short")
 	}
+
 	iv := payload[saltLength : saltLength+aes.BlockSize]
 	payload = payload[saltLength+aes.BlockSize:]
 	payloadDst := make([]byte, len(payload))
@@ -65,6 +114,7 @@ func (s *Service) Encrypt(_ context.Context, payload []byte, secret string) ([]b
 	if err != nil {
 		return nil, err
 	}
+
 	block, err := aes.NewCipher(key)
 	if err != nil {
 		return nil, err
diff --git a/pkg/services/encryption/ossencryption/ossencryption_test.go b/pkg/services/encryption/ossencryption/ossencryption_test.go
index ad61f4ab0f2..c3ebcda536f 100644
--- a/pkg/services/encryption/ossencryption/ossencryption_test.go
+++ b/pkg/services/encryption/ossencryption/ossencryption_test.go
@@ -37,6 +37,32 @@ func TestEncryption(t *testing.T) {
 		_, err := svc.Decrypt(context.Background(), []byte(""), "1234")
 		require.Error(t, err)
 
-		assert.Equal(t, "unable to compute salt", err.Error())
+		assert.Equal(t, "unable to derive encryption algorithm", err.Error())
+	})
+
+	t.Run("decrypting ciphertext with aes-gcm as encryption algorithm should return error", func(t *testing.T) {
+		// Raw slice of bytes that corresponds to the following ciphertext:
+		// - 'grafana' as payload
+		// - '1234' as secret
+		// - 'aes-gcm' as encryption algorithm
+		// With no encryption algorithm metadata.
+		ciphertext := []byte{42, 89, 87, 86, 122, 76, 87, 100, 106, 98, 81, 42, 48, 99, 55, 50, 51, 48, 83, 66, 20, 99, 47, 238, 61, 44, 129, 125, 14, 37, 162, 230, 47, 31, 104, 70, 144, 223, 26, 51, 180, 17, 76, 52, 36, 93, 17, 203, 99, 158, 219, 102, 74, 173, 74}
+		_, err := svc.Decrypt(context.Background(), ciphertext, "1234")
+		require.Error(t, err)
+
+		assert.Equal(t, "unsupported encryption algorithm", err.Error())
+	})
+
+	t.Run("decrypting ciphertext with aes-cfb as encryption algorithm do not fail", func(t *testing.T) {
+		// Raw slice of bytes that corresponds to the following ciphertext:
+		// - 'grafana' as payload
+		// - '1234' as secret
+		// - 'aes-cfb' as encryption algorithm
+		// With no encryption algorithm metadata.
+		ciphertext := []byte{42, 89, 87, 86, 122, 76, 87, 78, 109, 89, 103, 42, 73, 71, 50, 57, 121, 110, 90, 109, 115, 23, 237, 13, 130, 188, 151, 118, 98, 103, 80, 209, 79, 143, 22, 122, 44, 40, 102, 41, 136, 16, 27}
+		decrypted, err := svc.Decrypt(context.Background(), ciphertext, "1234")
+		require.NoError(t, err)
+
+		assert.Equal(t, []byte("grafana"), decrypted)
 	})
 }