Microsoft recommends using Windows authentication when connecting a Windows application to an SQL server database.
http://msdn.microsoft.com/en-us/library/89211k9b.aspx
I understand this to mean that the database must have a user with enough permissions to manipulate data and that user links to the currently logged in Windows user. If this is true, how do I prevent the user from bypassing the application and simply modifying data directly in the database?
It seems like I am stuck between using Windows Authentication and potentially allowing users to modify data directly in the database, or attempting to hide the connection string password somewhere so only the app can modify this data.
If you're that concerned about it, you can implement a logon trigger on the server that for certain people (eg members of a certain Windows group), they can't log in unless the application name has a certain value. Note that this is weak security since it's pretty easy to set the application name (even in SSMS). It can/will slow down the logon process, though. So keep that in mind if that's a concern for you.
Alternatively, you can have your application authenticate to and interact with an application server, after which the application server connects to and interacts with the database. The application server can run as a service account, to which you'd grant the permissions you need. This way, the end users' accounts aren't in the database to do raw DML against the db.
But I agree with the other answer here: stored procedures are the classic answer to this question.
It is possible to create stored procedures / views etc and only allow the user permission on those. This prevents the user from accessing the database structure directly, and you maintain control over what the user can do (via creating the functionality in the stored procedures / views). If using windows credentials, I think that this would be the best solution.
This site explains how to grant there permission on stored procedures. http://msdn.microsoft.com/en-us/library/ms345484.aspx
Here is the list of options, for posterity:
Create sprocs to access your data, grant access only to those sprocs. No one but the dbo can alter tables.
Create a second executable, whether a web or a windows service, with which your GUI application communicates. The 2nd executable can run with different, securely hidden credentials (IIS, Windows Services).
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