Basic cyber security says that passwords should be encrypted and hashed, so that even the company storing them doesn’t know what the password is. (When you log in, the site performs the same encrypting and hashing steps and compares the results) Otherwise if they are hacked, the attackers get access to all the passwords.

I’ve noticed a few companies ask for specific characters of my password to prove who I am (eg enter the 2nd and 9th character)

Is there any secure way that this could be happening? Or are the companies storing my password in plain text?

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    21 year ago

    Full-stack dev here, not necessarily in answer to OP’s question, but in my experience it is a pretty standard practice that when you log in to a service, the web page sends your unhashed creds to the server, where your password is then hashed and compared to the stored hash. Via HTTPS/TLS/SSL, this is a reasonably secure practice since the creds are still encrypted while in transport. Hashing is a computationally expensive process that (before the advent of WASM) wasn’t really feasible to do on the client side.