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?

  • Theoretically: Shamir’s Secret sharing with a limited amount of secret material available to the helpdesk could form a relatively secure method to validate k knowledge of the password without disclosing all of it.

    Practically: pretty sure they just store (part of) your password in plaintext. Getting SSS working can be difficult and it’s much easier to just pretend your password is stored safely instead.

    In between those two you have intermediate options (hashing a bunch of combinations of position + salt + character with a very large amount of rounds) but if we’re talking about two characters, you may as well just store the characters in the dagaabse directly