In a secure authentication system, user passwords should never be sent or stored in plain text. When a password is: Sent in plain text over the network (for example, via HTTP), Not encrypted during transmission, or stored with weak or outdated hashing methods (like MD5, SHA-1, or even Base64), it becomes very easy for attackers to intercept or crack it through brute-force methods.
Attackers monitoring network traffic (e.g., via MITM attacks) can capture user passwords.
Once credentials are stolen, attackers can log in as legitimate users.
Harvested credentials can be reused on other platforms if users reuse passwords.
Customers lose trust in platforms that fail to protect sensitive information.
Violates data protection laws (GDPR, HIPAA, PCI-DSS, etc.).