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Submission + - Password Storage and Privacy Policies

OldSoldier writes: Privacy policies talk about what companies will do with your personal data. Some policies you may like some you may not like, but disclosure of the policies is the key thing. My problem is these policies neglect to mention the single most important data item sites collect about you, your password. It seems most companies do one of three things with your password. a) store it in the clear, b) store it encrypted or c) store it encrypted but you need to share it with an operator to use it. Examples of this last variation include any pin-like code you need to verbally share with a phone operator to (say) adjust your billing record.

The thing is I care deeply which policy is in place at whatever company wants me to give a password. I will give different passwords depending on the type of system they use. Yet trying to determine which system they use is very difficult.

Government requires privacy policies yet appear to be mute on this very important issue. What can we as slashdot readers do (or should we do) to fix this situation?

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