If someone is sniffing your plain-text HTTP traffic (or cache/cookies) for passwords just turning the password into a hash won't help - The hash password can be "replayed" just as well as plain-text. The client would need to hash the password with something somewhat random (like the date and time) See the section on "AUTH CRAM-MD5" here: http://www.fehcom.de/qmail/smtpauth.html