When I refer to masking I mean the asterisks that go in place of characters.
Masking can potentially create problems. If visitors mis-type their intended password, they may not know because their inputs were masked. Hence, they're unable to login and can become frustrated.
Brandon... I think Jakob gave bad advice on that one. Here is a post I wrote about it: http://www.bestwebimage.com/archives/is-jakob-missing-something-about-form-security/
Bruce Schneier now admits he was “probably” wrong when he initially agreed with Nielsen... here is his post: http://www.schneier.com/blog/archives/2009/07/the_pros_and_co.html
It helps, specially in public places, school, etc.
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