The only really secure way is to store the password encrypted.

For example, in mysql:

INSERT INTO USERS (USERNAME, PWORD) VALUES ('foo', MD5('bar');

SELECT FROM USERS WHERE USERNAME='foo' AND PWORD=MD5('bar');

Like the other person said.. you can never "retrieve a forgotten
password" when you do this... you'd have to reset it for them and then
provide the new password to them, because there is no way of decrypting
the password that's stored in the database (theoretically)

  - Rick
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