Yes, probably
packet sniffing is easy
hence there's not a whole lot of sensitive info that travels unencrypted (or un-obfuscated) over the wire
It's almost never as easy as
"ooh look, some plain text login credentials"
Encryption happens all the time
Unless you're using something "truly" insecure
Take this site, as an example
HTTP only
there is no encrypted channel between your machine & the DV webserver
therefore anyone with access to your network traffic can see exactly what you send & receive from the DV webserver, including the login procedure
But, encryption does take place
Capture the conversation between your machine and the DV webserver while logging in
see what happens
It'll look something like this (I've changed the actual hashes for obvious reasons)
Code:
83901030da60c56d2d74682e9828; bbsessionhash=374e6f94ee6169fbc7927830392e540e; bblastvisit=1235724432; bblastactivity=0
Content-Type: application/x-www-form-urlencoded
Content-Length: 178
vb_login_username=Ynot&cookieuser=1&vb_login_password=&s=&do=login&vb_login_md5password=cd923e2a02e64f85e8c656161d262087&vb_login_md5password_utf=cd923e2a02e64f85e8c656161d262087
You'll notice that at no point does the raw, readable password for my account travel across the network
The encryption happens client side
A quick look at the html source for the login form shows this
Code:
<form action="login.php?do=login" method="post" onsubmit="md5hash(vb_login_password, vb_login_md5password, vb_login_md5password_utf, 0)">
So, in order for someone to actually get my password, they'd have to either compromise my machine, or crack the MD5 hash
obviously, compromising my machine is the easy option
(Well, so they think 
this is the big difference between windows & linux - all they need for a windows client machine is a keylogger - good luck getting a keylogger onto a *nix machine undetected)
but cracking the hash is certainly do-able
You'd need to find how it constructs the input (salts, etc.)
but it all happens client side, so everyone has the same javascript encryption function
Crack the hash and reconstruct the textbox input by going backwards through the md5hash javascript function
It'd be far better if this site used SSL encryption (https)
as then, the only way to compromise someone's account would be to gain control of the DV webserver
As it stands, all you need is the network conversation and bit of work to backtrack though the client side encryption
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