Security Through Obscurity

It never works...
http://en.wikipedia.org/wiki/PunkBuster
Because PunkBuster scans all of a machine's virtual memory, malicious users were able to cause mass false positives by transmitting text fragments from known cheat programs onto a high population IRC channel. When PunkBuster detected the text within user's IRC client text buffers, the users were banned.

Passwords are security through obscurity. Let's throw those away. Infact let's throw all encryption away, because it's just obscuring and thus bound to be unobscured. It's not safe! Remember "Security through obscurity" does not work. Never! Clearly passwords does not work.