Question

Is there any way you can be sure that web application you want to register on is encrptying your passwords and not sotirng them in plain text (where admin can read them or attacker could easily get them)?

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Solution

Unless you are able to read the source code of the script processing your password, there is no way to know what's happening to it behind the scenes.

But there are some things about security you can find out on the client side, just to get a feel about the kind of security level this web application adheres to.

  • Check if the website is using a valid SSL certificate. This already tells you something on how feasible it is for someone to do network sniffing.
  • Have a look in the HTML source, and see how the form submitting your data is built. Is it using a POST request and not a GET?
  • Register with a fake account and check your cookies. Do you see anything that looks like your session information is saved in plain text or base64? And if something looks like base64 (the string ends with = or ==), decode it and see what the string really contains.
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