Question

Few sites I've come across using either Google, Facebook or Twitter connect for login. Still they are asking for new password creation.

Ex: http://setapp.me/

Why user need to setup another password when the user is using OpenID/Facebook/Twitter connect?

One need I can think of: if the user disconnects the app from any of the above OAuth/OpenId connect services providers (Google/FB/Twitter/...), then as an alternative way for the user to login - as a best practice.

No correct solution

OTHER TIPS

What they're doing is an incremental step towards federation, but not what I'd describe as a best practice. For apps that aren't ready to fully embrace relying on another service for identity it is still sometimes helpful to connect with identity providers to speed up the sign-up process. In other words, just as a mechanism for pre-populating the signup form.

However, if using it for sign-on, then having a local password is one more potential vulnerability. The reality is the vast majority of users just re-use passwords across sites. That password is only as secure as the weakest application that stores it. If one app is compromised and email & passwords recovered, attackers know that a good percentage of those are valid logins elsewhere.

Best thing to do when federating with Google/Facebook/etc is to not ask the user for their password at all. Trust the major identity providers to keep account information & credentials secure rather than take on that responsibility yourself and deal with the fallout if your app is compromised.

Lots of good reading here if you're up for it: https://docs.google.com/a/google.com/document/pub?id=1O7jyQLb7dW6EnJrFsWZDyh0Yq0aFJU5UJ4i5QzYlTjU#h.moajj1qnb85l

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