> how do they test so many passwords?
Typically? The bad guys have acquired/stolen the hashed (sort'a like encryption)
edition of the password table ... and they process it off-line, without being hindered
by lock-outs or retry inhibitors.
Many sysadmins mistakenly assume that the hashed edition of the password table is
safe/secure, and do not adequately protect it. As a user, you've got no way to know.
Where do they get all the compute power? They buy it. Many computers that are
compromised by virus/trojans, are part of botnets that are "for rent." The typical
rate is ~$35 per 1,000 machine days. Of course; if you are the botnet owner, those
machine hours are free. Or; they use stolen CC's. How big are botnets? It is not
unusual to find botnets with 500,000+ systems.
Important Tip #1:
If any site you use, is able to return your real password, in clear-text, do
NOT use that site. Such [cough] features make such sites bigger targets
as it is easier to reverse engineer the hash & salt.
This includes avoiding the use of master-login features of Facebook,
Google, MS Live that offer to log-you-in to other sites automagically. It
sure is convenient - but it is a HUGE target.
Important Tip #2:
Use a different password for each site you log-in to. Otherwise; your
password is only as secure as the weakest site.
How do I remember all my different, long, random passwords? I don't. I
use a trustworthy password manager/vault. There are a few good ones.
There are a LOT of lousy ones. Me? Based on this recent whitepaper, I
use LastPass:
CUT-PASTE this link into your browser (because the PoA software is
mangling the redirect.
http://www.elcomsoft.com/WP/BH-EU-2012-WP.pdf
Everyone gets to make their own decision in this regard. Since this paper
was published, the 1password author claims to have corrected his
deficiencies.