Suppose a user uses a secure password at site A and a different but similar secure password at site B. Maybe something like mySecure12#PasswordA on site A and mySecure12#PasswordB on site B (feel free to use a different definition of "similarity" if it makes sense).
Suppose then that the password for site A is somehow compromised…maybe a malicious employee of site A or a security leak. Does this mean that site B's password has effectively been compromised as well, or is there no such thing as "password similarity" in this context? Does it make any difference whether the compromise on site A was a plain-text leak or a hashed version?
Best Answer
To answer the last part first: Yes, it would make a difference if the data disclosed were cleartext vs. hashed. In a hash, if you change a single character, the entire hash is completely different. The only way an attacker would know the password is to brute force the hash (not impossible, especially if the hash is unsalted. see rainbow tables).
As far as the similarity question, it would depend on what the attacker knows about you. If I get your password on site A and if I know you use certain patterns for creating usernames or such, I may try those same conventions on passwords on sites you use.
Alternatively, in the passwords you give above, if I as an attacker see an obvious pattern that I can use to separate a site-specific portion of the password from the generic password portion, I will definitely make that part of a custom password attack tailored to you.
As an example, say you have a super secure password like 58htg%HF!c. To use this password on different sites, you add a site-specific item to the beginning, so that you have passwords like: facebook58htg%HF!c, wellsfargo58htg%HF!c, or gmail58htg%HF!c, you can bet if I hack your facebook and get facebook58htg%HF!c I am going to see that pattern and use it on other sites I find that you may use.
It all comes down to patterns. Will the attacker see a pattern in the site-specific portion and generic portion of your password?