Passwords
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A password is a combination of letters and numbers that is only known by the user to enter any sort of account. It is important that it is kept safe because sensitive information could be kept in those accounts. A password should be changed often to make sure an account is not hacked.
Encryption
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It is the conversion into a code by scrambling the data. It can be done by using encryption software. It does not prevent hackers from obtaining the data but it makes it meaningless to hackers. The information can be decoded using a decryption key.