[S]ome passwords are gleaned by hacking into computers where intruders can find stored passwords. Those are stored in encrypted form, but there's software that can attack the encryption. Nearly all encrypted passwords are stored with the last character in clear text, warns NASA, so the last character is a throwaway. [Emphasis added.]
See #5 in Tech News Daily: How to Write the Perfect Password - Jan. 27, 2010
Does anyone know whether / when this is true? Have a reference suitable for an intelligent non-mathlete?
I usually assume "encrypted" actually means some salted iterated unidirectional hash but other forms of encryption are possible.