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In my school everyone must change their password every six months.

The new passwords cannot be the exact same as the old one, this make sense, however many of my peers often complain that they need to use a different password almost entirely because they cannot choose a new password in which only a few characters differ from the old password.

Isn't this a sign of unhashed password storage, or have I overlooked something?

If this was the case, I'd be really surprised. Nearly every computer in the country uses this management system.

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