Plain text files do not scramble data. Anyone who opens the file can read every password instantly.
Sometimes, finding this file isn't the result of a user's mistake, but a built-in feature that looks like a bug: : Many users have panicked after finding a passwords.txt file in their Microsoft Teams or Google Chrome folders. : The file doesn't actually contain
Operating systems and security frameworks use advanced encryption to protect data. A text file bypasses all of them.
If you want, I can:
In cybersecurity competitions (Capture The Flag or CTF), finding a passwords.txt
Here's a simple example of securely storing passwords using hashing and salting with Python: