It's a common misconception among application developers that program memory is "safe" and anything stored in clear text in memory cannot really be hacked. Unfortunately, nothing could be further away from the truth. In this video created by
John Strand from PaulDotCom we see how simple it is to identify and dump passwords from computer memory. However, in most cases one would need administrative privileges to be able to dump memory. But once a hacker has that he could very easily crack other passwords used on the system simply with a memory dump. This video uses the
Mantech Memory DD tool for the demo.
SANS has a nice listing of tools which can be used for memory dumping on windows
here. Try them out! Happy Memory Hunting :)