You know each time we type a password and it shows nothing but dots; can a hacker figure out the real password or not?
Yes, there are many legitimate tools to do so. For example, the Nirsoft website lists many http://www.nirsoft.net/password_recovery_tools.html And, unbelievably, the Nirsoft tools are free! Also, many versions of malware can record keystrokes or take screen shots...
The purpose of masking a password with dots is to prevent someone looking over your shoulder from reading the password, nothing more.