Yes, you're correct: if the data stream is unencrypted on the client's machine, that's pretty secure, although you might want to investigate the encryption scheme, local firewalls, etc..

So at the risk of oversimplifying: there's a WAN side and a LAN side. In most networks, the LAN side is highly controlled; that does not sound like the case in your situation. I suggest that you imagine that anyone on the LAN side is capable of running ettercap. I suggest that you run ettercap on the LAN side and see what shows up. You might be OK; you might not be OK.

I think the data in RAM is pretty secure, again with caveats about firewalls, etc.

In reply to Re^3: Is data in RAM insecure, or am I just paranoid? by McMahon
in thread Is data in RAM insecure, or am I just paranoid? by theAcolyte

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