One of my SaaS software vendors requires me to change passwords every 90 days, which is good.
What surprises me though, is that the password change screen errors with a note that my new password is too similar to an old password.
This most often happens if I change less than three or four of the characters within a password.
If it were an exact match to an old password, I would have confidence that they are hashing my password, and comparing the hashes. The "similarity" matching makes me think they are storing and comparing the plaintext versions.
Is it possible to determine "similarity" by comparing one hash to another, or is this vendor more likely storing my password in plain-text?