Plain text shared secrets problematic?

[Heilz]

Hi, 
I'm fairly new to the topic but I got the assignment to find out if the fact
that the shared secrets for user logins are in plain-text could be a problem
security-wise. 
Isn't there a way do encrypt them or make the password encryption more
secure? I've been researching for some hours now and fould several articles
about RADIUS' vulnerabilities, but noone seems to be concerned about this
subject.
I hope you might be able to clear things up for me.

Regards
Mathias


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