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Remember good passwords should;

• be 8 characters or longer, which forces you to use multiple words or extra symbols.
• have upper case, lower case, symbols, and numbers; or at least three of those four groups.
• not be a common word and should not be a common phrase.
• not contain a date, a name, or other things that can be associated with you.
• be created randomly or semi-randomly.

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How Passwords are stolen

When you are creating a strong password, it can help to know the tactics hackers use to steal them. Here are some of the most frequently used techniques:

• Guessing. Programs designed to guess a user’s password are common. They often use personal information found online—such as names, birth dates, names of friends or significant others, pet names or license plate numbers—as a starting point. These programs can even search for a word spelled backwards. TIP: It’s best to steer clear of any personally identifying information when creating a password.
• Dictionary-based attacks. Programs and software also exist that run every word in a dictionary or word list against a user name in hopes of finding a perfect match. TIP: Staying away from actual words, even in a foreign language, is recommended.
• “Brute Force” attacks. By trying every conceivable combination of key strokes in tandem with a user name, brute force attacks often discover the correct password. Programs can execute a brute force attack very quickly. TIP: The best way to beat such an attack is with a long, complex password that uses upper and lower case letters, numbers, special characters and punctuation marks.
• Phishing. Phishing scams usually try to hook you with an urgent IM or e-mail message designed to alarm or excite you into responding. These messages often appear to be from a friend, bank or other legitimate source directing you to phony Web sites designed to trick you into providing personal information, such as your user name and password.
TIP: Best advice is don’t click a link in any suspicious e-mails, and don’t provide your information unless you trust the source.
• “Shoulder surfing.” Passwords are not always stolen online. A hacker who is lurking around in a computer lab, cybercafé or library may be there for the express purpose of watching you enter your user name and password into a computer. TIP: Try to enter your passwords quickly, without looking at the keyboard, as a defense against this type of theft.