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Should you install the Encryption Configuration component?
The answer is simple, if you have your site using SSL then you don't need it. If you are not using SSL then you should install it in your Joomla sites. However, this doesn't guarantee you will be fully protected against Man-In-The-Middle attacks.
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A couple of years ago my site forum started to receive weird posts. Back then I had not imagined that I would have to take care of people posting messages related to publicity and other stuff that had nothing to do with Joomla extensions.
So, I started to try to find for a solution at the Joomla Extensions Directory. There I found a couple of extensions the prevent spammers registration by checking an online database containing IP addresses, user ids and emails of people who had been reported as spammers. At that moment I didn't think that was a good solution, I didn't believe that there could be records of all spammers in the world.