1Password sends your password across the loopback interface in clear text
Ross Hosman
28426

I’m not sure, but it seems to me that if you run the service (whatever it is) by binding it to the localhost address, and then using https:// on your local machine and if not encrypted running it through a Stunnel Proxy first, it should encrypt the traffic on the loopback address:

http://security.stackexchange.com/questions/106333/is-binding-all-private-services-to-the-127-0-0-1-address-and-then-accessing-them

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