Password sniffing refers to the use of password sniffing programs or software that monitor network traffic to capture and record usernames and passwords as users login to networks. These programs listen to data packets passing through a network and record any instances of passwords being transmitted. Attackers can then use the captured login credentials to impersonate authorized users and access restricted information. To prevent password sniffing, users should avoid sending sensitive information over public networks and be aware that passwords could be at risk of interception.