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No, public key encryption prevents the key from being intercepted.I'm going to use Pidgin + the encryption plugin.
The reason why I'm asking this is because I found out that my previous employer is now using packet sniffing. I still talk to a friend of mine who's still working there, so I don't want any of my info spread out.
Can someone who's using packet sniffing to monitor IMs on one network be able to read passwords from the IM party who is not on the immediate network? I don't think so, but I just want to make sure.
No, public key encryption prevents the key from being intercepted.
http://en.wikipedia.org/wiki/Public-key_cryptography
Also be sure neither of you have logging enabled if there is a chance of the machine being scanned by someone else in the office.
of course not, it's the whole point of public key cryptography