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You can test NBAR in order to detect, control and if wanted block such type of traffic. I post also a reference link for outside Cisco in order you to get a bit more info about. http://www.informit.com/articles/article.asp?p=345618&seqNum=5BR,jonatha...
Anyway you could think use SSH instead telnet for network login and disable password recovery and/or console access. In this way your password in sent via a ciphered tunnel and not in clear. This would only be posible if your chasis and IOS support S...
