What format is my password sent in?

After installing and playing pso2 I have had 32 attempts on my account. 15 years of nothing then install PSO2 and all of a sudden a massive influx of attacks. Seems a bit dodgy to me. I read somewhere that sega in their infinite wisdom send it in standard text format if this is the case then they really need to sort it. If not then they really need to do something, not sure what but it got ridiculous. Having to stop playing a really fantastic game due to this atm. Will update as have changed password for the 33 time and not played and see if they try again. I have a 16 digit complex password and yet they always seems to hack it.... Hmmmm. Will update if it happens after not playing for a week.

Your password doesn't even go through SEGA's servers. It uses the XBOX App, Microsoft Store, and/or XBOX Console Companion to login automatically to the client. Any password transmission is done solely by Microsoft.