I'm trying to pay my Virginia income taxes online, and they have disabled paste in any field of consequence. Paste in a password? Nope. Your bank's routing number? You're gonna have to hand-key that. Your bank account number? You better believe you're typing that in.
If you wanted to force people to create crappy passwords and cause them to accidentally siphon money out of strangers' bank accounts, this is how you'd do it. And somebody went to extra effort to make it be like this!
