I have the impression that ASP.NET Membership encrypts its cookie by default.
Is it relatively safe to assume that ASP.NET Membership protects against session hijacking (ala Firesheep)?
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ASP.NET membership uses the exact same mechanism as any other site and is absolutely vulnerable to Firesheep attack. The cookie itself cannot be encrypted in a way that keeps it from being hijacked. All communication with the server must be encrypted to protect from session hijacking, using SSL or WEP wireless encryption.