Ever wonder how some sites keep track of your visit even after clearing all the cookies and cache? Besides permanent cookies, which browsers can clear and also have an expiration, we can look into Flash based Local Shared Object model.
Take for instance Bank of America. According to their Privacy & Security statement they (also) use flash objects to remember your computer. Even when you delete your cookies, cache and temp files they can still recognize your user ID (when you opted to remember the computer) and bypass the security question. There are others that do similar techniques, like INGDirect and so on.
If you are wondering where the information is getting stored, then look under "C:\Documents and Settings\YourUSERID\Application Data\Macromedia\Flash Player\#SharedObjects". And to see how to set your preferences, check this article here.
While this is a neat technique to overcome ordinary user's cookie deletions, the technique is subject to concerns regarding how well it's being used to secure the data. Unlike cookies, flash cache is not something all the users are aware of. Hence before using this technique we need to ensure that the users are educated on risks if using a public machine and leaving a trail of flash cache.
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