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Although it is based on a reasonably secure hash function ( Triple DES, derived from the block cipher DES), the LM HASH can easily be cracked because of two weaknesses in the way it is implemented. First, passwords longer than 7 characters are cut into two half-passwords and each half is hashed separately. Second, all lower case letters in the password are changed to upper case before the password is hashed. As a result, even if there are different passwords made of mixed case letters and numbers, there are only different LMHashes of password halves.
Modern desktop machines can crack alphanumerical LMHashes in hours with a brute force attack or in a few seconds using a time-memory trade-off.
In 2004, a complete dictionary of all LM Hash values was published for the entire domain consisting of alphabets. With such a database available "dictionary attacks" on LM Hash became trivial for passwords which consisted of alphabets only.