Let's say you log requests and the POST body parameters that are sent along with them. Oops, forgot to explicitly blank out and fields known to contain passwords. Now they're saved in cleartext in the logs every time the user logs in.
We made this mistake - the trick is determining what fields are sensitive, what are sensitive enough that they should be censored but included in the log, and the rest of the crud.
It turns out that this is non-trivial - when censoring how do you indicate that something was changed, while keeping the output to a minimum? blank/"null" was rejected because it would mask other problems, and "* THIS FIELD HAS BEEN REDACTED DUE TO SENSITIVE INFORMATION *" was rejected for being "too long". Currently we use "XXXXX", which has caused some intern head scratching but is otherwise fine.
Easy, you have a framework that validates & sanitizes all your parameters, don't allow any non-declared parameter, and make something like "can_be_logged" a mandatory attribute, then only log those & audit them.
Wouldn't that make it easier for someone that has access to hashed passwords in the case of a database leak? They would just have to submit the username and the hashed password (which they now have).
In this case client side will have our algorithm (i.e in JavaScript) + private key which we will use to hash the password. If this is the case I could not see any different between giving hacker password or hash-password with algorithm and key.
So sure you don't want to log everything in Prod, but maybe you do in Dev. In that case, a bug would be to push the dev logging configuration to Prod. Oops.
If you have the clear text password at any point in your codebase, then there is no full-proof way to prevent to log it unintentionally as the result of a bug. You just have to be extra-careful ( code review, minimal amount code manipulating it, prod-like testing environment with log scanner, ...)