Chat Sniffer? does it really works? prevention?

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Hello, i just came across some software of the site, which can sniff conversations within the network..i was wondering if it really works?
There are many of them available online, this is just one of them:
chat.mingsoft.com/index.html


And is there a way to prevent conversation from being sniffed?
I've found one solution, which is to encrypt messages . It doesnt really prevent messages from being sniffed, but make the logs unreadable. lol
secway.fr/us/products/simplite_msn/home.php

Is there any way to prevent it?
 
short answer: NO. Anyone with the right tools can "sniff" the local lan.
Encryption is the only solution.
 
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